- 3 -
liability that would be incurred by the designated beneficiary
upon distribution of the IRAs. We hold that the estate may not
reduce the value of the IRAs.
The following is a summary of the relevant facts that are
not in dispute. They are stated solely for purposes of deciding
the pending cross-motions for summary judgment and are not
findings of fact for this case. See Lakewood Associates v.
Commissioner, T.C. Memo. 1995-552 (citing Fed. R. Civ. P. 52(a)).
Background
Doris F. Kahn (decedent) died testate on February 16, 2000
(the valuation date). At the time of death, decedent resided in
Glencoe, Illinois. The trustee and executor of the decedent’s
estate, LaSalle Bank, N.A., had its office in Chicago, Illinois,
at the time the petition was filed. At the time of her death,
decedent owned two IRAs--a Harris Bank IRA and a Rothschild IRA.
Both IRA trust agreements provide that the interests in the IRAs
themselves are not transferable; however, both IRAs allow the
underlying marketable securities to be sold.2 The Harris IRA
2The Rothschild IRA agreement provides:
Section 5.7B. Neither the Account Holder nor the
Trustee shall have the right to amend or terminate this
Trust in such a manner as would cause or permit all or
part of the entire interest of the Account Holder to be
diverted for purposes other than their exclusive
benefit or that of their Beneficiary. No Account
Holder shall have the right to sell, assign, discount,
or pledge as collateral for a loan any asset of this
trust.
(continued...)
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