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b. RD Trusts
Ten RD Trusts were created in September 1974. The record
does not indicate who created the RD trusts. On September 30,
1983, decedent exercised his powers of appointment over the RD
Trusts and created 10 trusts to succeed and receive the assets of
the RD Trusts. The RD trusts contain no provision for the
payment of Federal estate tax from trust assets.
We refer to the LF Trusts, the RD Trusts, and their
successors as the “notice trusts” because respondent determined
in the notice of deficiency, and the parties agree, that the
value of those trusts is includable in decedent’s gross estate.
2. Revocable Trust
Decedent created a revocable trust on December 19, 1989,
under which he was the grantor and the trustee. Decedent
retained until his death the right to revoke, modify, alter, or
amend the trust instrument and to withdraw income and principal
from the revocable trust.
Articles 3.2 and 4.1 of the trust instrument provide as
follows:
3.2 Amount of Allocation to Marital Trust. The
allocation herein to the Marital Trust shall have a
value equal to the smallest pecuniary amount which, if
allowed as a federal estate tax marital deduction,
would result in the least federal estate tax being
payable by reason of the Grantor’s death, taking into
account the maximum available unified credit and the
credit for state death taxes, but only to the extent
that those state death taxes are not thereby increased
* * *.
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