Sixth Circuit fashions two-part test for deductibility of administration expenses
Article Abstract:
The US 6th Circuit Court of Appeals held in Estate of Millikin that the determination of IRC section 2053(a) deductible administration expenses requires the application of a two-part test taking into account federal and state standards. The court condoned the use of the IRS' 'actually and necessarily incurred' standard in addition to standards of the jurisdictions where estates are administered. The ruling is consistent with the majority of the US circuit courts addressing the issue.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1998
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Trustee's transfer of trust property was not a gift
Article Abstract:
The US 2d Circuit Court of Appeals in Saltzman held that no taxable gift resulted from a grantor-trustee's fiduciary breaching transfer of trust property over which he had no beneficial interest retention rights. The transfer for less than a full and adequate consideration was not a gift and the property remained in a constructive trust in the hands of the transferee. The court's strict construction of the trustee's duties was correct.
Publication Name: Estate Planning
Subject: Law
ISSN: 0094-1794
Year: 1998
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