Post-death events considered in determining claim

Article Abstract:

The US Tax Court held in Estate of Smith that, where an estate has made a deduction based upon a disputed amount or upon a claim which is contested or not ripe, post-death events may be considered in determining IRC section 2053(a)(3) deductibility. In Smith, the deduction was greater than the actual amount paid out as a result of a later settlement agreement. The court held that the actual amount is the proper deduction. The court also held, for this specific case, section 1341(a) income tax relief must be reflected commensurately on the estate tax return.

Claims against decedents' estates

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Estate allowed deduction for care giver's services

Article Abstract:

Friends, neighbors, and family who provide care for the elderly and who become the primary legatee must consider the income tax consequences when considering an equitable compensation claim against the estate. Caregivers, however, should obtain a contract for their services to avoid complications in probate court or with the IRS. Estate of Stern represents the expected increase of such issues as the Baby Boomer generation reaches elderly ages.

Caregivers, Decedents' estates

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Estate tax deduction not altered by post-death events

Article Abstract:

The authors discuss the US Court of Appeals for the 10th Circuit's decision in Estate of McMorris, in which the court ruled that post-death events cannot be considered in tax deductions valuations for unpaid income taxes from an estate tax return.

United States, Taxation, Income tax, Valuation, Estate tax, Estate taxes, Stock redemption

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