H's estate can't exclude property not taxed in W's estate

Article Abstract:

The Tax Court held, in Estate of Cavenaugh, that a husband's estate could not exclude property for which the husband made a qualified terminable interest property marital deduction election in the wife's estate. The wife's will stated that the husband had only a life-time interest, but the husband claimed the deduction, sold the property and benefited from the proceeds. The husband's estate tried to claim the election was nullified by the wife's will but the Court determined that the election should hold and included all of the previously excluded property under IRC section 2044.

Decedents' estates

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Service could revalue gifts for estate tax purposes

Article Abstract:

The US Tax Court has ruled in 'Stalcup' that the IRS can revalue gifts made in previous years for payment of estate tax even after the statute of limitations for revaluing the gifts for gift tax purposes has expired. The court decided that Congress must not have wanted the statute of limitations to apply to estate tax calculations since the estate tax statutes do not refer to IRC Section 2504(c), the gift tax statute that created the statute of limitations.

Gift tax, Limitation of actions (Taxation), Statute of limitations (Taxation)

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Estate tax burden could not be shifted to entirety property

Article Abstract:

The Fourth Circuit held in Estate of Reno that a testator could not reduce the marital deduction by shifting the estate tax burden from probate assets to nonprobate tenancy by the entirety property. This was a reversal of the Tax Court decision. The Fourth Circuit's decision meant that all of Reno's entirety property would go to his spouse, thereby qualifying for the marital deduction.

Interpretation and construction, Real property tax, Real property taxes, Probate law, Income shifting, Tenancy by the entirety

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