Estate of Merle Allen Whiting, Jr., Deceased, Vicki Ann Whiting, Executrix - Page 19

                                       - 19 -                                         
          citations to section 2056 clearly establish that the trust’s                
          purpose was to secure the marital deduction).  In valuing the               
          assets to be placed in the marital deduction trust, the trust               
          agreement states that decedent intended to “have the result of              
          qualifying the marital deduction for estate tax purposes”.  Only            
          assets which qualify for the marital deduction may be placed in             
          the marital deduction trust.  The amount of the distribution to             
          the marital deduction trust is “the excess * * * of the                     
          decedent’s taxable estate * * * over the exemption equivalent of            
          the * * * unified credit”.  Additionally, the terms ”marital                
          deduction”, “gross estate”, and others are defined in the trust             
          agreement as having the same meaning as the definitions found in            
          the Internal Revenue Code.                                                  
               Third, the circumstances surrounding the drafting of the               
          trust indicate that decedent intended to qualify for the marital            
          deduction.  Decedent knew that he was terminally ill and hired              
          specialized tax attorneys to draft the trust:  Two are Arkansas             
          board recognized specialists in tax law, one is a certified                 
          public accountant, and two have a master of laws in taxation.               
          The intent of the draftsman of the marital deduction trust was to           
          create a trust which qualified for the marital deduction.                   
               We note that Estate of Walsh v. Commissioner, 110 T.C. 393             
          (1998), and Estate of Tingley v. Commissioner, 22 T.C. 402                  
          (1954), affd. sub nom. Starrett v. Commissioner, 223 F.2d 163               

Page:  Previous  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  Next

Last modified: May 25, 2011