In the Estate of Christiansen v. Commissioner case, the decedent, who died in April 2001, left all property to her only child H through will that anticipated disclaimer and H disclaimed a portion of the gross estate valued at over $6,350,000. The will provided that 75% of the disclaimed portion would pass to a charitable foundation and 25% would pass to 20-year charitable lead annuity trust to pay the annuity to the foundation. H did not disclaim the contingent remainder interest in the property passing to the trust; the estate claimed deductions for values of property passing to trust to the extent of present value of annuity interest, and of property passing to the foundation. The IRS determined a higher value of the estate than reported on the return and disallowed the deductions for property passing to the trust and to the foundation, but parties stipulated higher value for estate and the IRS conceded deductibility of the original amount passing to the foundation. The Tax Court determined that no deduction was allowed for value of any property passing to the trust since H's partial disclaimer was not qualified under Section 2518 and deduction was allowed for the full value of the property passing to the foundation since disclaimer of that property was qualified partial disclaimer under Section 2518 and not public policy precluded increasing the amount of the deduction.
ESTATE OF HELEN CHRISTIANSEN, DECEASE
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"ESTATE OF HELEN CHRISTIANSEN, DECEASED, CHRISTINE CHRISTIANSEN HAMILTON, PERSONAL REPRESENTATIVE, PETITIONER v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT"Please download to view full document