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section 6651(a)(1)2 of $10,331. The deficiency arises from
respondent’s disallowance of the marital deduction for a trust
which held property valued at $533,762 at the time of decedent’s
death. The sole issue3 for decision is whether under section
2056(b)(7) the surviving spouse’s interest in the “Marital
Deduction Trust” qualifies for the marital deduction.
Background
The parties submitted this case fully stipulated pursuant to
Rule 122. The stipulation of facts and the attached exhibits are
incorporated herein by this reference. At the time the petition
was filed, the mailing address for the estate and for the
executrix was in Dewitt, Arkansas.
A. Decedent’s Estate Plan
Decedent was in the business of farm equipment sales.
Around May 1996, 18 months before his death, decedent had an
operation, after which the doctor informed him that he had
terminal lung and colon cancer. Immediately following decedent’s
operation, the doctor estimated that decedent had a maximum of 2
2 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the date of decedent’s
death, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
3 The parties stipulated that the estate’s Federal estate
tax return was late filed on Aug. 14, 1998, and that, to the
extent that a Federal estate tax deficiency is finally
determined, the failure-to-file addition to tax is applicable
pursuant to sec. 6651(a)(1).
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