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return by giving only tentative values pending the outcome of the
litigation. In such situations, reasonable estimates are
permitted and are preferable to the failure to file the estate
tax return within the prescribed time. Id.
For decedents dying in the year 1986, the threshold
requirement for filing a Federal estate tax return was a gross
estate exceeding $500,000. Sec. 6018(a)(1), (3).6 On January 6,
1987, approximately 6 weeks after the due date of the estate tax
return, the executrix filed an inventory with the probate court
that listed an aggregate value of assets in decedent's estate of
$600,147.33. It is notable that the $600,147.33 value in this
inventory did not include the values of other listed assets: (1)
150 shares of H.R.M., Inc., (2) 182 shares of Thomas, Inc., (3)
52 shares of Uncle Henry's, Inc., and (4) an interest in the
Thomas Trust. Rather, the values of these assets were listed as
"unknown".
It is clear to this Court that, at some time prior to the
due date for filing the estate tax return, the executrix knew or
should have known that the value of decedent's gross estate
6 The estate makes assertions on brief that the value of
decedent's estate after taking into account marital deductions
would have fallen below the filing threshold. This argument
ignores the fact that the estate tax return filing requirement is
based on a gross estate figure rather than a taxable estate. The
marital deduction is taken into account only with respect to the
taxable estate. Secs. 2031, 2051, 2056.
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