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is not included in the decedent’s gross estate. Sec. 20.2040-1,
Estate Tax Regs.
Section 2040 creates a rebuttable presumption that the
entire value of the jointly owned property is includable in the
decedent’s estate with the burden falling upon the estate to show
the consideration. Hahn v. Commissioner, 110 T.C. 140, 144
(1998); Estate of Heidt v. Commissioner, 8 T.C. 969 (1947), affd.
per curiam 170 F.2d 1021 (9th Cir. 1948). Finally, our
determination of whether Mrs. McReady provided consideration
adequate to exclude from decedent’s gross estate one-half the
value of the Bradley property is a factual one. Estate of Heidt
v. Commissioner, supra at 974.
Respondent argues that the estate has not shown that there
was sufficient consideration.4 The estate counters that there
was adequate consideration in the form of property management
services with respect to Bradley and the living accommodations
provided by the McReadys to decedent, all in exchange for an
interest in Western.
In particular, respondent relies on Spaeder v. United
States, 478 F. Supp. 73, 79 (W.D. Pa. 1978). In that case the
4 Respondent also argued that no valid agreement existed
between decedent and the McReadys because it was an unenforceable
oral agreement to convey real property. We quickly dispense with
that argument because decedent actually deeded the property to
Mrs. McReady and herself, albeit almost 4 years after the
parties’ oral agreement.
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