§2056 — Bequests, etc., to surviving spouse
164 cases·42 followed·29 distinguished·2 questioned·4 criticized·1 limited·4 overruled·82 cited—26% support
Statute Text — 26 U.S.C. §2056
For purposes of the tax imposed by section 2001, the value of the taxable estate shall, except as limited by subsection (b), be determined by deducting from the value of the gross estate an amount equal to the value of any interest in property which passes or has passed from the decedent to his surviving spouse, but only to the extent that such interest is included in determining the value of the gross estate.
Where, on the lapse of time, on the occurrence of an event or contingency, or on the failure of an event or contingency to occur, an interest passing to the surviving spouse will terminate or fail, no deduction shall be allowed under this section with respect to such interest—
if an interest in such property passes or has passed (for less than an adequate and full consideration in money or money’s worth) from the decedent to any person other than such surviving spouse (or the estate of such spouse); and
if by reason of such passing such person (or his heirs or assigns) may possess or enjoy any part of such property after such termination or failure of the interest so passing to the surviving spouse;
if such interest is to be acquired for the surviving spouse, pursuant to directions of the decedent, by his executor or by the trustee of a trust.
and no deduction shall be allowed with respect to such interest (even if such deduction is not disallowed under subparagraphs (A) and (B))—
Where the assets (included in the decedent’s gross estate) out of which, or the proceeds of which, an interest passing to the surviving spouse may be satisfied include a particular asset or assets with respect to which no deduction would be allowed if such asset or assets passed from the decedent to such spouse, then the value of such interest passing to such spouse shall, for purposes of subsection (a), be reduced by the aggregate value of such particular assets.
For purposes of this subsection, an interest passing to the surviving spouse shall not be considered as an interest which will terminate or fail on the death of such spouse if—
such death will cause a termination or failure of such interest only if it occurs within a period not exceeding 6 months after the decedent’s death, or only if it occurs as a result of a common disaster resulting in the death of the decedent and the surviving spouse, or only if it occurs in the case of either such event; and
such termination or failure does not in fact occur.
In determining for purposes of subsection (a) the value of any interest in property passing to the surviving spouse for which a deduction is allowed by this section—
there shall be taken into account the effect which the tax imposed by section 2001, or any estate, succession, legacy, or inheritance tax, has on the net value to the surviving spouse of such interest; and
where such interest or property is encumbered in any manner, or where the surviving spouse incurs any obligation imposed by the decedent with respect to the passing of such interest, such encumbrance or obligation shall be taken into account in the same manner as if the amount of a gift to such spouse of such interest were being determined.
In the case of an interest in property passing from the decedent, if his surviving spouse is entitled for life to all the income from the entire interest, or all the income from a specific portion thereof, payable annually or at more frequent intervals, with power in the surviving spouse to appoint the entire interest, or such specific portion (exercisable in favor of such surviving spouse, or of the estate of such surviving spouse, or in favor of either, whether or not in each case the power is exercisable in favor of others), and with no power in any other person to appoint any part of the interest, or such specific portion, to any person other than the surviving spouse—
the interest or such portion thereof so passing shall, for purposes of subsection (a), be considered as passing to the surviving spouse, and
no part of the interest so passing shall, for purposes of paragraph (1)(A), be considered as passing to any person other than the surviving spouse.
This paragraph shall apply only if such power in the surviving spouse to appoint the entire interest, or such specific portion thereof, whether exercisable by will or during life, is exercisable by such spouse alone and in all events.
In the case of an interest in property passing from the decedent consisting of proceeds under a life insurance, endowment, or annuity contract, if under the terms of the contract such proceeds are payable in installments or are held by the insurer subject to an agreement to pay interest thereon (whether the proceeds, on the termination of any interest payments, are payable in a lump sum or in annual or more frequent installments), and such installment or interest payments are payable annually or at more frequent intervals, commencing not later than 13 months after the decedent’s death, and all amounts, or a specific portion of all such amounts, payable during the life of the surviving spouse are payable only to such spouse, and such spouse has the power to appoint all amounts, or such specific portion, payable under such contract (exercisable in favor of such surviving spouse, or of the estate of such surviving spouse, or in favor of either, whether or not in each case the power is exercisable in favor of others), with no power in any other person to appoint such amounts to any person other than the surviving spouse—
such amounts shall, for purposes of subsection (a), be considered as passing to the surviving spouse, and
no part of such amounts shall, for purposes of paragraph (1)(A), be considered as passing to any person other than the surviving spouse.
This paragraph shall apply only if, under the terms of the contract, such power in the surviving spouse to appoint such amounts, whether exercisable by will or during life, is exercisable by such spouse alone and in all events.
In the case of qualified terminable interest property—
for purposes of subsection (a), such property shall be treated as passing to the surviving spouse, and
for purposes of paragraph (1)(A), no part of such property shall be treated as passing to any person other than the surviving spouse.
For purposes of this paragraph—
The term “qualified terminable interest property” means property—
which passes from the decedent,
in which the surviving spouse has a qualifying income interest for life, and
to which an election under this paragraph applies.
The surviving spouse has a qualifying income interest for life if—
the surviving spouse is entitled to all the income from the property, payable annually or at more frequent intervals, or has a usufruct interest for life in the property, and
no person has a power to appoint any part of the property to any person other than the surviving spouse.
The term “property” includes an interest in property.
A specific portion of property shall be treated as separate property.
An election under this paragraph with respect to any property shall be made by the executor on the return of tax imposed by section 2001. Such an election, once made, shall be irrevocable.
Subclause (II) shall not apply to a power exercisable only at or after the death of the surviving spouse. To the extent provided in regulations, an annuity shall be treated in a manner similar to an income interest in property (regardless of whether the property from which the annuity is payable can be separately identified).
In the case of an annuity included in the gross estate of the decedent under section 2039 (or, in the case of an interest in an annuity arising under the community property laws of a State, included in the gross estate of the decedent under section 2033) where only the surviving spouse has the right to receive payments before the death of such surviving spouse—
the interest of such surviving spouse shall be treated as a qualifying income interest for life, and
the executor shall be treated as having made an election under this subsection with respect to such annuity unless the executor otherwise elects on the return of tax imposed by section 2001.
An election under clause (ii), once made, shall be irrevocable.
If the surviving spouse of the decedent is the only beneficiary of a qualified charitable remainder trust who is not a charitable beneficiary nor an ESOP beneficiary, paragraph (1) shall not apply to any interest in such trust which passes or has passed from the decedent to such surviving spouse.
For purposes of subparagraph (A)—
The term “charitable beneficiary” means any beneficiary which is an organization described in section 170(c).
The term “ESOP beneficiary” means any beneficiary which is an employee stock ownership plan (as defined in section 4975(e)(7)) that holds a remainder interest in qualified employer securities (as defined in section 664(g)(4)) to be transferred to such plan in a qualified gratuitous transfer (as defined in section 664(g)(1)).
The term “qualified charitable remainder trust” means a charitable remainder annuity trust or a charitable remainder unitrust (described in section 664).
Nothing in this section or any other provision of this chapter shall allow the value of any interest in property to be deducted under this chapter more than once with respect to the same decedent.
For purposes of paragraphs (5), (6), and (7)(B)(iv), the term “specific portion” only includes a portion determined on a fractional or percentage basis.
For purposes of this section, an interest in property shall be considered as passing from the decedent to any person if and only if—
such interest is bequeathed or devised to such person by the decedent;
such interest is inherited by such person from the decedent;
such interest is the dower or curtesy interest (or statutory interest in lieu thereof) of such person as surviving spouse of the decedent;
such interest has been transferred to such person by the decedent at any time;
such interest was, at the time of the decedent’s death, held by such person and the decedent (or by them and any other person) in joint ownership with right of survivorship;
the decedent had a power (either alone or in conjunction with any person) to appoint such interest and if he appoints or has appointed such interest to such person, or if such person takes such interest in default on the release or nonexercise of such power; or
such interest consists of proceeds of insurance on the life of the decedent receivable by such person.
Except as provided in paragraph (5) or (6) of subsection (b), where at the time of the decedent’s death it is not possible to ascertain the particular person or persons to whom an interest in property may pass from the decedent, such interest shall, for purposes of subparagraphs (A) and (B) of subsection (b)(1), be considered as passing from the decedent to a person other than the surviving spouse.
Except as provided in paragraph (2), if the surviving spouse of the decedent is not a citizen of the United States—
no deduction shall be allowed under subsection (a), and
section 2040(b) shall not apply.
Paragraph (1) shall not apply to any property passing to the surviving spouse in a qualified domestic trust.
If any property passes from the decedent to the surviving spouse of the decedent, for purposes of subparagraph (A), such property shall be treated as passing to such spouse in a qualified domestic trust if—
such property is transferred to such a trust before the date on which the return of the tax imposed by this chapter is made, or
such property is irrevocably assigned to such a trust under an irrevocable assignment made on or before such date which is enforceable under local law.
If—
property passes to the surviving spouse of the decedent (hereinafter in this paragraph referred to as the “first decedent”),
without regard to this subsection, a deduction would be allowable under subsection (a) with respect to such property, and
such surviving spouse dies and the estate of such surviving spouse is subject to the tax imposed by this chapter,
the Federal estate tax paid (or treated as paid under section 2056A(b)(7)) by the first decedent with respect to such property shall be allowed as a credit under section 2013 to the estate of such surviving spouse and the amount of such credit shall be determined under such section without regard to when the first decedent died and without regard to subsection (d)(3) of such section.
Paragraph (1) shall not apply if—
the surviving spouse of the decedent becomes a citizen of the United States before the day on which the return of the tax imposed by this chapter is made, and
such spouse was a resident of the United States at all times after the date of the death of the decedent and before becoming a citizen of the United States.
In the case of any property with respect to which a deduction would be allowable under subsection (a) but for this subsection, the determination of whether a trust is a qualified domestic trust shall be made—
as of the date on which the return of the tax imposed by this chapter is made, or
if a judicial proceeding is commenced on or before the due date (determined with regard to extensions) for filing such return to change such trust into a trust which is a qualified domestic trust, as of the time when the changes pursuant to such proceeding are made.
If a judicial proceeding described in subparagraph (A)(ii) is commenced with respect to any trust, the period for assessing any deficiency of tax attributable to any failure of such trust to be a qualified domestic trust shall not expire before the date 1 year after the date on which the Secretary is notified that the trust has been changed pursuant to such judicial proceeding or that such proceeding has been terminated.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §20.2056-0 Table of contents
- Treas. Reg. §Treas. Reg. §20.2056-0(a) Disclaimers by a surviving spouse.
- Treas. Reg. §Treas. Reg. §20.2056-0(b) Disclaimer by a person other than a surviving spouse.
- Treas. Reg. §Treas. Reg. §20.2056-0(c) Effect of election by surviving spouse.
- Treas. Reg. §Treas. Reg. §20.2056-0(d) Will contests.
- Treas. Reg. §Treas. Reg. §20.2056-0(e) Survivorship.
- Treas. Reg. §Treas. Reg. §20.2056-0(f) Joint and survivor annuities.
- Treas. Reg. §Treas. Reg. §20.2056-0(g) Application of local law.
- Treas. Reg. §Treas. Reg. §20.2056-0(h) Examples.
- Treas. Reg. §Treas. Reg. §20.2056-0(j) Existence of power in another.
164 Citing Cases
- 18 - CHABOT, J., concurring in the result: I do not agree with the majority's determination to overrule this Court's opinions in Estate of Robertson v.
The regulation became effective after Semone’s death and therefore does not apply here.
- 27 - [*27] inclusion ofthe LLC units in decedent's gross estate, unlike any additional gift tax payable by the estate, will be apportioned to the niechs as the recipients of the LLC units underNew Jersey's equitable apportionment s atute, discussed infra, thereby increasing the marital deduction for the balance ofdecedent's estate, which goes to Bernice. See sec. 2056(b)(4)(A).
2056 provides that in determining the value of decedent's gross estate, there is allowed a deduction for the value of any interest that is included in gross estate and that passes from the decedent to the surviving spouse. Under sec. 1014, the surviving spouse has a step-up in basis for the portion of the joint tenancy included in decedent's gross estate. On the other hand, the marital deduction is inapplicable when the surviving spouse is not a citizen of the United States.
The estate argues that the facts of Estate of Tingley are distinguishable from the facts at hand.
Held: Assuming there was a transfer of property under I.R.C. § 2519 when the marital trusts were terminated, E is not liable for gift tax under I.R.C. § 2501 because S received back the interests in property that she was treated as holding and transferring under I.R.C. §§ 2056(b)(7)(A) and 2519 and made no gratuitous transfer, as required by I.R.C.
We hold that the estate may not increase the marital deduction by the amount ofpostdeath income generated by assets passing to Jewell.
Following a trial on these issues, we hold that decedent's estate is liable for neither of these items .
taxes, “which the value of such part [i.e., the part of the decedent’s gross estate which at the time of his death is situated in the United States] bears to the value of his entire gross estate, wherever situated.” If the surviving spouse is not a citizen of the United States, a marital deduction pursuant to section 2056 is allowed only where the subject property passes or is treated as passing to the surviving spouse in a qualified domestic trust.
The 1981 amendments to § 2056 made a number of changes, each of which expanded the scope of the marital deduction.
Marital Deduction Under Section 2056 Section 2056 provides for a deduction from the gross estate of a decedent for the value of property that passes from the decedent to the surviving spouse.
288, 294 (1971) (references to the marital deduction and - 19 - citations to section 2056 clearly establish that the trust’s purpose was to secure the marital deduction).
ll Rule references are to the Tax Court Rules of Practice and Procedure. The issue to be decided in the instant case is whether the interest received by decedent’s surviving spouse in certain property qualifies for the marital deduction pursuant to section 2056. Background The parties submitted the instant case, fully stipulated, without trial, pursuant to Rule 122. The parties’ stipulations of facts are hereby incorporated by this reference and are found as facts in the instant case. Decedent w
applied due to the interplay of the marital deduction and the step-up in basis. While one-half of the value of the joint tenancy is included in the gross estate, there is an accompanying marital deduction in the same amount. The marital deduction in sec. 2056 provides that in determining the value of decedent’s gross estate, there is allowed a deduction for the value of any interest that is included in gross estate and that passes from the decedent to the surviving spouse. Under sec. 1014, the s
a marital deduction of $920,607. The estate claimed the marital deduction with respect to the assets passing to Trust A under the agreement. Discussion We must decide whether the property passing to Trust A qualifies for the marital deduction under section 2056. Section 2056 provides in part: SEC. 2056. BEQUESTS, ETC., TO SURVIVING SPOUSE. (a) Allowance of Marital Deduction. — * * * the value of the taxable estate shall, except as limited by subsection (b), be determined by deducting from the v
By its terms, section 2519(a) applies to “any disposition of all or part of a qualifying income interest in property to which this section applies.” In the present cases, the property to which section 2519 applies is the property for which Clotilde’s estate was allowed a deduction “under section 2056 by reason of subsection (b)(7) thereof.” § 2519(b)(1).
2007-371 (Estate of Lee I), we held that SERE .DEC 2 3.2009, 4 -2- the Estate of Kwang Lee (decedent's estate) was not entitled to' claim a marital deduction under section 2056 because Kwang Lee (decedent) died after his wife, Kyoung Lee (Ms .
elating to expenses, indebtedness, and taxes, “which the value of such part [i.e., the part of the decedent’s gross estate which at the time of his death is situated in the United States] bears to the value of his entire gross estate, wherever situated.” If the surviving spouse is not a citizen of the United States, a marital deduction pursuant to section 2056 is allowed only where the subject property passes or is treated as passing to the surviving spouse in a qualified domestic trust.
We apply section 2056 as in effect at Mr.
Section 2056 does not specify how taxes are to be allocated among the interests comprising the estate. Rather, State law governs the manner in which a decedent's Federal estate tax burden is allocated among estate assets. Riggs v. Del Drago, 317 U.S. 95, 100 (1942); Estate of Wycoff v. Commissioner, 59 T.C. 617, 622 - 5 - (1973), affd. 506 F.2d 11
For this purpose, the "marital deduction" is defined as "the federal estate tax deduction allowed for - 31 - transfers under Section 2056 of the Internal Revenue Code".
payments called for in the codicil, namely the sum of $3,750.00 per month for a period of ten years, have not been made, petitioner no longer contends that the payments, had they been made, would have qualified for the marital deduction pursuant to I.R.C. section 2056. OPINION The issues in this case revolve around the decedent's cancellation of her daughter's debt and the provisions of decedent's will and codicil relating to the agency stock and the monthly payments. The language in the will c
§ 2056; see also Estate of Anenberg v. Commissioner, 162 T.C. 199, 206 (2024) (“The marital deduction does 6 [*6] not eliminate or reduce the tax on the transfer of marital assets out of the marital unit, but instead permits deferral until the death of or gift by the surviving spouse.”). B. Unified Credit 1. General Structure Section 2010 provides
ue on those gifts. P has filed three motions for partial summaryjudgment seeking determinations that (1) the gift tax owed at D's death on his gifts to Ns is deductible under I.R.C. sec. 2053, (2) the estate is entitled to a marital deduction under I.R.C. sec. 2056 equal to the value ofD's nonprobate property that W received or to which she succeeded that, under applicable State law, was exempt from D's debts and the expenses ofthe estate, SERVED Aug 22 2017 - 2 - and (3) any Federal estate tax
* * clear [.]"). The same result obtains even ifMr. Backemeyer's estate did not actually owe any amount payable as estate tax through the operation ofthe unified credit, see sec. 2010, or the marital deduction for bequests to a surviving spouse, see sec. 2056, so long as his estate was subject to the estate tax regime. Furthermore, we note that the Supreme Court's approach in Bliss Dairy, 460 U.S. at 383 n.15, calls for a "line between merely unexpected events and inconsistent events." Whereas l
ecessary to reduce the estate taxes tp *This Opinion supplements our previously filed opinion Estate ofTurner v. Commissioner, T.C. Memo. 2011-209. SERVED MAR 2 9 2012 - 2 - zero, and, because ofthe application ofthe marital deduction urder I.R.C..sec. 2056, the estate has no estate tax deficiency. Held: D's estate is not entitled to claim the marital deduction with respect to the FLP interest or the assets attributable to the LP interest that D gave as gifts during his lifetime. Charles E. Hodg
The parties agree that the estate is·entitled to a·marital deduchion under section 2056 (a) with respect to decedent'.
limited partnership interest as gifts during his lifetime, any property interest in either the partnership interest transferred to persons other than Jewell or the assets underlying that interest could not and did not pass to Jewell for purposes of section 2056. Therefore, the estate may not recalculate the marital deduction to include the transferred partnership interest or the underlying assets. In reaching our conclusion, we also take into account the place of the marital deduction in the ov
Share B was to receive property as'follows : (a) Share B shall consist of,property of the-trust fund in an amount equal to the maximum marital deduction as finally determined for federal estate tax` purposes which is allowable under Section 2056 of the Internal Revenue Code * * * reduced-by the aggregate value as finally determined f
alue of Mrs . Shurtz's partnership interest in Doulos L .P ., and not the fair 27 - market value of the contributed property, is includable in the fair market value of the gross estate, the marital deduction to { which the estate is entitled under section 2056 is . to be computed according to the value of the partnership interest that actually passed to Reverend Shurtz . 'See Estate of Black v . Commissioner, supra at (slip op . at 54) . IV . Conclusion Because the values of the assets transferr
appointment over share A, and if she failed to exercise it, share A would follow the disposition of share B upon her death. With respect to share B, the settlors intended that share B or a portion thereof would qualify for a marital deduction under section 2056. Share B was to receive property as follows: (a) Share B shall consist of property of the trust fund in an amount equal to the maximum marital deduction as finally determined for federal estate tax purposes which is allowable under Secti
Black's estate is entitled under section 2056 should be computed according to the value of the partnership interest that actually passed to Mrs .
Black's estate is entitled under section 2056 should be computed according to the value of the partnership interest that actually passed to Mrs .
Section 2056 (b) (7) (A) creates an exception to this exception for qualified terminable interest property, treating it deductible at the first spouse's death, but includable in the surviving spouse's estate. (The section references in this note and throughout the opinion are to the Internal Revenue Code. Any Rule references are to the Tax Court's
edent's WCB Holdings class B membership units on the alternate valuation date was $101,573,229,13 as calculated below. [$23.14 - ($23.14 x .05)]= $21.98 x 4,621,166 = $101,573,229 ¹³We note that decedent's estate may be entitled to a deduction under sec. 2056 for his inter vivos gift of WCB Holdings class B membership units to Cynthia Bongard that was pulled back into his gross estate under sec. 2035(a). - 63 - To reflect the foregoing and give effect to the parties' stipulations, Decision will
aws 1996, ch. 314, sec. 8, eff. Jan. 1, 1997, replaced by Minn. Stat. Ann. sec. 501B.151, effective Jan. 1, 1997 (West 2002 & Supp. 2004); Minn. Stat. Ann. sec. 501B.60 (West 1990). We note that decedent’s estate may be entitled to a deduction under sec. 2056 for his inter vivos gift of WCB Holdings class B membership units to Cynthia Bongard that was pulled back into his gross estate under sec. 2035(a). --- CONCURRENCE --- Laro, J., concurring in result: I concur only because I am uncomfortable
ch reserve”); sec. 7518(g)(5)(C) (“treated as remaining in a capital construction fund at the close of any taxable year”); sec. 1368(c)(3) (“Treatment of remainder.--Any portion of the distribution remaining after the application of paragraph (2)”); sec. 2056A(b)(1)(B), (10)(A), (“property remaining in a qualified domestic trust on the date of the death”); sec. 5143(d)(4) (“the partner or partners remaining after death or withdrawal of a member”); sec. 6342(b) (“Any surplus proceeds remaining af
5 This position is reminiscent of previous attempts by respondent to impose a fractional, or percentile, share rule in the marital deduction context–-a position that was consistently rejected by the courts and not implemented until Congress amended sec. 2056 to conform with respondent’s position. See sec. 2056(b)(5), (7) and (10); Northeastern Pa. Natl. Bank & Trust Co. v. United States, 387 U.S. 213 (1967); James v. United States, 366 U.S. 213 (1961); Estate of Alexander v. Commissioner, 82 T.
. This position is reminiscent of previous attempts by respondent to impose a fractional, or percentile, share rule in the marital deduction context — a position that was consistently rejected by the courts and not implemented until Congress amended sec. 2056 to conform with respondent’s position. See sec. 2056(b)(5), (7), (10); Northeastern Pa. Natl. Bank & Trust Co. v. United States, 387 U.S. 213 (1967); James v. United States, 366 U.S. 213 (1961); Estate of Alexander v. Commissioner, 82 T.C.
In addition, respondent has stipulated that the estate would be entitled to an increased marital deduction under section 2056 if the value of interests in the True companies that were sold to Jean True was determined to be greater than the purchase prices under the buy-sell agreements.
In addition, respondent has stipulated that the estate would be entitled to an increased marital deduction under section 2056 if the value of interests in the True companies that were sold to Jean True was determined to be greater than the purchase prices under the buy-sell agreements.
owned by decedent on the valuation date; (3) the amount of the section 2056 marital deduction to be allowed the estate of decedent (petitioner); and (4) whether petitioner is liable for the section 6662 penalties as determined by respondent.
Such a construction of the will would put John's estate's marital deduction in jeopardy, because shares eligible for the section 2056 marital deduction on the basis of the valuation used on the return would--if a different, lower - 20 - valuation were used for funding the unified credit bequest--be shifted from the surviving spouse to the unified credit bequest beneficiary.
ement. The community property and separate property of decedent were placed in the survivor's trust, while all of Joaquim's community property was placed in the marital trust. - 3 - The marital trust allowed for a QTIP election by the trustee under section 2056. Because the QTIP marital trust met the test in section 2056(b)(7), respondent allowed a marital deduction in the Estate of Joaquim Lopes for the value of the property interests passing into that trust. After Joaquim's death, decedent mad
owned by decedent on the valuation date; (3) the amount of the section 2056 marital deduction to be allowed the estate of decedent (petitioner); and (4) whether petitioner is liable for the section 6662 penalties as determined by respondent.
Section 2056 allows a deduction for certain bequests to a surviving spouse. Nowhere in the Code or regulations thereunder does it say that an estate's underpayment is based solely on deductions that appear on its estate tax return. Respondent reaches this result by analogy to a line of cases which hold that a net operating loss (NOL) carryback will
Section 2056 allows a deduction for certain bequests to a surviving spouse. Nowhere does the Code or regulations thereunder say that an estate’s underpayment is based solely on deductions that appear on its estate tax return. Respondent reaches this result by analogy to a line of cases which hold that a net operating loss (nol) carryback will not r
(b) Property To Which This Section Applies.--This section applies to any property if-- (1) a deduction was allowed with respect to the transfer of such property to the decedent-- (A) under section 2056 by reason of subsection (b)(7) thereof, or (B) under section 2523 by reason of subsection (f) thereof, and (2) section 2519 (relating to dispositions of certain life estates) did not apply with respect to a disposition by the decedent of part (continued...) - 9 - surviving spouse the value of prop
— This section applies to any property if— (1) a deduction was allowed with respect to the transfer of such property to the decedent— (A) under section 2056 by reason of subsection (b)(7) thereof, or (B) under section 2523 by reason of subsection (f) thereof, and (2) section 2519 (relating to dispositions of certain life estates) did not apply with respect to a disposition by the decedent of part or all of such property.
ts are substantially the same as those of the Uniform Principal and Income Act. - 9 - In sum, since the personal representative's fee is to be paid from the residue, which is principal of the estate, such payment reduces the marital deduction under section 2056. See Estate of Fine v. Commissioner, 90 T.C. 1068 (1988), affd. without published opinion 885 F.2d 879 (11th Cir. 1989) (marital deduction is reduced where administration expenses are paid from the residuary estate under the terms of the