Estate of Algerine Allen Smith - Page 14




                                       - 14 -                                         
               sound valuation will be based upon all the relevant                    
               facts, but the elements of common sense, informed                      
               judgment and reasonableness must enter into the process                
               of weighing those facts and determining their aggregate                
               significance.  [Id. at 526.]                                           
          The Court of Appeals then emphasized that “every lawsuit is                 
          unique; thus it is incumbent on each party to supply the Tax                
          Court with relevant evidence of predeath facts and occurrences              
          supporting the value of the Exxon claim advocated by that party.”           
          Id. at 526.                                                                 
               The Court of Appeals also disagreed with our holding that              
          the section 1341(a) income tax benefit that would arise from any            
          payment of Exxon’s claim was an asset includable in the gross               
          estate.  The Court of Appeals concluded that the value, for                 
          estate tax purposes, of the contingent section 1341 deduction was           
          not a free-standing asset of the estate but was one of the                  
          factors to be considered in appraising the date-of-death value              
          eventually assigned to Exxon’s claim for purposes of the section            
          2053(a)(3) deduction.  Id. at 528.  The Court of Appeals noted:             
               Of course, once the Tax Court determines, on remand,                   
               the gross value of the Exxon claim for purposes of                     
               section 2053(a)(3), calculation of the section 1341                    
               income tax benefit becomes a simple mathematical                       
               calculation, the result of which will diminish the                     
               gross value of the Exxon claim, dollar for dollar, to                  
               produce a net deduction from the Estate. * * *  [Id.]                  
          The Court of Appeals ultimately remanded the case for further               
          proceedings consistent with the instructions provided in its                
          opinion.  Id. at 532.                                                       






Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011