Marital deduction was not allowed for post-death appreciation of marital share, rules Tax Court

Article Abstract:

The Tax Court in Estate of Agnello denied a marital deduction for the appreciated value of an estate between the time of the descendant's death and the time the assets were received by Agnello. New Jersey law allowed the deduction, which grew in value as Agnello's right of election process was being carried out. The settlement stipulated that post-death appreciation of the assets would be considered part of the estate settlement, so it appears the Tax Court was wrong to deny the deduction based upon this final amount.

Transfer taxes

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Assets received by surviving spouse under settlement agreement were not eligible for marital deduction

Article Abstract:

In Estate of Carpenter, the Fourth Circuit agreed with the Tax Court that the marital deduction was not allowable to assets in a trust for which a spouse did not have general power of appointment, even though a later settlement gave the spouse that power. Though the court agreed that the assets in the trust were of a terminable interest, they found them to be unqualified for the marital deduction, due to the lack of power of appointment in the original trust.

Estate Planning, Estate tax, Estate taxes, Qualified terminable interest property, Qualified terminable interest property trusts

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Similar abstracts:

• Abstracts: No marital deduction for assets passing under settlement agreement. Transfer of assets to family partnership was not a taxable gift

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