Estate of Eleanor T.R. Trotter - Page 11




                                       - 11 -                                         
          court proceedings that arise in connection with examinations                
          commencing after July 22, 1998.  Internal Revenue Service                   
          Restructuring & Reform Act of 1998, Pub. L. 105-206, sec.                   
          3001(c), 112 Stat. 685, 727.  Since the parties here stipulated             
          that examination of the estate tax return at issue was initiated            
          on October 28, 1997, section 7491 is inapplicable, and the                  
          estate’s references thereto on brief are misplaced.  The burden             
          therefore remains on the estate to establish that respondent’s              
          determination is erroneous.                                                 
               B.  Existence of Consideration                                         
               In accordance with the foregoing standards, the value of the           
          condominium must be included in decedent’s gross estate if she              
          retained an interest therein of a type described in section                 
          2036(a), unless she received adequate and full consideration for            
          the transfer at issue.  As a threshold matter, we note that both            
          parties have proposed as a finding of fact that no consideration            
          was paid for the transfer.  Since nothing in the record                     
          establishes that the conveyance of title was other than                     
          gratuitous, we accept the proposed finding as a concession by the           
          estate.  We also observe that even if decedent’s subsequent rent-           
          free occupancy is taken into account in this calculus, it is                
          self-evident that the value of a life estate is not the                     










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