Estate of Helen Christiansen, Deceased, Christine Christiansen Hamilton, Personal Representative - Page 11




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          increase of more than 35 percent over its reported value.  They             
          also agreed that her interest in MHC Land and Cattle was worth              
          $6,751,404.63, an increase of more than 60 percent over its                 
          reported value.  This means that the total value of the gross               
          estate was $9,578,895.93 instead of $6,512,223.20.                          
               If the disclaimer were applied to this increased value,                
          property with a fair market value of $2,421,671.95 would pass to            
          the Trust and property with a fair market value of $807,223.98              
          would pass to the Foundation.6  The estate asserts that this                
          increase in value entitles it to an increase in the charitable              
          deduction--both for the entire part passing to the Foundation               
          and also the increased value of the Trust’s annuity interest.               
               The Commissioner concedes one point--he is now willing to              
          allow the estate the $40,555.80 reported on the return as going             
          to the Foundation.  But he still objects to any deduction for the           
          property passing to the Trust, and now he contests any increase             
          in the deduction for the property passing to the Foundation.                
                                       OPINION                                        
          I.   The Disclaimer in Favor of the Trust                                   
               We begin with the basics.  Under the Trust agreement, the              
          Foundation has the right to guaranteed annuity payments for the             


               6 The lawyer hired to handle the estate’s administration               
          testified at trial that he will file a petition with the probate            
          court after the resolution of this case.  That petition will                
          describe what happened here, and only then will he ask the                  
          probate court to approve distributions to the beneficiaries.                





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