Estate may not deduct payment of non-enforceable charitable pledges

Article Abstract:

A Tax Court Memorandum Opinion found in Estate of Levin that a charitable donation made by decedent's estate was not deductible for estate tax purposes because the donation was made pursuant to a non-enforceable promise. The promise made by the decedent was not enforceable because the decedent had not expected the charity to act in reliance on the promise and it did not rely on the pledge. The court applied Florida law to find that the charitable deduction was not a deductible claim under IRC section 2053(a)(3).

United States, Taxation, Estate tax, Estate taxes, Charitable contributions, Charitable donations

---

Payment enforcing reciprocal-will agreement wasn't deductible claim

Article Abstract:

The Tax Court, in Estate of Huntington, has denied an estate tax deduction for claims against an estate under a reciprocal-will agreement. The claim was deemed to be unsupported by adequate consideration. The tax deduction was claimed under IRC section 2053(a)(3) for debt satisfaction, but the court found the payments instead to be an inheritance.

Wills

---

No charitable deduction because amount of bequest not determinable

Article Abstract:

The Fourth Circuit has upheld the Tax Court's 1991 decision in Estate of Marine, in which a $2.1 million charitable deduction was denied because its amount could not easily be ascertained. The difficulty in valuing the deduction arose from the lack of a fixed standard to apply to the powers of disbursement given estate representatives.

Similar abstracts:

• Abstracts: Suite harmony; protecting client confidentiality while you share space. Bad references: beware of ethical hazards when nonlawyers offer referral fees
• Abstracts: Estate planning with respect to divorce. Estate planning specifically for the single parent. Planning strategies when a client's death is imminent
• Abstracts: Developments affecting contingent value rights, straddles, and redemptions. Recent developments address OID and dividends-received deduction
• Abstracts: Critics: forfeiture ruling certain to spur reform. Court hears 'innocent owner,' prison cases. Rulings by justices shift the tide on forfeitures
• Abstracts: A court's deliberations revealed; critics charge library's release of Marshall papers thwarted the justice's intent

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.