Estate of Sarah E. Greve, deceased, Charles E. Greve & David R. Greve, Co-Executors - Page 13

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          dent’s estate.6  In that notice, respondent determined that                 
          decedent had a general power of appointment with respect to one-            
          sixth of the principal of the testamentary trust and that dece-             
          dent exercised that power in decedent’s will.  Consequently,                
          respondent increased decedent’s total gross estate by $314,612,             
          which was the date-of-death value that the estate attributed to             
          such power in the explanation as to Schedule H and which respon-            
          dent accepted.7  In the notice, respondent further determined               
          that at the time of her death decedent had the power to withdraw            
          $5,000 from the principal of the inter vivos trust and that that            
          power was a general power of appointment.  Consequently, respon-            
          dent increased decedent’s total gross estate by $5,000.                     
                                       OPINION                                        
               The parties do not address section 7491(a).  The estate                
          filed decedent’s estate tax return on September 27, 1999.  We               
          presume that respondent’s examination of that return commenced              
          after July 22, 1998, and that section 7491(a) is applicable in              
          the instant case.  The estate has failed to establish that it               

               6In the notice, respondent determined to allow all of the              
          expenses that the estate claimed in Schedule J, Funeral Expenses            
          and Expenses Incurred in Administering Property Subject to                  
          Claims, included as part of decedent’s estate tax return.  The              
          parties stipulated that as a result of the instant case the                 
          estate has incurred certain additional expenses that are deduct-            
          ible.                                                                       
               7The parties stipulated that the value of one-sixth of the             
          principal of the testamentary trust on the date of decedent’s               
          death was $320,732.11, and not $314,612.                                    





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