- 11 -
Morgan v. Commissioner, 309 U.S. 78, 80 (1940); Estate of
Pierpont v. Commissioner, 336 F.2d 277, 281 (4th Cir. 1964),
affg. T.C. Memo. 1962-286; Estate of Allen v. Commissioner, 29
T.C. 465, 467-468 (1957). Federal law, in turn, determines the
Federal taxation of such interests or rights. Morgan v.
Commissioner, supra.7
“[T]he highest court of the state is the final arbiter of
what is state law. When it has spoken, its pronouncement is to
be accepted by federal courts as defining state law”. West v.
Am. Tel. & Tel. Co., 311 U.S. 223, 236 (1940). On the other
hand, we are not necessarily bound to follow decisions of State
intermediate appellate courts. Commissioner v. Estate of Bosch,
387 U.S. 456, 465 (1967); Estate of Rapp v. Commissioner, 140
F.3d 1211, 1216 (9th Cir. 1998), affg. and remanding on another
ground T.C. Memo. 1996-10; Estate of Harper v. Commissioner, 93
T.C. 368, 374 (1989); Estate of Pangas v. Commissioner, 52 T.C.
99, 101 (1969). Instead, we give “proper regard” to decisions of
State intermediate appellate courts if these decisions are on
7 “If it is found in a given case that an interest or right
created by local law was the object intended to be taxed, the
federal law must prevail no matter what name is given to the
interest or right by state law.” Morgan v. Commissioner, 309
U.S. 78, 81 (1940). To this same end, the term “power of
appointment” includes all powers that are in substance and effect
powers of appointment regardless of the nomenclature used in
creating the power and regardless of local property law
connotations. Sec. 20.2041-1(b)(1), Estate Tax Regs.; see also
Martin v. United States, 780 F.2d 1147, 1148 (4th Cir. 1986).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011