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concession. The statement to which the estate refers was made by
respondent in his pretrial memorandum filed with the Court.
Before the parties agreed that the marital deduction is
inapplicable to the KPLP assets included in Edna’s gross estate,
the estate argued that the application of section 2036 would
cause the KPLP assets to pass to Austin at Edna’s death (a
requirement of section 2056) under the terms of the living trust.
In response, respondent stated:
Under Articles 8 and 9 of the [living] trust the
surviving spouse received a right to trust income
during life and a general power of appointment.
However, the assets that Edna and Austin used to fund
the KPLP were never part of the [living] trust, nor was
the 98 percent KPLP limited interest the decedents
transferred to their sons. Thus, the surviving spouse
has no right to the income or the corpus of 98 percent
of the property transferred to the KPLP, nor does the
surviving spouse have a power of appointment over that
property. * * * [Emphasis omitted.]
In the context of respondent’s argument that the property held by
KPLP did not pass to Austin at Edna’s death, respondent’s
statement is neither a concession that section 2036 does not
apply to the KPLP assets nor inconsistent with his position that
the value of the KPLP property is includable in Edna’s gross
estate. We find that respondent has not conceded any issues by
reason of the statement in his pretrial memorandum.
IV. Section 6651(a)(1) Addition to Tax
Section 6075(a) requires that all estate tax returns filed
pursuant to section 6018(a) be filed within 9 months after the
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