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The parties have stipulated that Mr. Posner’s will included
none of the substantive dispositions, such as for income
beneficiaries, remaindermen, and powers of appointment, normally
found in a document establishing a testamentary trust.
In 1976, Mr. Posner’s estate filed a Federal estate tax
return, attaching thereto a copy of Mr. Posner’s will. On that
return, Mr. Posner’s estate claimed a marital deduction with
respect to the marital trust property. Respondent audited this
estate tax return and allowed the claimed marital deduction.
Decedent’s Will
Before her death, decedent and her two daughters (the
daughters) had a falling out. In her will, dated January 3,
1996, decedent effectively disinherited the daughters, leaving
most of her estate to her son David, his family, and three
charities.2 In her will, decedent directed the marital trust
property, valued at approximately $5 million, to be paid into a
revocable trust (the revocable trust). To one daughter decedent
left $100; to the other daughter she left only a photograph. The
daughters unsuccessfully challenged the will’s validity.3
2 After her death, decedent’s son, David B. Posner (David)
was appointed personal representative of her estate. David was
not a personal representative of Mr. Posner’s estate.
3 In the Circuit Court for Baltimore County, Md. (Baltimore
County circuit court), the daughters attempted to have decedent’s
will and revocable trust declared invalid, alleging fraud, undue
influence, and tortious interference by their brother, David.
(continued...)
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