- 3 -
MEMORANDUM OPINION
NIMS, Judge: Respondent determined a Federal estate tax
deficiency for the estate of decedent Marvin M. Schwan (the
Estate) in the primary amount of $415,480,079 and in an
alternative amount of $181,921,766. In computing the primary
deficiency, respondent determined that no deduction was allowable
for a charitable bequest to the Marvin M. Schwan Foundation (the
Foundation) because, due to “an unresolved controversy”, the
amount to be received by the Foundation had not been established
to exceed the estate taxes payable from such bequest. The
parties now agree that the referenced controversy has been
settled, and respondent has conceded this primary position.
Hence, only respondent’s alternative position, which was based on
the terms of decedent’s estate plan without regard to the pending
controversy, presently remains at issue.
By a separate notice of deficiency, respondent further
determined that the Foundation was similarly liable for the
foregoing deficiencies as a result of its transferee status.
Procedural Posture
These consolidated cases are before the Court on
petitioners’ motion for summary judgment and respondent’s cross-
motion for partial summary judgment. Unless otherwise indicated,
all section references are to sections of the Internal Revenue
Code in effect as of the date of decedent’s death, and all Rule
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011