-2-
Held, further: The entire value of the property
passing to the foundation--including the increased
amount passing to the foundation because of the
increased valuation of C’s gross estate--is deductible
because the disclaimer of that property is a qualified
partial disclaimer under section 2518, and because no
public policy bars increasing the amount of that
deduction.
John W. Porter and J. Graham Kenney, for the estate.
Trent D. Usitalo, for respondent.
HOLMES, Judge:1 Helen Christiansen’s will left everything
to her only child, Christine Hamilton. The will anticipated that
Hamilton would disclaim a part of her inheritance, and directed
that any disclaimed property would go in part to a charitable
trust and in part to a charitable foundation that Christiansen
had established. The trust would last for 20 years, and pay an
annuity of 7 percent of the corpus’s net fair market value at the
time of Christiansen’s death to the foundation. At the end of
the 20 years, if Hamilton were still alive, the property left in
the trust would go to her.
The parties settled the issue of the estate’s value--
increasing it substantially over what was reported on the
estate’s tax return. There are two questions presented. The
first is whether the estate can claim a charitable deduction for
1 The Chief Judge reassigned this case to Judge Holmes from
Judge Kroupa.
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