Second Edition

Keith Schiller, Esq. Stock No. L600

ISBN 978-1-61746-600-7

Corrected Pages (See Inside Cover for Explanation)

Art Estate Tax Return

ofthe

October 2014

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Estate Planning At The Movies®

Art Estate Tax Returnofthe

Second Edition

Keith Schiller, Esq.Foreword by John T. Schooler, Esq.

Arlington, VA

Corrected Pages

Estate Planning At The Movies® — Art of the Estate Tax ReturnSecond Edition, by Keith Schiller, Esq.

Director of Editorial and Project ManagerLauren E. Leonard

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Stock No. L600

Table of ContentsCH.6 Adjusted Taxable Gifts: Costume Design

6.8.7

6.10

Pre-Death IDGT Buy-Back

Corrected Page ..............................................................................................................6-37

Sales or Gifts to Intentionally Defective Grantor Trusts

Corrected Page ..............................................................................................................6-40

CH.7A Portability Elections: A New Era in Estate Planning and Compliance

7A.8.4.6 Pre-2002 Gifts and Impact on the DSUEA

Corrected Page ...................... ....................................................................................7A-31

CH.18 Schedule J: Funeral and Administrative Expenses

18.6 Portability Elections and Schedule J Deductions

Corrected Page .............................................................................................................18-34

Index of TermsCorrected Pages .................................................................................................................O-7 to O-26

Index of CasesCorrected Pages ...............................................................................................................O-27 to O-30

Index of MoviesCorrected Page ..............................................................................................................................O-31

Indexes (all included in their entirety)

OVERTURE: CHAPTER 6 — ADJUSTED TAXABLE GIFTS 6-37

may not be the case. If proportionality applied, adjusted taxable gifts would be reduced by $4,750 (commensurate with the 95% inclusion ratio recaptured in the gross estate under Reg. §20.2036-1(c). BNA suggests a similar result, though couching its comment as the result that should be “presumably” reached.138

Two real-life events have led the author to understand this may not be the case. First, in a disputed case in which retained interest treatment was determined with respect to a part of the gift, the IRS made a complete reduction for the value of the gift in the calculation of adjusted taxable gifts. Thus, a zero value was assigned in line 4 of the Tax Computation even through a portion of the gift was not included under Code §2036. Second, the author had an informal discussion with an IRS Group Manager regarding treatment if only a portion of a gift (such as a GRAT) returned to the gross estate and what impact that would have on line 4. Consistent with the experience in the first example, the author was informed that a full reduction on line 4 is made for the gift tax value reported if any part of the gift is returned to the gross estate. The author is not aware of particular authority to support this conclusion.

While not directly on point to line 4, in the event that a gift on which gift tax was paid is brought back into the gross estate, three actions arise: (1) the gross estate is valued at the date of death value; (2) the amount of adjusted taxable gifts is reduced for the value of the gift at the time of the gift; and, (3) no reduction is made for gift taxes paid (line 7) as a result of the estate tax inclusion. Of course, the gift tax credit will be based on the estate tax rate in the year of death.139

6.8.6 Payment of Income Tax by the GrantorThe GRAT should be established as a wholly grantor trust (i.e., both as to income and principal)

for income tax purposes, at least during the retained period. The grantor will be receiving annuity payments anyway. Several income tax benefits can arise from treatment as a grantor trust:

• The grantor will be income taxed on the income of the trust. The payment of the income tax bythe grantor is not treated as a retained interest.140

• The transfer of appreciated property to the grantor in satisfaction of the annuity payment is nota recognition event for income tax. There is no taxable sale provided the trust is income taxedto the grantor with respect to sales or exchanges.141

• The transfer of appreciated property to the trust in exchange for an annuity payment is not asale.142

• The GRAT can own S corporation stock because the grantor is treated as the owner.143 Becausethe GRAT does not necessarily pay all net income to the grantor, the grantor-trust status avoidsthe use of an electing small business trust (ESBT).

Grantor-trust status can continue after the retained term. If the donor has sufficient resources topay income tax, the remainder trusts established under the GRAT can continue to receive distributions and capital gains while the grantor pays the income tax on a gift-tax free basis.144

6.8.7 Pre-Death IDGT Buy-Back

Income tax basis preservation has become more vital to clients with the increase of income tax rates. The benefit of gifting is to remove growth. Gifts also impose carry-over basis. Even if the fair market value and basis are close at the time of the gift, post-gift appreciation and depreciation deductions may expand the gap. If the basis starts out low, the income tax trap is built in.

Prior to the death of the grantor, the grantor can re-acquire the assets in the IDGT so that the grantor is the owner at the time of death. The IDGT would then own the cash and/or promissory

After the retained period ends, the GRAT functions as a trust for the benefit of remainder beneficiaries. The trust may be traditional (i.e., income tax arises at the trust level) or grantor (donor is deemed the taxpayer). The problem is that donees receive assets gift which may have low income tax basis on the termination of the GRAT term. This carryover-basis problem encourages the use of IDGT treatment after the retained period terminates. (See §§6.8.8 and 15.11, infra, for discussion of IDGTs.)

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURN6-40

Added Caution: Code §2036 issues may lurk on death with respect to the entity or interestssubject to the gift or sale. The encouragement to file a gift tax return with adequate disclosure thus becomes all the stronger. The absence of a gift, evident by an appropriate gift tax return that is unchanged, can sever arguments that the consideration received cut the Code §2036 strings between the decedent and his or her estate with the underlying assets transferred. While post-sale facts may raise issues, this can be a powerful statutory defense to hold in the event of an estate tax challenge.

As with so many issues raised in this book, gift tax returns filed to start the statute of limitations present questions of balancing. While experienced practitioners can vary in their views, and unique facts can suggest different treatment, the author discourages the making of significant family transfers, even when no gift is intended, without filing a fat gift tax return with adequate disclosure.

Having taught estate tax and gift tax courses for tax professionals for more than 20 years, the author appreciates that clients are resistant to filing gift tax returns that they believe may be unnecessary. Many cannot understand why a gift tax return is recommended for a non-gift. On its face, there is a bizarre quality to the advice. Moreover, the client pays for the return yet may not see the benefit of the statute of limitations expiring unless there is an audit of a later-year gift tax return. As noted above, gift tax audits may increase with new IRS estate tax attorney hiring and reduced estate tax return filings.148

Practice Comment: If the client will not accept your recommendation to file the gift taxreturn, then be certain to have written proof of your recommendation and the reasoning. Also, the more transactions that exist, the more important will be the filing of gift tax returns to avoid a buildup of issues. File documentation or letters are encouraged for each year to renew the recommendation.

6.10 Sales or Gifts to Intentionally Defective Grantor Trusts

§15.11, infra, discusses intentionally defective grantor trusts (IDGTs). This strategy is commonlyused by the wealthiest individuals, creating an opportunity to transfer great wealth with flexibility to loved ones. The expanded use of formula clauses with gifts and sales has increased the use of IDGTs when compared to GRATs for some estate planners and clients who wish to lower the level of risk with gift planning. See §6.7.5 and §6.8, supra, respectively, for discussion of formula clauses and GRATs. Gifts or sales to skip beneficiaries cannot be efficiently made to GRATs under GST law. (See §6.8.8, supra.) The Obama administration has announced on several occasions its desire to significantly limit the effectiveness of IDGTs as a strategy to increase estate tax to the extent taxable income was avoided or includes the value of grantor trusts in the gross estate. Thus, IDGTs are simultaneously targeted by the IRS and favored by wealthy political campaign contributors.

6.11 Self-Canceling Installment Notes A Self-Canceling Installment Note (SCIN) offers the benefit of removing the promissory note

from the gross estate of the parent/taxpayer who sold assets to loved ones, or more likely a trust for the benefit of loved ones. The trust is typically an IDGT so that the sale is not a recognition event for income tax purposes. The grantor, however, must be willing to pay income taxes on income received by the IDGT for reasons discussed above. The SCIN works if the taxpayer does not live to life expectancy. If the taxpayer is too ill, and the probability that he or she will live one year is less than 50%, the mortality tables cannot be used.149

MAIN STREET: CHAPTER 7A — PORTABILITY ELECTIONS 7A-31

is incorrectly asserted, the estate will find out by the time a surviving spouse’s gift tax return or estate tax return is audited. If the estate needs to learn sooner (such as materiality for gift planning decisions), a ruling request can be submitted. However, Rev. Proc. 2013-17 provides excellent and extensive assistance when the marriage is respected under state law. Currently, practitioners in many states do not know whether an existing marriage under a state Defense of Marriage Act (DOMA) statute will be held valid and if the state law will be ineffective as a result of a later court decision.

If the estate tax return has already been filed, seek relief from Treasury to file a late portability election. Relief in situations where the estate qualifies for simplified reporting is either automatic under Rev. Proc. 2014-18 or can be considered under Reg. §§301.9100-2 or 301.9100-3.

As to this second purpose for Rev. Proc. 2014-18, the IRS observes that under Code §6511(a) a taxpayer’s claim for refund of an overpayment of tax must be filed within three years from the date of filing the tax return, or within two years from the date of payment of the tax, whichever period expires later. Rev. Proc. 2014-18 does not change this statutory deadline. It provides relief to file an earlier claim even though the estate tax return for the surviving spouse is not yet due. Thus, to recover estate tax paid, the surviving spouse’s executor must file a claim for refund within three years of the date of the filing of the deceased spouse’s estate tax return even though a Form 706 to elect portability has not been filed on behalf of the deceased spouse. Such a claim filed in anticipation of the filing of the Form 706 by the deceased spouse’s executor will be considered a protective claim for credit or refund of tax. Accordingly, as long as the claim of the surviving spouse’s estate for credit or refund of tax is filed by October 14, 2014, the IRS will consider and process that claim for credit or refund of tax after the deceased spouse’s estate is considered to have elected portability pursuant to this revenue procedure.

7A.8.4.6 Pre-2002 Gifts and Impact on the DSUEAThe gift tax credit against estate tax appears on line 7 of the Tax Computation on page 1 of

Form 706. This credit is reviewed in §6.2.4, supra. In order to determine the gift tax credit, the practitioner will need a copy of all gift tax returns filed by the decedent. This will assist with three steps in the completion of lines 4 and 7 of the Tax Computation, namely: (1) reconciliation of taxable gifts, (2) computation of adjusted taxable gifts, and (3) computation of the gift tax credit. The line 7 entry is supported by a worksheet provided with the instructions to Form 706. The worksheet must be attached to the Form 706 when filed.

As part of the foregoing process, the practitioner is directed to make reasonable effort to discover any gifts in excess of the annual exclusion amount made by or on behalf of the decedent (such as through a power of attorney that effectively allows gifts to be made) for which no gift tax return has been filed.

Gift tax rates less than 40% apply to gifts made with a taxable value of less than $1 million. In 2002, the gift tax exemption was increased to $1 million. The comments that follow apply to the computation of the DSUEA when taxable gifts were made after 1976 and before 2002 in amounts that exceeded the gift tax exclusion allowed for the year of the gift on which gift tax was paid. §6.2.4, supra, includes a chart of the gift tax exemption equivalents between 1977 and 2001.

The author acknowledges the direct or indirect contributions of Lester B. Law, Esq., Vincent F. Lackner, Jr., Esq. and Michael Jones, CPA to the discussion that follows in the context of the computation of the DSUEA.87

The hidden problem (or opportunity) with taxable gifts made before 2002 in the DSUEA arises because gifts made after the first 2002 taxable gift was made will be pushed up to the higher bracket even though some of the exemption applicable to lower rates was never used. The following is an example adopted by Mr. Lackner in discussion with Mr. Jones.88

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURN18-34

of DSUEA from Blake.) The election to deduct the transmission expenses on the income tax return will create a taxable estate of $50,000 after the marital deduction. That sum will apply against the DSUEA from Blae, leaving Jane with a DSUEA of $5.34 million available to Jim.

Example 2: The conditions are the same as in Example 1, except that Jane has no DSUEAfrom Blake. The result will be a taxable estate of $50,000 and a DSUEA of $5,290,000 available to Jim.

2. To the extent that any amount is deducted on Schedules J and/or K, assets of at least that aggregate value must be valued in the traditional manner when estate tax returns are filed under the simplified reporting regime. See, §7A.9, supra, for discussion of the simplified method of valuation.) This result follows because simplified reporting is allowed only for transfers that receive the estate tax marital deduction or charitable deduction. Deductions under Schedules J and K are not of that variety. Other rules apply as well with simplified reporting. Application of the basic principle in this point, however, will help the preparer avoid a clear mistake in filing the estate tax return.

18.7 Mortality and the Code §2053 RegulationsThe glamour and focus of estate tax dispute may reside generally with issues of valuation and

the gross estate, yet issues and controversies pertaining to administrative-expense deductions create their own world of complexities and nuance. The regulations adopted in October 2009 have added some level of confusion to reporting these deductions but none to the level of that experienced with the deductions of debts and liabilities, which is the subject of the upcoming Chapter 19, infra.

ENDNOTES1. IRS Notice 2009-84; T.D. 9468, I.R.B. 2009-44.

2. The Stepford Wives. Fadsin Cinema Associates © 1975. All rights reserved. Based on the 1972 novel by IraLevin. The film was remade under the same title: Paramount Pictures © 2004. All rights reserved.

3. Adapting the use of this word for a female droid from Austin Powers: International Man of Mystery.Capella International; Eric’s Boy; Juno Pix; et al. © 1997. All rights reserved.

4. Jacobs. v. Comr., 34 F.2d 233 (8th Cir. 1929), cert. denied, 280 U.S. 603 (1929).

5. See, the James Bond Series. First in the series is Dr. No. Eon Productions © 1962. All rights reserved. Fromthe books of Sir Ian Fleming.

6. Code §6511.

7. See, Reg. §20.2053-1(b) and-1(d)(5).

8. Chevron U.S.A., Inc. v. Natural Resources Defense Council, 467 U.S. 837 (1984).

9. Mayo Foundation for Medical Education & Research v. U.S., 131 S. Ct. 704 (2011).

10. The Loved One. Filmways Pictures © 1965. All rights reserved. The film adapts the novel of the same titleby Evelyn Waugh, Little, Brown & Co/MA © 1947. All rights reserved.

11. For additional information about live presentations of Estate Planning At The Movies®, visit www.EstatePlanningAtTheMovies.com. All films are depicted with fair use in a positive light for educationalpurposes. The purpose of these presentations is to encourage the public to consider difficult estateplanning issues and to make these considerations more understandable through their relationship tomotion picture experiences.

12. Reg. §20.2033-1(b).

13. Reg. §20.2053-2.

THE OVATION O-7

Abatement Late filing penalty 5.6Late payment penalty 5.6

Abraham, MelBlack Scholes Model 10.13A FID 8.16Highest-and-best use principle 8.4Introduction 8.4Irrelevancy of non-assumable debt to FID

8.16 Tiered discounts 14.15

Absorption discounts (See Discounts, blockage discounts)

AccountantsAdministrative expense deduction 18.3,

18.3.1, 18.3.2, 18.3.3 (in-depth), 18.3.4 (business expense), 18.5, 19.2.4, Appraiser, relations with 8.2, 8.8

Attorney, relations with 6.5, 8.2, 9.10, 14.6 (FLPS and FLLCs), 25.8.6 (GST review), 25.8.8 (GST exemption allocations), 26.8 (conservation easement team)

Buy-sell agreement issue spotting 10.14, 10.15Capital accountant maintenance 14.6Charitable deduction interplay 20.3Deduction 18.3.3Extension of time to file or pay (See,

Extension of Time to File and/or Pay) 5.5, 5.6

Financial statements for FLPs and FLLCs 14.6FLP defense planning 14.6, 14.14Form 1040 versus Form 706 experience 1.1,

4.3Gift tax history 6.4, 25.8.6 (including GST

issues)GST action steps for late allocation of GST

exemption 25.8.6GST highlight list 25.2GST tax planning, separate shares 25.2, 25.7 Late filing or payment penalties 5.6 Marital deduction transmission expense 21.15 Not subject to claims 20.3Post-death facts and accountant fee deduction

19.2.4Preparer penalties (See, Preparer penalties)Retained interest avoidance 14.6Section 2703 pressures 6.5.1 (loan conditions),

10.15Separate shares for GST tax planning 25.2,

25.7Temptations 1.1Transmission expense 7A.2, 7A.8.4.6, 7A.9,

21.15Valuation issue spotting 8.1

Adequate disclosure (See Gift tax returns)

Adjusted gross estateDebt, recourse and non-recourse 8.16, 19.1Gift included in gross estate 15.7Portability (See, Deceased Spousal Unused

Exclusion Amount)Qualified family owned business election 8.16Section 6166 deferral 27.2, 27 Appendix 1, 39

sample returnSpecial-use percentage requirement 8.16, 9.3,

9.4.4, 39 (sample return)

Adjusted taxable gifts2010 Tax Act 2.1, 4.3, 6.2.1, 6.2.2, 6.2.3, 7.1

529 college savings plans 6.3Annual Exclusion (See, Annual Exclusion)Audit percentage 4.5Clawback 6.2.2, 7A.8College savings (529) plans 6.3Computation 6.2.4, 6.3, 6.6, 6.7 (and

subparts), 6.8.6 (GRAT)Crummey gifts or trusts (See, Crummey trusts)Defined 6.2 (expansive)DSUEA, relationship to 5.3, 6.2.1, 6.2.2Exception when gift included in gross estate

6.2Favorable adjustments 6.7.1Filing requirement for Form 706 5.3Generally 6.2, 6.2.1, 6.2.4 (and Table 6.1), 6.3Gift tax returns (See, Gift tax returns)Gifts, included in gross estate 15.7GRATs 8.8 (and subparts extensive), 15.9Hot audit issue 4.6, 6.2Joint tenancies, non-qualified inclusion in

gross estate 13.2, 13.3Line 4 4.6, 5.3, 6.2, 6.6Line 5 Appendix 1 to Chapter 6, 7A.3.2,

7A.8.3, 7A.8.4.6, 7A.12, 7A.12.6Line 7 4.6, 6.2.3, 6.2.5, 6.7.11.3, 6.8.6, 7A.8.4.6Penalty causer 5.3, 6.2Portability elections (See, Deceased Spousal

Unused Exclusion Amount)Post-December 31, 1976 9.2Pre-1997 valuation adjustments to line 4 of

Form 706 6.2, 6.6Promissory notes 6.5.1, 11.3Reporting previously omitted gifts 6.6Retained interest reversal 14.4Significance 6.2, 15.7TAM 9718004 and downward adjustments 6.6Valuation adjustments on pre-1997 gifts 6.2,

6.6

Administrative expensesAccountant fees 18.3.3Business operation expenses 18.3.4Checklist to support regulatory purpose 18.3.4Circuit court division 18.1, 19.1, 19.2.3, 19.3,

19.6DSUEA (See, Transmission expenses under

Deceased Spousal Unused Exclusion Amount)

Evidence of regulatory purpose 18.3.4Executor (See, Fiduciary fees) Executor and trustee compared 18.3.2Failure to pay/file penalties for estate tax, not

deductible 19.5.7First category 18.3.1, 18.3.3, 19.4FLPs adverse connection 14.5, 14.6 Funeral expenses (See, Funeral expenses) Illustrated return with 38 (sample return on

death of first spouse), 39 (sample return on death of surviving spouse), 40 (sample portability return with impact on DSUEA when transmission expenses deduction on income tax return)

Interest expenses 18.3.6, 18.3.8 (statutory interest), 27.2.2 (Section 6166), 27.7

Interest on recapture tax with special-use denied 9.10

Legal fees (See, Attorneys and Attorney fees)Maintenance of property 18.3.1, 18.3.7Prior transfer tax credit (See, Prior transfer tax

credit)

Probate court orders, effect of 18.3, 18.3.1Reasonable and necessary test 9.10, 18.3,

18.3.1Regulations, October 2009 1.1, 18.1, 18.3.2,

18.3.3, 18.3.6, 18.3.8, 18.5 (Rev. Proc. 2011-48 in depth), 18.7, 39 (sample protective refund claim)

Repair expenses 18.3.7Sales expenses 18.3.5Sales expenses with recapture tax 9.10Second category 18.3.1, 19.4 (debts), 20.1

(generally), 20.2 (losses) State court decrees, effect of 18.3.1, 19.2.2,

20.3Statutory interest 18.3.8Subject to claims 18.3.1-18.3.3, 20.3Swing items 7A.2, 18.3, 18.4, 18.6, 21.5

(interplay with marital deduction), 38 (sample return on death of first spouse), 39 (sample return on death of surviving spouse), 40 (sample portability return with impact on DSUEA when transmission expenses deduction on income tax return) and See, Transmission expense under Deceased Spousal Unused Exclusion Amount)

Transmission expenses 7A.2, 7A.8.4.6 7A.9, 18.4, 21.15 38 (Recapitulation and Schedules J, M and R of illustrated return) Trustee fees (See, Fiduciary fees)

Waiver, swing items, 7A.2, 18.3, 18.4, 18.6, Chapter 38 (illustrated return death of first spouse), Chapter 40 (illustrated portability return)

Adverse conditions with real estate Confusion and opportunities created by

deduction regulations 8.3Impact on valuation (See, Valuation)Known or reasonably foreseeable 8.3, 8.6,

8.22, 19.2, 22.4.2 Refund claim, significance of 8.22, Chapter

19, 19.2, 19.2.5Special studies required 8.22Waiver of impact on fair market value 8.3,

8.22

AFR (See Applicable federal rate under Loans)

Alternative valuation date (AV Date)Anti-Kohler regulations 8.23.4Appraisals 8.7Bank accounts 11.2Charitable deduction 22.4.2Distributions, sales, and transfers 8.23Dividends 8.23.3Election 8.23Estate tax and marital deduction 21.8, 22.1GST tax 8.23, 25.11Intentional act to reduce value disallowed

8.23.4Interest 8.23.1Late return (or relief) 8.23Late-month determination of date 8.23Necessity for date-of-death and AV Date

appraisals 8.7 Planning considerations 8.23Portability elections 7A.9 (simplified reporting

inapplicable)Prepayment penalties in relationship to AV

Date 8.16Protective elections 8.23

Comprehensive Index Of Terms

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-8

Reduction of tax 8.23Rent 8.23.2Special-use elections 9.4.1, 9.7Uniform Estate Tax Apportionment Act (2003)

21.8Williamson Act, irrelevancy 8.23

Anderson, Pamela 3.1

Annual exclusion giftsAdequate disclosure on Form 709

recommended 6.9, 14.6Annual exclusion amount increases 6.3Annual gift tax exclusion 6.3Checks, delivery date 6.7.2Crummey trusts 6.3, 16.3-16.5Entity Interests 6.7.3Formula clauses 6.7.5 Future gifts and non-qualification 6.3Generally Chapter 17GRATs 6.8 (and subsections)Gross estate requirements 17.2.1GST planning 25.2, 25.6.4, 25.6.9, 25.8.1,

25.8.3, 25.8.13, 25.9.4 (Crummey gifts)GST trap with non-outright gifts 25.8.1GST trust definition 25.6.9Litigation-awarded annuities 17.2.1Lottery winnings 17.6Mortality 17.3Net income trusts 16.6Power of attorney 15.3Present interest requirement 6.3, 6.7.3Private (See, Private annuities)Question 15 on Form 706 17.2Uniform Transfers to Minors Act (See,

Uniform Transfers to Minors Act)

AnnuitiesApproved plans 17.2.2Effective dates 17.2.2Employee death benefits (See, Employee

death benefits)Estate tax revenues 17.1Exclusions 17.2.1, 17.2.2, 17.4.1 (government

plans)GRATs 6.8 (and subsections)

AppealsAlternate dispute resolution (ADR) 7.4Ex-parte communications with examination

generally precluded 7.3Fast-track settlement 7.4FLPs discount guidelines 7.3Generally Chapter 7Independence from audit 7.3Mediation 7.4Notice of Deficiency (90-day notice) 6.2.6,

6.6, 7.2, 7.4, 7A.12.4Portability elections 7A.12.3Post-appeals medication 7.4Refunds (See, Refunds)Refund claim proceedings 7.6S Corporation valuation problem 7.4Thirty-day notices, benefits of 7.2

Applicable credit amount Application 7A.8.3, 7.A.8.4.1, 7A.8.4.6, 7A.14

(surviving spouse gifting), (see, Returns Chapters 38-40)

Chart 6.2.4Defined 7A.8.1Reference 6.2.3

Applicable exclusion amount 2010 Tax Act 1.2, 1.3, 2.1, 4.3, 6.2.1, 6.2.2,

6.2.3, 7.12012 Tax Act 1.1, 1.2, 2.1, 4.3, 6.2.1, 6.2.2,

7.1, 7.3

Amounts, historic basic exclusion 1.2 (chart)Applicable credit amount (See, Applicable

Credit Amount)Audits, relation to 4.3Basic exclusion amount 1.2, 1.3, 5.3, 6.2,

6.2.2, 6.2.4 (Table 1 historic amounts), 6.2.5, 7A.8.1, 7A.8.3 (defined) and (See, Deceased Spousal Unused Exclusion Amount)

Defined 6.2, 7A.8.3DSUEA (See, Deceased spousal unused

exclusion amount) Fiduciary alert 7A.4Filing requirement 5.3 (See, Deceased Spousal

Unused Exclusion Amount) Gifting use 6.2, 6.2.1, 6.2.2, 6.2.3, 6.2.4, 6.3,

6.8.3, 7A.2, 7A.2.4, 7A.3 (and subparts), 7A.14 (used by surviving spouse), 7A.14.1 (use by surviving spouse with QDOT)

Income tax planning implications (See, Estate planning under Deceased Spousal Unused Exclusion Amount)

Inflation adjustment 6.2.1, 6.2.2, 7A.3.5Portability (see Deceased spousal unused

exclusion amount)Unification with GST exemption and gift tax

exemption 1.2, 6.1 (See 2010 Tax Act and 2012 Tax Act under this heading)

Applicable federal rate (AFR) (See Loans)

Applicable fraction (See, Generation-skipping transfer tax)

Applicable restrictions 14.8, 14.9

Appraisals and appraisersAdministrative expenses deduction 18.3,

18.3.1, 18.5Appropriate interest 25.7.2 (GST separate

share)Assumptions, significance of 8.8AV Date 8.7Characteristics 8.2, 8.7, 26.6Claims, impact on valuation 8.7, 10.4, 19.2.7, Communicating facts 8.2, 8.8, 8.25, 8.3, 10.4,

14.10Comparability test with restrictive agreements

10.16Credibility 8.2, 8.6, 8.8, 8.10Criteria for selection 8.7Daubert challenges 8.7, 26.6Difficulties with identification of sales of

fractional interests 8.16Discounts (See, Discounts)Discovery of drafts and communications 8.8,

14.12Drive-by warning 8.7Exhibits to Form 706 4.5Façade easements 26.6FID appraisers 8.13Going cheap, dangers 8.7, 26.6Hiring 8.8Industry-specific experience 10.3IRS pays much of the cost 8.7Known, knowable or reasonably foreseeable

facts, 8.6, 10.4Lease-fee assumptions 8.3Leveraging income, not discounted 11.4, 11.5Loans, gift or bona fide, 6.5.1, 11.3 Logic of assumptions 8.2, 8.3, 11.4Mt. Sinai syndrome 8.7Portability elections 7A.9, (See Properly-

prepared return under Deceased spousal unused exclusion amount)

Post-death facts (See, Post-death facts)Present value discounts 6.8 (GRATs), 11.3,

11.4, 17.5

Probate referees (California) not commonly advisable 8.7

Reputation (bad and good), significance of 7.1

Sales and loan coverage 11.4Significance of review 8.2Valuation of claims 19.2-19.2.7

Art Advisory Panel See, Art Valuation

Art valuation Art Advisory Panel 14.17.7Generally 14.17.7, 17.17.7A, 14.18Penalties 14.18Portability, returns electing (See, Valuation

references under Deceased Spousal Unused Exclusion Amount)

Assessment of estate and gift taxChanged rules in 1997 6.6, 6.12Extension of time to pay estate tax, extends

assessment time 5.5Gift tax assessment 6.6Portability Elections (See, Deceased Spousal

Unused Exclusion Amount)Special-use recapture tax 9.9

Assignee interestsAnnual exclusion 6.3Cases applying 14.8Family dynamics 14.8FLPs (See, Family limited partnerships (FLPs))Gambling in agreements 14.8Generally 14.8K-1 reporting 14.6State law 10.4, 14.8Valuation 14.8, 14.9, 14.13

Attorney-client communicationAppraiser engagement 8.8, 14.2, 26.6Citizenship inquiry 12.4Discovery 7.7, 8.8, 14.12, 26.6Privilege 7.1, 8.8, 14.12Ruling by judge who hears merits 8.8Scope narrowed 8.8Waiver of privilege 14.6Work product doctrine (See, Attorney Work

Product Doctrine)

Attorneys (and attorney fees)Accountant relations 6.5, 8.2, 9.10, 14.6

(FLPs and FLLCs), 25.8.6 (GST review), 25.8.8 (GST exemption allocations), 26.8 (conservation easement team)

Administrative expense deduction 7A.2, 18.1, 18.3.1, 18.3.2, 18.3.3 (in-depth), 18.3.4, (business expense), 18.4 (election), 18.5

Appraiser relations 8.2, 8.8Attorney-client communications or privilege

(See, Attorney-client communication)Charitable deduction observations 22.8Charitable trust review 22.3Co-ownership issues under state law 8.12FLPs and FLLC documentation and planning

14.6GST action steps for late allocation of GST

exemption 25.8.6GST highlight checklist 25.2Joint tenancy problems 13.1Late filing and payments penalties 5.6Marital deduction survivorship provisions 21.4Not subject to claims 20.3Partition experience 8.11Power of attorney 6.4Preparer penalties (See, Preparer penalties)Prior gift tax filing 6.4Reduced 706 filings 1.1

THE OVATION O-9

Reputation (bad and good), significance of 7.1

Section 2703 pressures 6.5.1 (loan terms), 10.15

Section 6166 and real estate attorneys 27.4Separate counsel recommended with FLPs or

FLLC 14.6Transmission expense 21.15, (See Deceased

Spousal Unused Exclusion Amount)Attorney work-product doctrine 8.8, 14.6,

14.12

AuditsAlternative dispute resolution procedures 7.4Appeals Chapter 7Applicable Exclusion Amount, relation to 4.3Area Counsel (new name for District Counsel)Avoiding IRS delay 7.1Benefit of lower-level resolution 7.2Classification of returns 4.2-4.4Cost of defense of estate audit (deductible)

vs. gift tax audit 6.3Crummey trust notices 6.3, 16.4Deductions consistent with case law, not

regulations 19.3, 19.3.1Demeanor 7.1District counsel refusal to concede burden

shift 7.2Failure to file gift tax returns 6.6“Fat” estate tax returns reduce audits 4.2Fishing expeditions 4.6FLPs (See, Family limited partnerships (FLPs))Group Manger, involvement 7.2Hot audit issues (See, Hot audit issues)Income tax return review 6.4Jones on Schedule I audits 17 Appendix 1Leveraged FIDs as negotiation position to

FLPs challenges 8.19National selection 4.4Portability elections (extended audit period)

7A.13Probabilities 4.3, 4.3.1, 4.3.2, 4.3.4Probate referees, triggering 8.7Retirement assets 17 Appendix 1Return revenue potential 4.3- 4.3.4Selection process 4.4Special-use election issues 9.4.5Staffing levels affecting audits 4.3.3Survey of perspective 4.4, 7.1Taxpayer strategy 7.1

AV Date (See, Alternate valuation date)

Bank and cash accountsAccrued interest 11.2Foreign currency 11.2Outstanding checks 11.2Situs 23.2Valuation 11.2

Barns (See, special-use valuation)

Barnes, Harris H. (“Trip”) III 6.6, 6.9, 22.8

Basic exclusion amount (See, Applicable exclusion amount)

BasisCarryover basis, modified (See, Form 8939)Conservation easements 26.9Consistency issues 7A.2, 7A.10 (and

subsections), 8.20 (See, First spouse death) Election on special-use recapture event 9.10First spouse death (See, First spouse death)Form 8939 (See, Form 8939)Hazardous waste, toxics, and environmental

restoration 8.22Interest trap with special-use recapture

election 9.10

IRD (Portability references: 7A.2, 7A.3.5, 7A.9, 7A.10.1, 7A.10.4), 9.3 (special-use), 10.6, 21.18

Joint tenancy limitations 13.1Joint tenancy with real property 8.14, 13.1,

13.3, 13.4Modified carryover basis (See, Form 8939)Planning trade-offs 7A.2 (See, Estate planning

under Deceased Spousal Unused Exclusion Amount heading)

Special-use election impact on basis 9.2, 9.6, 9.10

Step-up 7A.2, 7A.3.5, 7A.9, 7A.10.1, 7A.10.4), 21.18

Trade-off between income and estate taxTrap with Section 1016(c) elections 9.11

Below-market rate loans (See Loan and Applicable federal rate there under)

Blattmachr, Jonathan G. 15.12, 16.6

Blockage discounts (See, Discounts)Analysis 8.21Art and other collectibles 14.17.7, 14.17.7.1Debt not relevant to determination 8.16Generally 8.2Securities 10.19

Bohne, Douglas 22.8 (charitable giving)

Bond valuation (See, Stock and bond valuation)

Bongard v. Comr. (See, Family limited partnerships (FLPs))

BonusesEmployee death benefits 17.4

Bretney, Dean Assistance on special-use elections 9.2,

Chapter 39Cash and crop leases 9.8Chico, California area characteristics 9.2Crops- real or personal property for special-

use calculation 9.3Estate planning and special-use observations

9.14, 9 Appendix 1Extended special-use observations 9

Appendix 1Family members and qualified use 9.8Farm rental comparisons 9.5Material participation and special-use 9.8, 9.9,

9.14Qualification limitations 9.2Recapture tax lien planning issues 9.12

Brown, Harmon A. Charitable giving 22.8, 1.3 (emphasis on non-

tax considerations)

Built-in gain deductionConflicting approaches 10.5Controlling interests 10.5Denied with IRD items 10.6Evolution of law 10.5Full amount allowed 10.5Vasquez, Juan F., Tax Court Judge Present value calculation method S Corporations 10.5AWilliamson Act 10.5

Burden of proofAction steps 7.2Adversely applied with FLPs discount 8

Appendix 2Correspondence 7.1District counsel refusal to concede burden

shifting 7.2

Invalid determination by IRS 7.2, 10.3, 10.4New matter 7.2Practicalities 7.2Shifting to IRS 7.1, 7.2Supplemental returns that change valuation

5.7, 8.22, 10.4Burke, Brooke 3.1

Buy-sell agreements (See, Restrictive agreements)

Call rights (See, Options)

Canadian income tax 23.1

Carson, Johnny (The Tonight Show) 3.1

Cason, Len 22.8 (charitable giving)

Charitable deduction (See, Charitable gifts)

Charitable giftsAllowance 22.4Art and collectibles 22.4.1Barnes, Harris H. (“Trip”) III 22.8Benefits with FLP and FLLC planning 14.6Bohne, Douglas 22.8Brown, Harmon 22.8Cason, Len 22.8Charitable annuity trusts 22.4.1 (See, also

Charitable lead annuity trusts (CLATs) 22.4.1

Charitable organizations 22.2, 22.3Charitable purposes 22.2, 26.7 (not required

for deduction of a conservation easement), 22.9

Charitable remainder trusts (See, Charitable remainder trusts (CRTs))

Charitable unitrusts 22.4.1Commentator insights 22.8Conservation easements 22.4.1, 26.2, 26.3,

26.3.2, 26.3.3, 26.4 (extensive discussion), 26.6, 26.7 (charitable purpose needed)

Contests and disputes 22.2, 22.4 Copyrights 14.17.5, 22.4.1Deductible amount 22.4Deductions reducing value 22.4.2 Documentation on Schedule O 22.3Estate tax deduction requirements 22.2, 22.3 Façade easements 26.6Foreign death tax credit 23.3.1Formula Clauses 6.7.5, 22.4.1GST aspects 25.6.3 (interest in trust), 25.6.4

(GST trust), 25.8.3 (applicable fractional), 25.8.11 (excessive exemption allocation

Hirschson, Linda B. 22.8Interrelated computation 22.4.2Motivation 22.1, 22.7, 22.8, 22.9Pooled income funds 22.4.1Private foundations 4.6 (as hot audit issue),

22.6 (charitable giving), 22.9 (sales and self-dealing)

Qualified disclaimers 22.2, 22.5, 22.7 (extensive)

Qualified reformation 22.5Portability elections 7A.9 (simplified valuation

reporting)Redd, Charles A. (“Clary”) 22.8 (Charitable

giving), 22.10Reformable interest 22.2, 22.5Remainder in QTIP trust 21.14Schedule O to Chapters 38 and 39, integrates

with conservation easements in Chapter 39Section 6166 compared 22.9Settlements 22.2Simplified reporting (See, Deceased Spousal

Unused Exclusion Amount)

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-10

Split-interest charitable gifts 22.3, 22.4.1State law 22.2Swing items 18.3, 18.4, 22.4.2Taxes against 22.4.2Unrelated business taxable income 22.6Valuation of assets 21.19Will contest 22.4

Charitable lead annuity trusts (CLATs)Alternative to estate tax deferral payments

22.6, 22.8Business succession planning 22.8, 22.9Disclaimer issues 22.6, 22.7Estate planning 22.8Generally (See, Charitable gifts)GST 25.6.4 (GST trust), 25.8.11 (excessive

exemption allocation)Private foundations 22.6Section 6166 compared 22.9Self-dealing 22.6, 22.9Split-interest gifts 22.2, 22.4.1 (detail), 22.5Utilization 22.7

Charitable remainder trusts (CRTs)Deductible amount 22.4.1Documentation 22.3Generally (See, Charitable gifts)GST interest in trust 25.6.3Private foundations 22.6QTIP remainder contrasts 21.14Qualified reformation 22.5Reformable interest 22.5Self-dealing 22.6Split-interest gifts 22.4.1Unrelated business taxable income 22.6 Utilization 22.7

ChecksAuthorization under power of attorney 15.3Deduction for outstanding non-gift checks

19.5.1Delivery date for gift tax 6.7.2, 15.3Choate, Natalie B. 17 Appendix 1Churchill, Sir. Winston 1.1, 8.3, 16.1, 22.2Citera, Kathleen M. 8.10

Citizenship, U.S.Special-use election 9.3

Claims (See, Debts)

CLATs (See, Charitable lead annuity trusts)Cline, Christopher P. 16.8

Closely held businesses (See also, Family Limited Partnerships (FLPs) and Limited Liability Companies and Family Limited Liability Company (FLLCs))Corporate owned life insurance 12.1Farming, special-use 9.2Portability elections 10.21Section 6166 extension to pay (See, Section

6166 and Chapter 27 generally)Valuation of stock 10.3-10.22

Closely held business extension to pay (See, Section 6166)

Closing lettersCaution 27.15Effect 27.15Statutory interest deduction 18.3.8Colvin, John O, Tax Court Judge 10.4

Community property Aggregate division and valuation 8.20, 21.18Basis (See, Basis)

Marital deduction and non-participant spouse (retirement plans) 21.17

Non-aggregate division 8.20, 21.18Relationship to FID 8.10, 8.11, 8.20Relationship to minority interest discount

10.11Retirement Plans (ERISA plans, Qualified

plans, and IRAs) 17.5Right of survivorship 8.14, 8.20Transmutation 17.5

Consenting Spouses (See Gift Tax Returns and heading there under)

Conservation easementsAcquisition debt 26.3.4, Chapter 39 Schedule

UBasis 26.9Benefits 26.1, 26.2, 26.3Charitable deduction (See, Charitable gifts),

26.4 (extensive)Commercial recreation precluded 26.3.2,

26.3.3, 26.7, 26.10 (planning), 26.11Conservation easements 22.4.1, 26.2., 26.3,

26.3.2, 26.3.3, 26.4 (extensive discussion), 26.6, 26.7 (charitable purpose needed)

Conservation purpose 26.3.2 (part of qualified conservation easement requirements), 26.4, (not required for charitable deduction of conservation easement), 26.7 (restrictions), 26.8

Façade easements 26.6Illustrated Chapter 39 (sample return)

ConsiderationContribution to joint tenancies (See, Joint

tenancies)Full and adequate consideration severs

Section 2036 strings 3.3, 6.9, 14.4, 14.14 (partial application discussed) 14 Appendix 1

Gift not consideration for joint tenancy contribution 13.3

Gifting 6.5, 6.5.1, 6.9

Contacting IRSContact information 5.9Development right preclusion agreement

26.3.5Development rights 26.3.3 (limitation for

exclusion), 26.3.5 (extensive discussion regarding retention and farming exclusion), 26.6, 26.10

Estate planning 26.1, 26.3.3, 26.4, 26.8 (extensive), 26.9 (basis), 26.10 (special-use), 26.11

Extensions of time (See, Filing estate tax return and Late filing penalty)

Family 26.3.1 (ownership requirement), 26.7Farming 26.3.5 (excluded purpose for

retained development right reduction of easement), 26.3.5, 26.8, 26.9, 26.10 (relationship to special-use election)

Gas rights 26.7Generally Chapter 26Gift tax deduction 26.2, 26.3.2, 26.6

(valuation), 26.7Hutton, William T. 26.2, 26.3.2Income tax deduction 26.2, 26.3, 26.4, 26.6,

26.7, 26.9Indirect ownership minimum 26.5 Limitation on exclusion 26.2Location of property 26.3.2Marital deduction caution 26.3.3Mineral rights 26.7 (surface and subsurface

distinguished)No response to estate tax filing 5.9Oil rights 26.7

Percentage tests and limitations 26.3, 26.3.3 (limitations), 26.4, 26.5 (indirect ownership requirement)

Perpetual grant for exclusion 26.3.2, 26.6, 26.10

Purchased easements 26.1, 26.3, 26.6Qualified conservation easements 26.3,

26.3.1 (land subject to), 26.3.2 (defined), 26.3.3 (limitations), 26.3.5, 26.5 (indirect ownership), 26.6 (valuation), 26.7, 26.8, 26.9, 26.10 (special-use relationship)

Qualified organization 26.3.2 (defined) Raimondo, Carol 26.3.4Recapture tax on sale of conservation

easement 9.9Retained development rights (See,

Development rights under this heading for Conservation easements)

Split-interest gift exception 22.4.1Spousal gift planning 26.3.3Valuation 26.2

Control premium (See, also Premiums)Closely-held stock 10.4, 10.7, 10.12FID, not applicable as matter of law 8.12Funding marital or charitable deduction 7A.9

(scenario 4), 21.19

Co-ownershipAgreements 15.10Creation prior to FLP transfers 14.6FLP relationship 14.6FID (See, Fractional interest discounts)Joint tenancy contrasted 13.1Retained interest issues 8.10, 14.4, 15.10 (See,

Retained Interests)Step-transaction 14.6 (See, Step-transactions

and see Retained interest (Section 2036))Valuation compared to entity ownership 8.16Coughlin II, George H. 17 Appendix 1Court Appointed Executor (See Executor)

Credit for gift taxes paidComputation of the gift tax on the Form 709

6.2.4, 6.3Credit against estate tax 4.5, 6.2.3, 6.2.4, 6.2.5

(pre-2002 gifts), 6.7.11.3 (net gifts), 6.8.6 (GRATs), 7A.8.4.6

Credit of prior transfer tax (See, Prior transfer tax credit)

Credit shelter trustBeneficiary designation concerns 17

Appendix 1Conservation easement planning 26.3.3Funding (See, Funding)GST exemption allocations 25.8.11, 25.9.1

(reverse QTIP and illustrated funding), Chapter 38, Schedule R

Incidents of ownership 12.6Mellinger 5.6, 14.14Power of appointment impact 16.1 QTIP-ing a credit shelter trust 15.5C, (See,

Deceased Spousal Unused Exclusion Amount)

Portability elections (See, Deceased Spousal Unused Exclusion Amount)

Retirement planning problems when beneficiary 17 Appendix 1

Transmission expense reported on Form 1041 21.15, Chapter 38 (sample return)

Unfunded trust 14.7

Crummey trustsAnnual exclusion 6.3Beneficiary deemed as GST transferor 16.5Beneficiary’s deemed gifting 16.5

THE OVATION O-11

Demand/Withdrawal rights, direct and indirect gifts, enforceable rights 6.3, 16.4

Estate tax inclusion 16.8Five-and-five exception to release of general

power of appointment 16.4GST 16.9 (shifting transferor), 25.1, 25.2,

25.6.4, 25.7.3 (multiple transferors), 25.8 (exclusions and exemptions), 25.8.6 (timely or late allocations), 25.8.10 (ETIP), 25.9 (identity of transferor), 25.9.4 (lapsing power problem)

Hanging powers 16.6, 16.7Income taxpayer shift 16.6Lapse of general power of appointment 16.3,

16.4, 25.6.4, 25.9.4 (extensive discussion), (See, Generation-skipping transfer tax)

Life insurance trusts 12.3Notice to beneficiaries 6.3, 6.9, 16.4Present-interest treatment 6.3, 12.3, 14

Appendix 1Summary under four tax regimes 16 Appendix

1Trojan horse warning 6.3, 16.4, 16.5Curtis, Tony 3.1

DebtAssumable versus non-assumable 8.16Classification (See, Recourse debt vs. non-

recourse debt)Deduction in excess of real property value

8.16, 8.17Deduction in relationship to FID 8.17Fixed and ascertainable versus contingent

8.18Garn-St. Germain Federal Depository

Institutions Act 8.16Joint tenancy contribution treatment 13.3Personal liability versus contingent obligation

8.17, 8.18, 18.3.2, 18.5, Chapter 19 (generally), 19.2.8, 19.3, Chapter 39 (sample Schedule PC)

Prepayment penalties, impact on value 8.16Recourse debt in relationship to guaranty and

FID 8.18Regulatory treatment 8.16, 8.18Section 6166 elections 8.16, 27.2.1, 27.13.2

DebtsAcquisition debt and conservation easements

26.3.4Adverse connection to FLP distributions 14.4,

14.6, 14 Appendix 1Bona fides required 19.2.1Care-giving liability 19.5.9Checks outstanding at death 19.5.1Cross-claims 19.2.7Family loan deduction 19.5.10First category 19.1, 19.2, 19.4 (generally), 20.1Generally Chapter 19Gift taxes 19.2.10, 19.5.6Guarantees 19.5.5Income taxes 19.2.10, 19.5.6Marital rights relinquished 19.5.2Mortgages 19.5.13, (See, Recourse debt versus

non-recourse debt) Palimony 19.5.3Post-death facts (See, Post-death facts)Prior transfer tax credit 24.2Protective refund claims (See, Refund claims) Regulation change in October 2009 1.1, 19.1,

19.2- 19.7Reporting changes on items deducted under

exceptions not required by post-death regulations 19.2 – 19.2.7

Second category 19.1, 20.1, 20.2Settlements 19.2.2Support obligations 19.2.3, 19.5.3

Deceased spousal unused exclusion amount (DSUEA)Adjusted taxable gifts 4.6, 5.3, 6.1, 6.2

(defined), 6.2.4, 6.6, 6.7, 6.7.11.3, 6.8.6 (death during GRAT), 77A.6, 7A.8.3, 7A.8.4.1, 7A.8.4.4, 7A.8.4.6, 7A.9, 7A.10.2, 7A.12, 7A.12.4

Administrative expenses 7A.2, 7A.8.4.6, 7A.9, 21.15

Applicable exclusion amount 5.3, 6.2.2, 6.2.5 (pre-2002 gifts), 7A.1, 7A.3, 7A.3.2, 7A.3.3 (planning). 7A.3.5 (no inflation adjustment on DSUEA), 7A.3.6, 7A.8, 7A.8.3, 7A.8.3.1 (QDOT), 7A.12.6, 7A.13, 7A.14 (DSUEA use by surviving spouse), 7A.14.1 (QDOT ordering)

Appeals 7A.12.3Audit, period of 7A.13 (extensive)Basis (income tax) considerations 7A.2 (Black

Swan duality), 7A.3 (and all subsections)Blended families and DSUEA 2.1, 7A.5, 7A.15Calculation 7A.3.4 (planning), 7A.8,

7A.8.3, 7A.8.3.1, 7A.8.3 (extensive), 7A.9 (simplified), 7A 8.4.6 (pre 2002 gifts), 7A.12 and subsections (addressing uncertainties of amount), Chapter 40 for illustrated 2013 return

Complete (See, Properly-prepared return under this heading)

Definitions 7A.8.1Electing Portability 2.1 (timely filed); 7A.8.4

(extensive), 7A.8.4.1, 7A.8.4.2 (how to make), 7A.10.4, 7A.12.4 (other deductions), A.12.6

Electing out 2.5, 7A.8.2, 7A.12Estate planning 1.3, 5.3, 7A.1, 7A.2 7A.5,

7A.3 (estate tax insurance), 7A.3.1, 7A.3.2, 7A.3 (and all subsections), 7A.4, 7A.5, 7A.6 (QTIPing otherwise exempt trust), 7A.7 (general power of appointment trust), 7A.10 and subsections (income tax basis), 7A.13 (extended audit), 7A.14 (use), 7A.14.1 (use with QDOT), 7A.15, 15.5C, 21.25

Executors 5.3, 7A.1, 7A.3.1, 7A.3.3 (authority), 7A.4 (alert), 7A.8.2 (control), 7A.8.4 (how to make election), 7A.8.4.4, 7A.8.4.5, 7A.9, 7A.10.2, 7A.12, 7A.13 (extended audit period) Extending time for timely filed return 2.1, 2.5, 7A.8.4.1 (limited late-return relief), 7A.8.4.4, 21.13

Frozen quality 7A.1, 7A.2, 7A.3.5 (extensive)Gifting use 7A.8, 7A.8.3.1, 7A.14, 7A.14.1GST, limitations and use 7A.9, 25.2Hijacking Credit Shelter Trust 7A.1, 7A.4Income tax considerations (See, Estate

planning considerations under this DSUEA heading)

Insurance, DSUEA election as 5.3, 7A.1, 7A.3.3 (extensive)

Last deceased spouse (See, Prior deceased spouse under this DSUEA heading)

Life insurance 7A3.3, 12.11Loss deductions 21.4Marital deduction 7A.5, 22.1, 21.2 (warning

regarding survivorship requirement), 21.15, 21.25

Mellinger discounts not applicable unless QTIP 7A.7

Multiple executors (See Executors under the DSUEA heading)

Notice 2012-21 2.1Ordering rule 6.2.2 (gifts), 7A.8, 7A.14,

7A.14.1Partnerships/Proprietorships 7A.8.4.2, 7A.9 Phantom DSUEA 7A.8.4.6Pre-2002 gifts, impact on DSUEA 6.2.5,

7A.8.4.6

Properly-prepared return 2.1, 7A.3.3, 7A.8.4, 7A.8.4.1, 7A.8.4.2, 7A.8.4.4, 7A.9. 7A (traditional versus simplified), 7A.10.2, 7A.10.4

Prior deceased spouse 5.3, 7A.8.1 (defined), 7A.8.4.3, 7A.14 (use of DSUEA from), 7A.14.1

QDOT 7A.1, 7A.8.3.1, 7A.14.1, 21.20QTIP elections (See, QTIPing Credit

Shelter Trust below and Estate Planning Considerations above in this section)

QTIPing Credit Shelter Trust 7A.2, 7A.3.2, 7A.3.3, 7A.3.4 (extensive), 7A.3.5, 7A.3.6, 7A.4 (fiduciary alert), 7A.6

Qualified disclaimers 2.5, 6.7.10, 7A.3.2, 7A.7Rates of tax (See, Estate planning

considerations under this DSUEA heading)Real Estate 7A.8.4.2, 7A.9, 8.24, Chapter

40 (sample return) (See, Real Estate and Valuation topics)

Refund claims 7A.8.4.5 (same sex), 13.3A, 21.25

Regulations (See, topics referenced under this DSUEA heading)

Reporting requirements (See, electing portability)

Rev. Proc. 2001-38 7A3.4, 7A.6, 21.9.2, 21.10, 21.13

Rev. Proc. 2013-17 6.8.1, 7A.8.4.1, 7A.8.4.3, 7A.8.4.4, 7A.8.4.5

Rev. Proc. 2014-18 2.1, 4.5A, 7A.8.4.1, 7A.8.4.4 (extensive), 7A 8.4.4 (Windsor claims), 13.3A

Reverse QTIP election 7A.9, 25.2, Chapter 40Same-sex married couples 6.8.1, 7A.8.4.1,

7A.8.4.3, 7A.8.4.4, 7A.8.4.5 (See, Prior deceased spouse under this DSUEA heading)

Schedule M (See, in this heading GST limitations and use, Marital deduction, QTIP elections, QTIPing credit shelter trust, Estate planning), 40 (sample portability Form 706)

Simplified reporting of value 7A.9 (extensive), 7A.10 and subparts (income tax basis considerations), 7A.10.4 (practicalities), 7A.11 (state law), 21.10, Chapter 40 (sample return)

Special-use 9.14Special (or short-cut) valuation exception (See

Simplified reporting of value)Spouse (See, Prior deceased spouse)Sunset 6.2.1Supplemental estate tax return 7A.8.2, 7A.8.3,

7A.12Timely-filed return required 7A.8.4.1

(requirement and limited relief), 7A.8.4.4 (same sex limited relief), (See, generally Electing Portability under this DSUEA heading)

Transmission expenses 7A.2, 7A.8.4.6 7A.9, 21.15, Chapter 40 (and illustrated return)

Valuation, Simplified Reporting 4.2, 4.5, 5.3, 7A.6, 7A.8, 7A.8.1, 7A.8.2, 7A.8.4, 7A.9 (extensive), 7A.10 and subsections (income tax basis issue), 7A.11 (state law), 8.8, 9.14, 10.2, 10.21, 11.6, 10.20, 14.19

Valuation, Traditional Reporting 5.3, 7A.6, 7A.8, 7A.8.2, 7A.9 (extensive), 7A.10.3, 7A.10.4, 7A.11 (state law), 9.14, 10.20, 14.20

Warning Fiduciaries 5.3, 7A.4 (See, generally the reporting and valuation requirements under this DSUEA heading)

DeductionsAccounting fees 18.3.3Accrued rent 19.5.10Administrative expenses (See, Administrative

expenses, Schedule J)

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-12

Amount deductible for claims and settlements 19.2.2

Bona fides required 19.2.1Built-in gain 10.5, 10.6Business operations 18.3.4Charitable (See, Charitable gifts)Claims (See, Claims)Contingent obligations 18.1, 18.3.2, 18.5,

Chapter 19 (generally), 19.2.8, 19.3, Chapter 39 (sample Schedule PC)

Cross-claims 19.2.7Debt and Debts (See, Debt)Deductions in respect to a decedent denied

on estate tax return 19.5.12First category 19.1, 19.2, 19.4 (generally), 20.1Foreign death taxes 19.5.4, 23.9Funeral expenses (See, Funeral Expenses)Gift taxes 19.2.10Gross estate valuation impact 19.2.7Income tax 19.2.10Income tax deductions with conservation

easements 26.2, 26.3.2, 26.4, 26.5, 26.6, 26.7, 26.9

Income tax interest deduction for tax payments denied 9.10

Interest 18.3.6, 18.3.8, 27.2.2 (6166)Legal fees 18.3.3Maintenance 18.3.7Marital deduction (See, Marital deduction),

Chapter 21Meddling with valuation principles by IRS 1.1,

8.3, 8.22, 19.2.7Non-contingent obligations 19.2, 19.2.8, 19.3

and generally Chapter 19Penalties on estate tax not deductible 19.5.7Protective refund claims 18.3.2, 18.3.3,

19.2, 19.2.5, (See, Refund claims. See, Supplemental estate tax returns)

Real estate taxes 19.2.10 Repairs 18.3.7State death tax 19.5.8Strategic choices to deductions of uncertain

amount 19.2.7, 19.2.8, 19.2.9, 19.3.1 (disclosures)

Valuation of claims 19.2.7

Defense of Marriage Act (DOMA)GRATs 6.8.1Joint Tenancies 13.3AMarital deduction 21.1Rev. Proc. 2013-17 6.8.1, 7A.8.4.1, 7A.8.4.3,

7A.8.4.4, 7A.8.4.5, 21.1

Deferral to pay of estate taxes (See, Section 6166)

Defined-value gifts (See, Formula Gifts)

Delaware Trusts General 16.1Nenno, Richard, 15.12, 16.1

Development rights (See, conservation easements)

Direct skip (See, Generation-skipping transfer tax)

Disclaimers (See, Qualified disclaimers)

DiscountsAggregate community property agreements

21.18Basis and special use 9.6Blockage discounts 8.2, 8.21Charitable gift planning 22.9, 22.10Charitable lead annuity trusts (CLATs) 22.9Charitable trust funding 21.19Comfort zone 8.13

Conservative discount planning 17.3Cross-claim impact 19.2.7Effective discount reporting 8.5Family attribution rejected 10.8FIDs (See, Fractional interest discounts

(FIDs))First spouse death 8.20FLPs (See, Family Limited Partnership (FLP))FLPs and FLLCs vs. tenancy in common 8.17Hot audit issue 4.6 Impact of deduction regulations and

opportunities 8.3Lack of marketability (See, Lack of

marketability)Legal interests value 8.2Lottery winnings 17.5Marital deduction funding 3.3, 7A.9 (scenario

4), 21.19Minority interest discounts (See, Minority

interest discounts)Present value discounts 11.3, 11.4Private annuities and discounts 17.3Promissory note valuation 11.3, 11.4 (See,

Estate planning considerations under Deceased Spousal Unused Exclusion Amount)

Red flag 8.2, 8.5Safe harbor, absence of 8.13, 10.10 Special-use relevancy 9.6, 9.10Strategic approach with FLPs and FLLCs 14.6Tenancy in common vs. FLPs and FLLCs 8.17Tiered discounts 14.15Trust funding 3.3, 7A.9 (scenario 4), 14.16,

14.17 (unfunded trusts) 14 Appendix 1, 21.1, 21.18, 21.19

Unrelated business taxable income 22.6

DiscoveryArt Advisory Panel 14.17.4Attorney-client communications 8.8, 14.6,

14.12Estate tax attorneys encouraged with FLPs

and FLLCs 14.6Planning-related communications 14.6, 14.12Valuation engineers 8.15Work product (See, Attorney work product)

Distribution preferences (See, Family Limited Partnerships (FLPs)

Dividends (See, Valuation)

Durable power of attorney (See, Power of attorney)

Duty of consistency (See, First spouse death), 11.3

DSUEAGift tax assessments 6.6

DSUEA (See, Deceased spousal unused exclusion amount)

DSUE Amount (See, Deceased spousal unused exclusion amount (DSUEA))Eckstein, David 10.13A

Economic interests (See, Assignee interests)

Effective discounts (See, Discounts)Illustration 8.5Reporting on Schedules A, B, F and G 8.5

Elections AV Date election (See, Alternative Valuation

Date)DSUEA election (See, Deceased Spousal

Unused Exclusion Amount)

GST exemption allocation (See, Generation skipping transfer tax (GST tax))

Joint and survivor annuity election 17.5Portability (See, Deceased Spousal Unused

Exclusion Amount)QDOT election (See, Qualified Domestic

Trust)QTIP (See, Qualified Terminable Interest)Qualified family owned business election

(See, Qualified family owned business election)

Reverse QTIP election (See, Qualified Terminable Interest)

Section 1016(c) elections (See, Special Use)Section 6163 Election (See, Section 6163)Section 6166 elections (See, Section 6166)Section 642(g) waiver or election (See,

Administrative expenses)Special-use elections (See, Special Use)Electronic Federal Tax Payment System

(EFTPS) 4.1

Employee death benefitsBonuses 17.4Exclusions 17.4.1Generally 17.4

Environmental and adverse conditions on real propertyBasis benefit 8.22Conflicts with Schedule K 8.3Generally 8.3 and 8.22

Equitable recoupment 21.11.2

Estate tax and gift tax assessment DSUEA election extends review prior 7A.13Extension of time 5.5, 7.1 (no audit extension),

27.2 (impact on collection)Finality of gift tax valuation 6.2, 6.4, 6.6, 6.9

(adequate disclosure)Mitigation 7.5Multiple estate tax returns filed 5.3, 7A.8.2Portability, extended IRS review 7A.8,

7A.8.4.1, 7A.12.3, 7A.13 (extensive)Protective refund claims 5.2, 5.5, 5.6, 5.8

(deposits and payments discussed), 6.6, 7.2, 7.5 (state refunds), 7.6 (extensive discussion of refund claims), 7A.8.4.3, 7A.8.4.5 (same sex), 13.3A, 18.3.2, 18.5 (Rev. Proc. 2011-48 in depth), 19.2 (See Refunds), Chapter 39 (sample)

Refund for overpayments (See Protective refund claims under this heading)

Request for prompt assessment 27.14Statute of limitations 5.5, 6.6, 6.9 (gift tax and

adequate disclosure rule), 7.1 (mitigation also state law), 7.6, 18.3.2, 18.3.6, 18.6, 27.2 (impact on collection)

Estate tax inclusion period (ETIP) (See Generation-skipping transfer tax)

Estate tax returns (Form 706)Annuities 17, 17.1, 17.2.2 (exclusions),

Chapter 15 (annuities), 15.13Audit percentages and coverage 4.3-4.3.4Charitable contributions reported 22.1Classification by IRS 4.2-4.4Deferral of estate tax payments (See Section

6166)Discussed in detail throughout textDSUEA election (timely filed return required)

(See, Deceased Spousal Unused Exclusion Amount)

Estate planning tool 1.1“Fat” estate tax returns 4.2, 4.4, 4.5 Filing (See, Filing estate tax return)

THE OVATION O-13

Filing Requirement, gross estate/DSUEA, 5.3, 7A.1, 7A.8 (and all subsections), 7A.9 (simplified reporting)

GST reporting purposes 2.1, 7A.6, 25.1, Chapter 38 (sample return on death of first spouse), 39 (sample return on death of unmarried individual)

Marital deduction relief extension to elect 21.13.2

Overpayment due to lack of practitioner experience 1.2, 1.4

Portability elections (See, Deceased Spousal Unused Exclusion Amount)

Presentation Chapter 4, sample returns Chapter 38 (first spouse), 39 (surviving spouse/unmarried), 40 (portability)

Processing by IRS 4.4Questions on the return 4.7, 16.1 (regarding

powers of appointment), Chapter 15 (annuities), 15.13, 16.1, 17.2, 21.11.1 (QTIP, Section 2044, stub income), 22.3, 27.2 (Section 6166 election)

Review by experienced practitioner 1.4Sample portability return Chapter 40Sample: unmarried individual’s death Chapter

39Sample: first spouse death Chapter 38Statistics, filing volume 1.2 (Table 1.1 and

discussion)Strategic use 1.3, 2 (extension of time to file

and pay), 3 (Mellinger principle), 7 (Estate planning under Deceased Spousal Unused Exclusion Amount)

Table of contents 4.5Tax Act of 2010, 2.1, 4.3, 6.2.1, 6.2.2, 6.2.3,

7.1Tax Act of 2012 2.1, 4.3, 6.2.1, 6.2.2, 7A.1, 7A.3.4 Tax inclusive 15.6

Estate TrustsMarital deduction 21.9Portability election planning 7A.5

Estate Val Publicly Traded Stock and bond valuations

10.2, illustrated return in Chapter 38

ETIP (Estate tax inclusion period) (See, Generation-skipping transfer tax)

EvidenceAdministrative expense deductions (See,

Reasonable and necessary test)Burden of proof 7.2, 13.3, 13.5 (See, Burden

of Proof)Daubert challenges 8.7, 26.6Farm rental income comparisons 9.5FLP purpose 14.6, 14 Appendix 1FOIA 8.13Non-qualified joint tenancy burden of proof

of contribution 13.3, 13.5Portability, extended audit 7A.13Prior transfer tax credit mortality 24.3Return value as admission 5.7, 8.22, 14.17Substantial and legitimate non-tax purpose

(FLP) 14 Appendix 1, 16.6

ExecutorCo-executor 5.3Court-appointed 5.3, 7A.4, 7A.8.4Definition 5.3, 7A.4, 7A.8.4Discharge 4.5 (request for prompt

assessment), 27.8 (Section 6166 liability), 27.14 (request and sample letter)

Disclosure of unreported gifts 6.4Duty to file estate tax return 5.3Fees (See Fiduciary fees)Form 56 18.5Identity 5.3, 7A.4, 7A.8.4

Multiple executors 5.3, 7A.4, 7A.8.4Portability Elections (See, Deceased Spousal

Unused Exclusion Amount)Trustees 5.3, 7A.4, 18.3, 18.3.3

Exemption trust (See also, Credit shelter trust and GST Tax)Avoiding general powers of appointment 16.1Estate planning 1.3, 3.2, 3.2 (illustration), 16.1Exemption amount (exclusion) 1.2 (chart), 1.3Portability elections (See, Estate planning

under Deceased Spousal Unused Exclusion Amount)

QTIP election alternative 7A.6

Expenses of administration (See, Administrative expenses)

Expenses of saleDeduction (See, Administrative expenses)Valuation (See, Valuation)

Extension of time to file and/or payAccountants 5.5, 5.6, Communication with/from IRS 2.5, 5.4, 5.5,

5.8, 5.9Confirmation of IRS Receipt 2.5, 5.4Disclosure of cause 5.8DSUEA (See, Spousal Unused Exclusion

Amount)Early application recommended 5.5Extends collection period 5.5, 27.2First spouse death 2.1, 2.2Form 4768 2.5, 5.4, 5.5, 5.8Generally discussed 5.5, 5.8, 27.1Interest deduction 18.3.6IRS tightening of time 5.5Lien extended 2.5Liquidity concerns 2.5Mellinger discount protection 5.8, 7A.7, 14.14

(See, Chapter 3 for strategic purpose)Prior Transfer Credit protection 2.5Proving request 5.5QTIP Elections, Revocation, Relationship

to, 2.5, (See, Deceased Spousal Unused Exclusion Amount)

Reasonable cause to extend time to pay 5.5, 5.8

Relationship to prior transfer tax credit 2.5, 2.4

Relief if late 5.5Remainder 27.14Reversion 27.13Sample language on first spouse death 2.5

(QTIP and/or portability)Section 6163 27.13Section 6166 deferral, Chapter 27 generally

(See, Section 6166)Separate Requests 5.5Time allowed to extend 5.5, 7A.8.4.4

Fair market value standardAppraisal communication 8.2, 8.8Appraisal quality 8.7Assumable versus non-assumable debt 8.16Closely-held business interests 10.3Comparable sales 8.7, 8.10, 8.12, 8.16, 10.4Contrasted with special-use value 9.2Control Premium (See, Control premium)Controlling stock 10.7Deduction regulation interference 8.2, 8.16-

8.19, 18.1, 19.2.7Definition 7A.10.3, 8.2 (extended coverage)Evolution (or mutation) 8.20, 14.17.7.1Family attribution rejected 10.7First spouse death 8.20FID 8.9-8.20

Formula clauses with gifts 6.7.5GRATs 6.8.2-6.8.8Highest and best use 8.2, 8.3, 8.4 (extensive),

8.11, 9.2Hypothetical lease terms rejected 8.3Hypothetical willing buyer and willing seller

standard 8.2, 10.3, 14.17.7.1Lease impact 8.3Loans from 18.3.6Lottery winning valuation controversy 17.5Objective standard 8.2, 10.3, 14.17.7.1Post-death facts 8.6, 10.4Portability (See, Deceased Spousal Unused

Exclusion Amount)Real estate 8.2, 8.3Recourse and non-recourse debt 8.16Rev. Rul. 59-60 10.3, 10.4 (in depth)Self-Cancelling notes (SCINS) 6.11Stocks and bonds (See, Stocks and bonds)Tiered discounts 14.15Willing buyer and willing seller (hypothetical)

standard 8.2, 8.3, 8.4, 8.12, 8.20 (reference to dilution of standard), 10.3, 14.9, 14.17.7.1 (twisting standard with passion)

Family limited partnerships (FLPs)Annual exclusion problems 6.7.3Assignee interests 14.4, 14.8, 14.9, 14.13, 14

Appendix 1Audits, planning for 14.6, 14.12 (discovery),

14.13 (IRS settlement guidelines from 2007) Benefits retained 14.4, 14.5, 14.6, 14

Appendix 1Bongard v. Comr. Test 14.5, 14.6 (extensively

applied), 14.14, 14 Appendix 1, Built-in gain deduction denied 10.6Capital accountant maintenance 14.6, 14

Appendix 1Challenges by IRS, historic 14.5Charitable giving 14.6 (in relation to Bongard

test 14.6), 22.6, 22.9Checklist for planning 14.6Classic distinctions 14.2, 14.5Co-ownerships (See, Fractional interest

discounts, Retained interests and Step-transaction) 14.6

Creditor protection 14.6, 14 Appendix 1Discounts 14.13 (cases), (See, Discounts,

Lack of Marketability Discounts, Minority Interest Discounts and Valuation)

Discounts may be less than with FIDs if property in debt 8.17

Discovery 14.12, (See Attorney-work product and Discovery)

Distribution preferences 14.11Family dynamics on Bongard test 14.6, 14

Appendix 1Family LLCs (FLLCs) (See Limited Liability

Company (LLCs))Financial statement issuance 14.6Funding value to trusts and marital deduction

3.3, 21.19,14 Appendix 1Gifting in relationship to Bongard test 14.6, 14

Appendix 1Illiquidity impact 14.3, 14.6Implied agreement 14.4, 14.5, 14.6Income tax returns 14.6Indirect gifts (See, Step transaction)Investment FLPs 14.2, 14.3, 14.4, 14.6

(extensive), 14.13 (valuation), 14 Appendix 1 (various cases)

Life expectancy expectation 14.2, 14.6Limited Liability 14.6, 14 Appendix 1Liquidity analysis with FLP and FLLC planning

14.6Management fees 14.6, 14 Appendix 1Marital trust as member or partner 14.6

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-14

Meetings and FLP defense 14.6Non-tax impact 14.3Non-tax purpose, significance of 14.2, 14.3,

14.6Operating business, benefits of 14.6, 14

Appendix 1Partition, avoidance 14.6, 14 Appendix 1Present Interest Gift Challenges 6.7.3Qualified disclaimers (See, Qualified

disclaimers)Retained interests 14.4, 14.5, 14.6, 14.14, 5.10,

14 Appendix 1Schedule G connection 15.1Separate counsel recommended 14.6Settlement guidelines 14.13State law 14.6, 14.8, 14.9 (generally), 14

Appendix 1Taxpayer identification numbers 14.6Tiered discounts 14.15Types 14.2, 14.5Valuation 14.2, 14.3, 14.6, 14.13, 14.8,

14.9, 14.13 (cases reviewed), 21.19 (See, Valuation)

Family loans (See, Loans and Promissory Notes)

Farms Conservation easements 26.3.5 (excluded

purpose for retained development right reduction of easement), 26.3.5, 26.8, 26.9, 26.10 (relationship to special-use election)

Estate tax not proven threat to continuation of family farm business 9.1

Special-use valuation (See, Special-use value)

FID (Fractional Interest Discount) (See, Fractional Interest Discount)

Fiduciary feesAdministrative expenses 18.3.2, 18.3.3 (See,

Administrative Expenses)Estimated payments 18.3.2Executor fees 18.3.1, 18.3.2Factors supporting 18.3.1, Notification to IRS 18.3.2Reasonable and necessary 18.3.1, 18.3.3Refund Claim 18.3.3 (See, Refund Claims)Section 642(g) waiver or election 7A.2, 7A.8.4,

18.2, 18.4, sample returns Chapters 38 and 40

Time records 18.3.1Transmission expenses 21.15, (See, each of

Administrative Expenses and Deceased Spousal Unused Exclusion Amount)

Trustee and executor compared 18.3.2Trustee fees 18.3.1, 18.3.3Waiver 18.3.2

Filing, estate tax returnAddresses 5.2Adjusted taxable gifts, significance of 5.3Audit probability 4.3- 4.3.4Communication with IRS 5.9Delivery services 5.2DSUEA election, timely filed requirement

(See, Deceased Spousal Unused Exclusion Amount)

Due date 5.1, 5.7Duty to file 5.3, 7A.8.4 (and subsections),

7A.8.4.1Exhibits and presentation 4.5Extending time to file and pay 2.5, 5.4, 5.5“Fat” return recommended 4.1, 4.2, 4.5Historic filing trends 1.2In person filing 5.2Late filing discouraged 5.5-5.9Late filing, loss of DSUEA 2.1, 5.5, 7A.8.4.1,

7A.8.4.4 (limited relief), (See, Deceased

Spousal Unused Exclusion Amount)Late filing, loss of Section 6166 election 5.4Late filing, receipt date applies 5.7Late filing, special-use election 5.4Local office filing 5.5Location 5.2Portability election 4,5A, (See, Deceased

Spousal Unused Exclusion Amount)Practice caution to file 5.3, 7A.3.3Presentation, generally Chapter 4Processing by IRS 4.4Receipt for 5.2Requirement for traditional reporting 5.3Review by experienced practitioner

recommended 1.4Time calculation 5.7Value threshold 5.3, 7A.9 (simplified returns

and portability)

First spouse deathBasis, considerations 8.20Basis planning for death of surviving spouse

(See, Estate planning under Deceased Spousal Unused Exclusion Amount)

Basis, issue of consistency 8.20, 7A.10.3 (portability elections)

Community property, aggregate division agreements 8.20

Credibility issues 8.20Discounts (See, Discounts)DSUEA (See, DSUEA)Duty of consistency 8.20, 7A.10.3Fair market value principles (See, Fair market

Value Standard)IRS arguments 8.20Joint tenancy 13.1, 13.2, 13.3Non-participation in estate tax return 8.20Sample estate tax return 38Significance with trust funding and

deductions 3.3, 7A.9 (scenario 4), 8.20, 14.16, 14 Appendix 1, 21.18 (aggregate division of community property), 21.19, 22.1

Five and five power (See, Power of appointment)

FLLC (Family Limited Liability Company) (See, Limited Liability Company/ Family Limited Liability Company)

FLPs (See, Family limited partnerships (FLP)

Foreign death tax creditArt and collectibles 23.2Bank accounts 23.2Canadian income tax 23.1Computation 23.1, 23.2, 23.5Creditable tax 23.1Deposits 23.2Documentation 23.1Form 706-CE 23.7Generally Chapter 23 Ito, Charlotte K. 23.1Limitations 23.1, 23.2, 23.8 (time) Marital deduction 23.3.1Prior transfer tax credit 24.5Proof 23.7Real estate 23.2Situs 23.1, 23.2Three-year rule 23.2Time 23.7, 23.8Transient population 23.1Treaties 23.1, 23.6Valuation 23.4, 23.5

Form 706 (See, Estate Tax Returns (Form 706))

Form 706-ABasis election on recapture 9.10Interest trap with basis election 9.10Partial basis election 9.10Recapture tax reporting 9.9

Form 706-CE 23.7

Form 706 GS(D) 25.1

Form 706 GSD-1 25.1

Form 706 GS(T) 25.1Form 706-QDT 6.2.2, 21.20 (general

discussion)

Form 712 (See, Life insurance)

Form 843 Curing defects 18.5 (under Sec. 2053)Expenses, ancillary to claim 18.5, 39 (sample)Protective or actual refund claims 7.6, 7A.12.1,

7A.12.6, 8.22, 18.3.2, 18.5 (extensive)See, Refund Claims and see Schedule PC

(infra) Form 2848 2.5, 6.4Form 8939 (election for 2010 deaths only)

6.2.1See Chapter 7A of the First Supplement to

First Edition for extensive discussion. Subject not included in Second Edition except as above noted.)

Relief 1.1

Formula clausesCase law supporting formula clauses 6.7.5,

22.7 Charities, use of 6.7.5, 22.7Defined-value gifts 6.7.5, 22.7Fairly representative 21.21, 25.7.2Funding (See, Funding)Gift tax return descriptions 6.7.5GRATs 6.8.1, 6.8.2, 6.8.3 (zeroed out), 6.8.5

(relationship to discounts)GST exemption allocation 25.2, 25.8.4.1,

25.8.12, Schedule R to Chapters 38 and 39 IDGT 6.10Marital deduction 21.13, 21.13.2, 21.15, 21.20,

21.21, illustrated return to Chapters 38 and 40 (portability)

Non-charitable use of, gifting 6.7.5 (Wandry)Portability elections 7A.3.2, 7A.9, 7A.12.6

(after-discovered debt or assets)Public policy arguments 6.7.5, 22.7Foss, Mary Kay 17 Appendix 1

Fractional interest discounts (FIDs)Adjusted taxable gift revision 6.6, 6.7.1Aggregate community property agreements

21.18Alternative reporting approaches with debt

8.16Appraisal industry difficulties with

comparable co-ownership sales 8.16Appraisal specialty 8.13Art and other collectibles 14.17.7Assumable versus non-assumable debt 8.16Blurring entity discounts with co-ownership

discounts 8.16Cases discussed 8.10, 8.16 Characteristics 8.9, 8.16Comfort zone, likely below qualified

appraiser conclusion 8.13Comfort zone, no supporting policy 8.13Comfort zone, practicalities 8.13Common Sense, based on 8.10Community property division 8.20, 21.18

THE OVATION O-15

Comparable sales 8.10, 8.12, 8.16Compare and contrast to entity ownership

discounts 8.16Cross-claim valuation impact 19.2.7Defense against Section 2036 arguments (See,

Retained interests)Fair market value approach 8.16Family attribution irrelevant 6.6, 6.7.1FLPs and LLCs contrasted 8.16Fractional discounts and special-use formula

9.6Generally 8.9Hostile family dynamics 8.13Joint tenancy, no FID 8.14, 13.1, 13.3, 13.5Litigation uncertainty of amount 8.10Mellinger discounts 3.1-3.3, 14.14Negative value and debt 8.18Partition, rejection as sole measure 8.10, 8.11Partition, under estimation of legal fees and

costs 8.11Partition applied as sole measure 8 Appendix

2Partition sales, not fair market value events

8.11Portability elections 7A.9 (See, Valuation

under Deceased Spousal Unused Exclusion Amount)

Recourse versus non-recourse debt 8.16-8.19Red flag 4.6, 8.2, 8.3Relationship to size of interest 8.12Retained interest 8.10 (life estate), 14.4Safe harbor, absence of 7A.10.4, 8.13Sample statement, not an appraisal 8

Appendix 1Special-use and FIDs 9.6, 9.10Stipulation between government and taxpayer

8.10Tiered discounts 14.15Trust funding 3.3, 7A.9 (scenario 4), 14.14,

14.16, 14.17

Frederick’s of HollywoodSignificance to culture and tax savings 3.1Some Like It Hot and never forgetting the

Mellinger case 3.1, 14.14Tony Curtis connection 3.1

Freedom of Information Act (FOIA) 8.13Discovery (See, Discovery)Evidence (See, Evidence)Frost, Whitney 10.13Funeral expenses 18.1, 18.2 (in depth) Celebration of life issue 18.2Claim against estate 18.2Election not required 18.2Family plot 18.2Gross estate exclusion 18.2Liability for payment 18.2Monuments 18.2Perpetual care 18.2Swing item, is not 18.2 Transportation 18.2Wrongful death claims, expense

reimbursement 18.2

Funding Charitable deduction 22.4Closing letters and caution 27.15Credit shelter trust 3.3, 14.17, 21.1Delayed distribution, interest on 18.3.8Discounts on death of first spouse 8.20, 21.18Distribution values 3.3, 7A.9 (scenario 4),

14 Appendix 1 (impact of Section 2036), 21.18, 21.19, 22.4

Formula (See, Formula clauses)Gain recognition 2.6

Hot audit issue 4.6Marital Trust 3.3, 7A.9 (scenario 4), 21.1Mellinger discount protection 3.3, 14.17Pecuniary shares 21.15 (administrative

expenses), 21.19 (valuation for marital deduction), 21.20 (QDOT), 25.7.2 (GST)

QTIP trusts and DSUEA (See, Deceased Spousal Unused Exclusion Amount)

Sale treatment imposed 21.18Section 6166 considerations 27.6Stale trusts 14.1State death taxes 21.1Statutory interest 18.3.8, 25.7.2 (GST aspects)Timing 2.6, 14.1

Future interest gifts (See, Annual exclusion gifts)

Gale, Joseph F., Tax Court Judge 10.8

Gas Interests 14.17.4

Gaw, David 15.11

General partnershipsLack of marketability discounts (See, Lack of

Marketability Discount)Portability elections 7A.8.4.2, 7A.9, 14.20

(disclosure requirements)State law 14.9Valuation (See, Valuation)

General powers of appointment (See, also Power of appointment)Chronological exemption of GST tax 25.3,

25.4, 25.4.2, 25.4.3 (limited power of appointment contrasted), 25.5, 25.4.2

Chronologically exempt GST trusts 25.4, 25.4.2, 25.4.3 (limited power of appointment contrasted), 25.4.2, 25.5

Distinguished from Mellinger discounting 3.1GST and lapsing Crummey powers 25.9.4Property for prior transfer tax credit 24.3Reverse QTIP not available 25.9.1Taxable termination avoided 25.2, 26.6.8

Generation-skipping transfer tax (GST Tax)Adopted persons 25.6.1Ages of non-family members 25.2Allocation 25.1, 25.8.2 (lifetime), applicable

fraction and inclusion ratio 25.8.3, 25.8.4.1 (pre-2001 rules), 25.8.4.2, (post-2000 rules), 25.8.6, 25.8.9 (death), 25.8.12 (relief from), 25.9.1 (not applicable to reverse QTIP election), 25.9.4 (Crummey trust)

Annual exclusion gifts 25.2, 25.6.4, 25.6.9, 25.8.1 (trap on gifts in trust), 25.8.3, 25.8.13, 25.9.4 (Crummey gifts)

Applicable fraction 25.8.3 (discussed in depth), 25.8.4.1, 25.8.4.2, 25.8.3, 25.8.5

Appropriate interest 25.7.2Automatic allocation of GST exemption 25.1,

25.6.4 (GST trusts) AV Date 8.23Basis trade-off 7A.2, (See, generally Estate

planning under Deceased Spousal Unused Exclusion Amount)

Chronological exemption 25.3, 24.4–25.4.3, 24.4, 25.5, 25.9.4 (Crummey trust change)

Collateral relatives 25.6.2Crummey gifts (or Crummey powers) 25.1,

25.2, 25.6.4, 25.7.3 (multiple transferors), 25.8 (exclusions and exemptions), 25.8.6 (timely or late allocations), 25.8.10 (ETIP), 25.9 (identity of transferor), 25.9.4 (lapsing power problem)

Death (transfer or distribution in 2010) 25.1Deemed allocation of GST exemption (See,

Generation-skipping transfer tax, Automatic allocation)

Direct skip 25.6, 25.6.1, 25.6.4, 25.6.5 (defined), 25.6.6 (multiple), 25.6.7, 25.8.1 (annual exclusion gifts), 25.8.2, 25.8.3, 25.8.4.1 (pre-2001 rules), 25.8.4.2 (post- 2000 rules), 25.8.5, 25.8.9 (deemed allocation rules), 25.9.1, 25.10 (Schedule R completion)

Discounts to enhance GST exempt trust 8.20DSUEA 2.1, (See, Deceased Spousal Unused

Exclusion), 25.2Election out of GST exemption 25.2

(strategic), 25.6.4 (GST trust), 25.6.7 (health and education trusts), 25.8.4.1, 25.8.4.2, 25.8.6 (late allocations), 25.8.12 (relief from late allocation), 25.9.4

Erroneous elections (or non-elections) 25.8.1, 25.8.4.1, 25.8.4.2, 25.8.5, 25.8.6, 25.8.8 (relief), 25.8.12, 25.8.13, 25.9.1

ETIP 25.8.5, 25.8.10 (extensive)Exemption 6.1, 25.2, 25.3 (chronological),

25.4.1 (actual additions), 25.5, 25.6.3, 25.6.4 (GST trusts); 25.6.7 (taxable termination); 25.6.9 (trusts), 25.7.1 (qualified severance), 25.7.2 (pecuniary bequests and gifts), 25.8 (exclusions and exemptions), 25.8.2 (lifetime allocations), 25.8.3. (applicable fraction and inclusion ratio), 25.8.4, 25.8.4.1 (pre-2001 deemed allocation rules), 25.8.4.2 (post-2000 deemed allocation rules), 25.8.5 (timely allocation), 25.8.6 (late allocation), 25.8.8 (relief), 25.8.9 (death allocation), 25.8.10 (ETIP), 25.8.11 (excessive), 25.8.12 (relief on death), 25.8.13 (low-cost relief on death), 25.9.1 (reverse QTIP election), 25.9.4 (Crummey trusts changing transferor), 25.10 (allocation on Form 706), Chapter 38 (sample return with discussion regarding transmission expense waiver)

Extension of time to file and pay GST tax 5.5Family generation assignment 25.6.1Five and five power 16.1, 16.3, 25.6.4, 25.9.4Form 706 GS(D) 25.1Form 706 GS(T) 25.1Form 706 GSD-1 25.1Formula allocation of GST exemption 6.7.5

(defined value gifts), 25.2, 25.8.4.1, 25.8.11 (excessive allocation), 25.8.12 (relief), Attachment to Schedule R to Chapter 38

Generation-skipping transfer tax trusts as preferred owners of FLP and FLLC interests 14.6

Generational assignment 25.2, 25.6, 25.6.1, (See, Skip person and Non-skip person under Generation-skipping transfer tax); chart on generational assignment under family and non-family rules 25.6.1

GRATs 25.8.10 (ETIP)GST exempt trusts (See, Inclusion ratio)GST trust 25.6.4 (defined), 25.8.2, 25.8.4.2

(discussed extensively), 25.8.12 (allocation relief)

Harrington, Carol, 25.1Highlight list 25.2Identity of transferor (See, Transferor, under

this heading)Inclusion ratio 25.2 (problem with mixed

ratios), 25.4.1 (chronological exemption), 25.6.4 (GST trusts), 25.7.1 (qualified severance), 25.8.3 (calculation), 25.8.4.1, 25.8.4.2, 25.8.5, 25.8.6 (late allocation), 25.8.7, 25.8.9 (allocation on death), 25.8.11 (excessive), 25.8.12 (late), 25.9.1 (reverse QTIP election), 25.9.4 (lapsing Crummey), 25.10 (reporting), Schedule R to sample return to Chapter 38

Joint and survivor annuity election 17.5Lapsing Crummey powers 16.9Late allocation on gift tax return 6.6, 25.2,

25.8.6 (extensive), 25.8.7 (strategic approaches), 25.8.8, 25.8.12 (relief),

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-16

25.8.13, 25.9.1 (reverse QTIP), 25.9.4, 25.11Legislative purpose 25.1Life insurance 12.8, 25.2, 25.6.9 ($250,000

rule), 25.8, 25.8.6 (late allocation of GST exemption), 25.8.9 (exemption allocation on death), 25.10 (Schedule R), Form R-1 to sample return to Chapter 39

Listed transaction 25.1Mailing and late allocation of exemption

25.8.6Marriage and generation assignment 25.6.1Modifications and alert 25.5Mortality and valuation of life insurance

25.8.6 Move-down rule 25.9.3Multiple generations 25.6.1Multiple skips 25.6.6Non-exempt trusts (See, inclusion ratio)Non-skip person 25.2 (planning), 25.6

(GST events and illustration), 25.6.1 (classification), 25.6.3 (entities), 25.6.4 (GST trust), 25.6.5, 25.6.7 (taxable distribution planning), 25.6.8 (taxable termination), 25.7 (separate shares), 25.7.1, 25.8.3, 25.8.4.1, 25.8.4.2, 25.8.8 (allocation with relief), 25.9.1 (reverse QTIP), 25.9.2, 25.9.3, 25.9.4

Non-taxable transfers 25.2, 25.7 (separate shares), 25.8.1 (extensive discussion), 25.8.2, 25.9.4

Notices 25.6.4 (GST trusts and election for or against automatic allocation), 25.7.1 (qualified severance), 25.8.4.2, 25.8.13

Options (or puts) 10.13APecuniary bequests 25.7.2, 25.11 Power of appointment 16.3, 25.2 (general

power avoids GST tax), 25.4.2 (constructive additions to chronologically exempt trust), 25.6, 25.6.4 (GST trust exception), 25.6.8, 25.8.1 (annual exclusion gifts in trust), 25.9.1 (general power contrary to reverse QTIP election), 25.9.4 (lapsing Crummey powers)

Predeceased-ancestor rule 25.6.2Qualified personal residence trust 25.8.5,

25.8.10 (ETIP)Qualified severance 25.7.1 (extensive), 25.8.9Rate 25.1Retirement plan distributions 17 Appendix 1Rev. Rul. 2004-46Reverse QTIP election 7A.6, 7A.9, 7A.12.6,

25.2, 25.7.1, 25.8.10 (ETIP), 25.8.11, 15.9, 25.9.1 (extensive discussion), 25.10 (completing Schedule R)

Schedule R-12 25.6.9 ($250,000 rule), 25.8.9 (exemption allocation on death), 25.10 (Schedule R), Form R-1 to sample return to Chapter 39

Section 6166 applicability with direct skip 27.2.2

Separate shares 25.2, 25.6.4, 25.6.7, 25.7 (extensive), 25.7.1 (qualified severance), 25.7.2 (pecuniary bequests), 25.8.1, 25.8.4

Skip-person and non-skip person 25.4.1, 25.6 (GST events), 25.6.1 (skip persons and non-skip persons defined), 25.6.2 (predeceased ancestor rule), 25.6.3 (generational assignments with trusts)

Split-gifts and GST 25.9.2Step children 25.6.1Survivorship 25.6.5Taxable distributions 25.1 (strategic), 25.6

(GST events), 25.6.2, 25.6.7 (defined), 25.6.7 (education exception), 25.8.3, 25.8.4, 25.8.7, 25.8.9 (death allocation), 25.8.13, 25.9.3 (move-down rule), 25.10 (reporting on Schedule R)

2010 distributions or terminations 25.1Taxable termination 25.1 (reporting form),

25.6,2 (predeceased ancestor), 25.6.7 (taxable distribution distinguished), 25.6.8 (defined), 25.7.1 (result of non-qualified severance), 25.8.3-25.8.5, 25.6, 25.8.7, 25.8.9 (death allocation), 25.8.13, 25.9.3 (move-down rule), 25.9.4 (Crummey trusts results), 25.10 (exemption allocation on Schedule R)

Taxpayer disclosure rights 8.14Transferor 25.2, 25.4.1, 25.4.2, 25.6.5, 25.7.3

(multiple transferors to a single trust), 25.9 (identity of), 25.9.1 (reverse QTIP), 25.9.2 (gift splitting), 25.9.3 (move-down rule), 25.9.4 (lapsing Crummey powers)

Trusts defined 25.6.9Uniform Transfers to Minors Accounts 25.6.9,

25.8.1Valuation 25.2, 25.8.5 (timely allocation),

25.8.6 (late allocation), 25.8.8 (relief), 25.8.9 (death)

Vested trust for annual exclusion 25.1, 25.8.1 Gift tax assessments 6.6, 6.9

Gift tax liabilityAdequate disclosure requirement 6.6, 6.9, 6.11Calculating 6.2, 6.2.1 – 6.2.6, 6.3Clawback 6.2.2, 7A.8Estate tax deduction 19.2.10Estate tax return credit 6.6, 4.6, 6.2.3, 6.2.5,

6.7.11.3, 6.8.6, 7A.8.4.6, 15.7, 23.3.1 (pre-1977 gifts)

Exclusion amount 1.2, (See, Applicable exclusion)

IDGTs 15.11Phantom asset 15.6, 21.8Pre-1997 rules when any gift reported 6.2,

6.12, 7A.12.4Prior gifts 6.2, 6.2.3, 6.2.4, 7A.14, 7A.14.1Rate reduction with 2012 Tax Act1.2, 2.1, 4.3,

6.2.1, 6.2.2, 6.2.4Splitting, gifts 6.2.6Statute of limitations change after August 5,

1997 6.6Tax exclusive 15.6Three-year rule (See, Three-year rule)

Gift tax returnsAdequate disclosure 6.6, 6.9, 6.8 (GRATS),

6.11 (SCINs), 14.6 (retained interests), 14.14 (amending returns for adequate disclosure)

Adjusted taxable gifts (See, Adjusted Taxable Gifts)

Allocation date for GST exemptions 25.8.6Assessment of tax 6.6Basic exclusion amount 6.2.1, 6.2.4 (Table 1

for history)Calculation 6.2.4, 6.2.5, 6.3 (expanded), 15.6Curing for unreported gifts 6.6Defined-value gift description 6.7.5DSUEA availability (See, Deceased spousal

unused exclusion amount, generally), 6.2.1, 6.2.2, 6.2.4, 7A.14, 7A.14.1

Exemptions 1.2, 6.2.3, (See, Applicable credit amount and Applicable exclusion amount headings)

Expanded IRS search for unreported gifts 6.5, 6.5.2, 6.6

“Fat” gift tax returns recommended 6.4 (See, Adequate disclosure in this topic)

Form 8275-R (disclosure of position contrary to regulation) 19.3.1

Gross-up and Schedule G 15.2GST reporting 25.2, 25.6.4 (GST trust),

25.8.4.1, 25.8.4.2, 25.8.6 (mailing date), 25.8.8, 25.8.11, 25.8.12, 25.8.13, 25.9, 25.9.4, 25.10 (Schedule R)

IDGTs 15.11Income tax return view 6.4

Late filing benefit with GST exemption allocation 6.6

Liability (See, Gift tax liability heading)Retained interest, full and adequate

consideration sever retained interests (6.8, 14.14), 14 Appendix 1

Returns, request prior returns from IRS 6.4Sales, reporting for adequate disclosure 6.9Splitting gifts 6.2.6Tax Act of 2012 impact 6.2.1, 6.2.2, 6.2.3Three-year rule (See, Three-year rule)Transcript requests to IRS 6.4, 15.7Uncertainty of filing prior returns 6.4, 6.5,

6.5.2

GiftsAdequate disclosure and assessment period

6.6Adjusted taxable gifts (See, Adjusted taxable

gifts)Annual exclusion gifts (See, Annual exclusion

gifts)Assignee interests (See, Assignee interests)Bank accounts and joint tenancy 13.3, 13.4Check delivery date 6.7.1, 19.5.1Completed transfer 6.5, 6.9, 13.3Consenting spouse (See Splitting, gift under

this heading) Conservation easements 26.2, 26.3.2, 26.6

(valuation), 26.7Crummey gifts (See Crummey trusts and

Generation-skipping transfer tax)Defined-value gifts 6.7.5Distribution preferences 14.11Documentary transfer tax 6.5.2FLPs (See, Family limited partnerships (FLPs))Form 709 (See, Gift tax returns)Formula clauses (See, Formula clauses)Gift loans 11.4, (See Loans)Gift tax phantom asset 15.6, 21.8Gift tax returns (See Gift Tax Returns)Grantor Retained Annuity Trusts (See, Grantor

Retained Annuity Trusts)IDGTs 6.8.8, 6.10, 15.11Indirect gifts 6.7.3, 14.6, 14 Appendix 1 Ineffective gifts 6.5, 6.5.1, 6.5.3Joint tenancies 13.3, 13.4Lapsing Crummey powers 16.7, 16.8Living trust gifts 15.8LLCs (See, Family limited partnerships (FLPs)

and Limited Liability Company (LLCs))Loans, lacking bona fides 6.5, 11.4 (below-

market rate treatment)Net gifts, 6.7.11 and subparts: 6.7.11.1(income

tax considerations with basis), 6.7.11.2 (3-year rule), 6.7.11.3 (line 7 credit)

Non-qualified joint tenancies, contribution rule 13.3-13.5

Non-taxable gifts 6.3Notice 2009-19, 2010 treatment 6.1Post-death gift 22.7, (See, Post-death facts)Power of appointment 6.5.3Power of appointment release or exercise

6.5.3 (retained powers) 16.3, (See, Power of Appointment)

Power of attorney 6.5, 15.3Private annuities and gift avoidance 17.3Promissory note valuation 11.4QTIP remainder 15.5.5A, 15.5BQTIP sales 14.6, 15.5.A (expanded

discussion), 15.5.B, 21.13.2, 21.22 (expanded)

Qualified disclaimers (See, Qualified disclaimers)

Qualified education and medical gifts 6.3Real estate under reporting 6.5.2

THE OVATION O-17

Rescission 6.7.4Revocability of joint tenancy accounts 13.3Self-cancelling installment notes (SCINS) 6.11Splitting, gift 6.2.6 (generally), 25.9.2 (with

GST)State law’s significance 6.5.1, 6.7.4, 14.6

(Effectiveness of transfers to FLP and LLC), 14.7, 15.2, 15.3

Step-transaction doctrine 6.7.3, 14.6, 14 Appendix 1

Substantial and legitimate non-tax purpose conflict 14.6 (1st factor)

Substituted judgment 15.3Three-year rule (See, Three-year rule)Trojan horse comparison 6.1Uniform transfers to minors (See, Uniform

transfers to minors)Unreported gifts 6.4, 6.5, 6.5.2 (real estate)

Goodwill (See, Stock and bond valuation)

Goodwin, Rod 16 Appendix 2Lapsing withdrawal rights, ownership 16.6Graetz, Michael J. 1.1

Grantor Retained Annuity Trusts (GRATs)Annuity payments (graduated, unitrust) 6.8

(expanded coverage with subsections), 15.9

Death of grantor, timing 6.8.6, 15.9 Defective trust features 6.8.8Defined-value gift 6.7.5Discounts, relationship to 6.8.5Discussed extensively 6.8 (and subsections) Duration 6.8.4Estate tax inclusion period 25.8.5, 25.8.10 Features or requirements 6.8.1, 6.8.2Hot audit issue 17.1Income tax payments 6.8.7Regulations, November 7, 2011 6.8.6, 15.9 Same gender marriages 6.8.1Valuation 6.8 (and subsections for extensive

discussion), 15.9Zeroed out 6.8.3, 15.9

GRAT (See, Grantor Retained Annuity Trust)

Gregor, Vanessa 25.8.12, 22.9 Charitable Lead Annuity Trust (CLAT)

compared to Section 6166 deferral 22.9

GST and GST Tax (See, Generation-skipping transfer tax)

GuarantyDebt in excess of property value 8.16, 8.18Gustafson, David Tax Court Judge 8.7 Haines, Harry A., Tax Court JudgeHypothetical willing buyer and willing seller

8.2Halpern, James S, Tax Court JudgeLack of evidence from taxpayer 8.7Partition with FID Chapter 8, Appendix 2Passion as valuation element 8.20

Harl, Professor Neil E. Assistance from 9.2Basis trap with Section 1016(c) elections 9.11Crops-real or personal property for special-

use calculation 9.3Debunking claim that estate tax forces sale of

family farm business 9.1Discretionary trusts 9.3Estate planning 9.14, and part of other

referencesExperience and books 9.2Formula with discounts 9.6Limited application of special-use elections

9.2

Material participation, pre-death 9.8Maximizing special-use and FIDs 9.6Partial special-use elections 9.4.4Post-death event planning concerns 9.12Present interest requirement 9.3Regulatory conflict with Special-Use Election

9.4.4Harrington, Carol A. 25.6.4, 25.9.4

Higgins, Mark Promissory note valuation 11.3S Corporation value 10.5A

Hirschson, Linda B.Charitable giving 22.8Joint tenancies 13.1State death tax and QTIP 21.1 (state death tax

and QTIP) Holmes, Mark V. Tax Court Judge 8.7, 14.6,

22.3

Hot audit issuesAnti-Kohler Regulations 8.23Audit probability 4.3-4.3.4Effective discounts 8.5Foreword by John SchoolerFormula clauses 6.7.5FLPs 14.1-14.8GRATs 17.1GST 25.1 (Author’s special-attention points)Listed 4.6Non-qualified joint tenancies 13.2-13.5Private annuities 17.1QTIP not on surviving spouse’s return 4.6Valuation as a profile issue 8.2Hunter, Hugh V. CPA 3.1

Hutton, William T. 26.2, 26.3.2

IDGT (Intentionally Defective Grantor Trust) (See, Intentionally Defective Grantor Trust)

ILIT (Irrevocable life insurance trusts) (See, Irrevocable life insurance trusts)

Incidents of ownership 12.1 (See, also Life insurance)Avoiding 12.3Credit shelter trust 12.6Cross-trusts 12.5, 15.1Reversion of Rights 12.3

Inclusion ratio (See, Generation-skipping transfer tax)

Income in respect to a decedent (IRD) Accrued taxes on interest 11.2Built-in gain, deduction treatment 10.16Marital deduction, tax payment allocation

21.18Portability elections 7A.2, 7A.3.5, 7A.9,

7A.10.1, 7A.10.4

Income tax issuesBlack Swan (no free lunch) 7A.2Portability elections (See, Estate planning

under Deceased Spousal Unused Exclusion Amount)

GRATs 6.8IDGTS (See, intentionally defective grantor

trusts)Promissory notes 7A.2, 11.3QTIP trusts 2.5, 7A.2 (See, Estate planning

under Deceased Spousal Unused Exclusion Amount)

Swing item elections 7A.2, 18.2, 18.3.2, 18.4, 21.15, Chapter 38 with illustrated return and Chapter 40 with portability return

Individual retirement accounts (IRAs)Annuities 17.1, 17.2.1Community property 17.5Denial of estate tax return for income tax

liability 10.6Marital deduction treatment 21.16QDOTs 21.20Roth IRAs (See, Roth IRAs)Slott, Ed 17 Appendix 1Trytten, Steven E. 17 Appendix 1

Intentionally defective grantor trusts (IDGTS)Attachment to report transfers 15.13 Complexities 15.11Defects 15.11Discussed generally 15.11Income tax treatment 6.8.8, 15.11, 16.1 Gaw, David, 15.11Lapsing Crummey powers 16.6 Opportunities 6.8.8, 15.11Question 12e to the estate tax return 15.13 Retained interest 14.4Substitution of property 6.8.2, 6.8.8, 15.11

Interest deductionAdministrative expense deductibility 18.3.6,

27.2.2 (Section 6166), 27.7Denial on individual return for tax payments

9.10, 18.3.6Section 6166 27.2.2 Statutory interest on bequest 18.3.8

Interest on tax dueOrdering of Payments 5.8

Interest rates (See, Applicable federal rate. See also, Promissory notes)Special-use and AV Date 9.7

Investment FLPs (See, Family limited partnerships (FLPs))

Irrevocable life insurance trusts (ILIT) (See also, Life insurance)Avoiding incidents of ownership 12.3 Cross-trusts 12.5, 15.1Estate tax exclusion potentialGST considerations 25.2, 25.7.3, 25.8.5, 25.8.6,

(late allocations of GST exemption), 25.8.7, 25.8.8. 25.9.4 (lapsing Crummey powers)

Ito, Charlotte K. 23.1 (Foreign death tax credit)

Johnson, David Cay 9.1

Joint tenanciesBank accounts 13.3Citizenship requirement for qualified joint

tenancy 13.3Co-ownership contrasted 13.1, 13.3, 13.5 Consideration received 13.3, 13.5Creditors 13.1Death-bed terminations of joint tenancies 13.1Debt as contribution 13.3Disclaimers 13.6Estate planning negatives 13.1, 13.3, 13.4,

13.5, 13.7 Evidence of contribution 13.3FID denied 8.14, 13.1, 13.3General warning against use to save probate

costs 13.1Gifts not contribution 13.3Gifts, effectiveness 13.3Hirschson, Linda B., 13.1Hot audit issue 13.1 Includible value 13.3-13.5Marital deduction and non-citizen spouse

21.20

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-18

Minority interest discounts jeopardized 10.11Nominee account, distinguished 13.4Non-qualified joint tenancies 13.1 (hot issue),

13.3 (contribution), 13.5Portability elections 7A.9, 13.7Presumption of full inclusion with non-

qualified joint tenancies 3.3, 13.5QDOT treatment extended 21.20Qualified disclaimers 13.6, 21.23Qualified joint tenancy 13.1, 13.2

(requirements), 13.3Reporting 13.2 (See Schedule E) Same-sex marriage (refund) 13.3AServices as contribution 13.3State law treatment 13.1, 13.4Tax and non-tax negatives 13.1, 13.7Tenancies by the entirety 13.2 (this heading

generally)

Jones, Michael Commentary 17 Appendix 1Commentary, IRAs and Anti-Kohler

Regulations Communication concerns 17 Appendix 1Credit (phantom) with gift tax 6.2.5Designated Roth-IRA trusts 17 Appendix 1Distribution planning 17 Appendix 1Introduced 17 Appendix 1 Net-gifts 6.7.11.2 (3-year rule)Phantom DSUEA 7A.8.4.6Portability planning 7A.3.5 (and chart)Pre-death planning 17 Appendix 1Roth IRAs Chapter 17 Appendix 1

Kasner, JerryCrops- real or personal property for Special-

Use Calculation 9.3Kizor, Alan 17.7

Lack of marketability discountsAssignee interests (See, Assignee interests) Built-in gain deduction 10.5Charitable planning 22.9, 22.10Closely-held stock 10.9Confused with FIDs 8.5General partnership valuation 14.9LLC cases 14.13, See, 14 Appendix 1Lottery winnings 17.5Mandelbaum factors 10.9Mellinger discounts 3.1-3.3Partnership cases 14.13, 14 Appendix 1QTIP trust relationship 3.2-3.3Safe harbor lacking 10.10Special-use elections and discounts 9.6State law impact with partnerships and LLCs

14.8, 14.9Trust funding to preserve or maximize 3.3Valuation (See, valuation)

Lackner, Vincent Phantom DSUEA 6.2.5, 7A.8.4.6, 19.5.8

(software regarding state death tax deduction)

Lapsing power or lapsing Crummey power (See, Power of appointment)

Laro, David Tax Court JudgeDaubert challenge 8.7Lack of Marketability Discounts 10.9Mandelbaum Case 10.9Mel Abraham 8.4Strategic Buyer/Valuation 8.2

Late filing penaltyAbatement 5.6Amount Five percent per month, or part 5.6

Calculation 5.5Domicile outside U.S. 5.1Extend time to file 2.5, 5.4Generally 5.1Incorrect advice 5.6Minimization 5.6Non-delegable duty 5.1, 5.6 Ordering of Payments 5.8Part of a month 5.6, 5.7Reasonable cause defense narrowly construed

5.6Receipt date applies 5.7Separate extension from late payment 5.5Stern application of time 5.1Time of filing 5.7

Late payment penaltyAbatement 5.6Calculation 5.8Extend time to pay 2.5, 5.4Generally 5.8Interest not added to late payment penalty

(See, helpful hint in 5.8)Ordering of Payments 5.8Reasonable cause 5.8Separate extension from late filing 5.5

Law, Lester Phantom DSUEA 6.2.5, 7A.8.4.6Leased-fee interests 8.3Leigh, Vivian 8.1

LiensRecapture tax, special-use 5.6, 9.4.1, 9.12Section 6163 extensions 5.6Section 6166 deferrals 5.6, 27.8 (extensive),

27.9Special-use recapture planning considerations

9.12Statutory lien extended by payment extension

2.5, 5.6Unrecorded lien 27.8

Life estateCharitable gift, split-interest 22.4.1Life estate 15.2Marital deduction 21.2, 21.11, 21.22Retained interest 8.10 (life estate), 14.4Three-year rule (See Three year rule)

Life insuranceAnnuities contrasted 17.2.1Biggest loophole in estate tax law 12.1Cross-trust doctrine 12.5, 15.1Entity as beneficiary 12.3Entity as owner 12.2Exceptions to exclusion from gross estate 12.1Form 712 4.5, 4.6 (audit trigger if missing),

7A.9 (simplified reporting), 12.11 (portability), Chapters 38-40

GST 12.8, 25.2, 25.8, 25.8.6 (late allocation of GST exemption), 25.8.9 (exemption allocation on death)

GST reporting 25.6.9, 25.10, Form R-1 to sample return to Chapter 39

GST trust definition 25.6.9Incidents of ownership 12.1, 12.3 (avoiding)Income replacement 12.12Marital deduction issues 12.4Net investment income tax 12. 10Partnerships 12.7Portability elections 12.11Prior transfer tax credit 24.4Probabilities 12.1QDOTs 12.3, 21.20Reversion of Rights 12.3

Spouse as beneficiary 12.4Three-year rule 12.1, 15.1, 15.2Under-purchased asset 12.12

Limited Liability Companies (LLCs and Family Limited Liability Company (FLLCs)) (See, Family limited partnerships (FLPs) generally)Annual exclusion problems 6.7.3, Built-in gain deduction denied 10.6Charitable planning 22.9, (See also, Charitable

lead annuity trusts, Charitable gifts, Unrelated business taxable income)

Discount cases 14.13Discount guidelines from IRS 14.13Discounts may be less than with FIDs if

property in debt 8.17Distribution preferences 14.11Funding value to marital or charitable

deduction 7A.9 (scenario 4), 14 Appendix 1, 21.19, 22.7, 22.8

Generally Chapter 14Indirect ownership test for conservation

easement 26.5Restrictive Agreement, Section 2703 10.14,

10.15Retained interests (See, FLPs and Retained

interests)Risk of adding existing business to an LLC

with Section 2036 issues 10.20State law factors 14.7, 14.13Step transaction 6.7.3, 14.6, 14 Appendix 1Valuation 14.13, 14 Appendix 1

Living trustsCategory one deductions if subject to claims

19.2, 19.2.4, 19.4, 20.1Direct gifting 15.8Reporting alternatives 15.1Trusts (See, Trusts)

Loans (Promissory Notes)Applicable Federal Rate (AFR) 6.5.1, 6.8

(120% for GRATS), 11.3, 11.4 (Gift loan defined and imputed treatment)

Absence of Promissory Note 11.3Audit, triggering 8.7Bona fides, family loans 6.5, 6.5.1, 11.3Checklist for family loans 6.5.1Comparability under Section 2703 6.5.1Consistency, Duty of 11.3, 11.4 (inconsistency

between gift and estate tax valuation)Controlled-company life insurance 12.1Discounts 7A.2 (alert), 11.3, 11.4Equity, Disguised 11.3Family loans 6.5.1, 11.3, 11.4, 14.6 (FLPs),

Chapter 14, Appendix 1Higgins, Mark 11.3IRS Valuation Guide 11.2 (promissory notes)Life insurance (See, Life insurance)Loan vs. Gift 6.5, 11.3No-prepay loans 8.16 (impact on valuation),

18.3.6 Promissory notes (See, Loans this heading)Situs 23.2State law 6.5.1, 11.3Valuation 11.3, 11.4

LossesCasualty 20.2Deduction (estate vs. income tax) 20.2Embezzlement 20.2Portability elections 20.4

Marital deductionAlternatives for qualification 21.2, 21.9Asset in gross estate 21.2

THE OVATION O-19

Avoidance potential 2.3 (extend time to file and pay to determine)

Business agreement restrictions 10.17Common law marriages 21.1Community property division 21.17

(community property and retirement plans), 21.18

Conservation easement planning 26.3.3Contests (or disputes) 21.24Deductions paid 18.4, 21.4Defense of Marriage Act (See, Defense of

Marriage Act)DSUEA 2.1, 2.2 (counter-intuitive approach

for many), 3.1, 6.2.2, 7A.2, (See, Deceased Spousal Unused Exclusion Amount)

Election 21.2, 21.13 (who controls)Equitable recoupment 21.11.2Estate trusts 21.9.1Foreign death tax credit 23.3.1Formula clauses 21.13, 21.13.2, 21.15,

21.20, 21.21, 25.9.1 (GST exemption and illustrations), Schedules M and R to Chapter 38

Funding values 3.3, 21.18, 21.19, 14 Appendix 1 (funding values)

IRAs and QTIPs 17 Appendix 1, 21.17Life insurance and spouse 12.4Litigation or settlement result 21.24Mellinger and QDOT 3.1, 21.9Net income requirement with trust 21.11, 21.2Non-U.S. citizen spouse (See Qualified

Domestic Trust or QDOT) Phantom asset problem 15.6, 21.8Planning oversights 21.2, 21.3Portability election, effect on DSUEA 21.25,

(See, Transmission expenses under Deceased Spousal Unused Exclusion Amount)

Prior transfer tax credit 2.3, 2.4, 24.2, 24.3, 24.5 (chart)

Qualified disclaimers 21.23Qualified domestic trusts (See QDOTs)Qualified terminable interest property (See

QTIP)Re-marriage condition contrary to deduction

21.4Retirement plan distributions 17 Appendix 1Reverse QTIP election 25.9.1 (GST)Sales of remainder in QTIPs 3.3, 14.1, 14.6,

15.5A, 15.5B, 21.22Same sex couple, issue of availability (See,

Defense of Marriage Act)Sample returns with marital deduction 38

(large estate), 40 (portability)Separate share 21.7Settlement of dispute 21.24Simultaneous death 21.2, 21.4Specific portion 21.7State law 7A.9 (state death taxes and

simplified reporting), 21.1 (marital deduction), 21.23, 21.24

Stub income 21.11.1Surviving spouse requirement 21.1, 21.2Survivorship condition 21.1, 21.2 (discussed

and caution with portability), 21.4 (general discussion)

Swing items 18.2, 18.3, 18.4, 21.15 (extensive discussion), 38 (illustrated return first spouse death with transmission expenses waived), 40 (illustrated portability return with transmission expenses waived)

Tax allocation 21.8Terminable interest rule 21.5Time of survivorship 12.2, 12.3Transmission expenses 7A.2, 21.8, 21.15

(extensive), 38 (illustrated return first spouse death with transmission expenses

waived), 40 (illustrated portability return with transmission expenses waived)

U.S. citizenship 21.2, 21.20 (See QDOT)Uniform Principal and Income Tax 21.5

(terminal interest rule), 21.6, 21.11.1 (net income)

Uniform Simultaneous Death Act 21.4Uniform Tax Apportionment Act 21.8Unproductive property 21.6, 21.21

Marital Trust Family limited partnership planning 14.6

(narrow retained interest), 14.7 (unfunded trusts)

General power of appointment trust and QTIP compared 15.5 - 15.5B, 21.9.2

Material participation issues with special-use elections 9.8

Non-tax considerations 2.1, 7A.2, 7A.3.1Portability elections (See, Deceased Spousal

Unused Exclusion Amount)Prior transfer tax credit considerations (See,

Prior transfer tax credit)QDOT 21.20, (See, Qualified domestic trusts) QTIP (See, Marital deduction and Qualified

terminable interest)Rev. Proc. 2001-38 7A3.4, 7A.6, 21.9.2, 21.10,

21.13Revocation 15.2Skip person classification 25.6.3State law and amount subject to claims 20.1Transfer of interests, 15.5 - 15.5CUnfunded trust 14.7

Material participation (See, Special-use valuation)

Mattoon, Steven F. Farm rental comparisons 9.5Mineral, Oil and Gas Interests 14.17.4Plains-states experiences 9.2Problems qualifying for special-use elections

9.2Special-use elections 9.2Mausoleum 18.2McCaffery, Edward J. Mausoleum 1.1Mellinger Trust 3.3 (See also QTIPs)

Mineral, Oil and Gas Interests 14.17.4

Minimum distribution requirements (See, Retirement planning)

Minority interest discountsCases surveyed 10.8, 14.13Charitable planning 22.9, 22.10Community property 10.11, 21.18Confused with factional interest discounts 8.5 LLC cases 14.13, 14 Appendix 1Mellinger discounts 14.14Partnership cases 14.13 President Obama 10.8QTIP trust relationship 3.2-3.3Special-use elections and discounts 9.6Trust funding to preserve, maximize, or avoid

3.3, 14.7

Monroe, Marilyn 3.1, 25.12

Morris, Charles W. Audit selection 4.2, 4.4“Fat” estate tax return recommended 4.2Filing responsibilities 5.3Late filing penalties 5.6Non-qualified joint tenancies 13.3-13.5Presentation of estate tax return 4.2Specialists recommended 1.4Afterword, O-1

Multiple ExecutorsGenerally (See Executor)Portability elections (See Deceased Spousal

unused exclusion amount)Return signing 5.3Nenno, Richard Delaware trusts 15.12, 16.1

Net Investment Income (NII) (See, Obama-Health Care)

New, LorraineAudit selection 4.4, 4.6Penalties 8.7Return processing 4.4

Non Resident CitizensFiling deadline 5.1

Notice of Deficiency (See Appeals)

Notice regarding GST (See, Generation-skipping transfer tax)

Obama Health Care (formally named Patient Protection and Affordable Health Care Act)Life Insurance 12.10Promissory note discounts 7A.2, 11.3Swing-item elections 7A.2, 18.3, 18.4, (See,

Transmission expenses under Deceased Spousal Unused Exclusion Amount), 40 (including illustrated return)

Tax on investment income 7A.3.3, 7A.3.5, 7A.3.6, 12.10

Oil and Gas Interests 14.17.4Options 10.13A

Paintings (See, Art, valuation of)

PartnershipsCharitable giving 22.6FLPs (See, Family Limited Partnerships (FLPs))General partnerships (See, General

partnerships)Indirect ownership test for conservation

easement 26.5Life insurance ownership 12.3Limited Partnerships (See, Family Limited

Partnerships (FLPs))Mineral, Oil and Gas Interests 14.17.4Portability, returns electing 7A.8.4.2

(portability), 7A.9 (portability)State law significance 14.6, 14.7 (title

transfers), 14.9, 14 Appendix 1Valuation cases 14.13

Patient Protection and Affordable Health Care Act (See, Obama Health Care)

PenaltiesAbusive quality when regulations conflict

with judicial decrees 19.3, 19.3.1Duty to file 5.3Failure to file 5.3Late filing (See, Late filing penalty)Late payment penalty (See, Late payment

penalty)Negligence 19.3.1Preparer 8.7, 19.3.1Undervaluation 8.7Unreported gifts 6.4, 6.5, 6.5.2

Pennell, JeffreyConsideration offset with retained interest

14.4Gift tax gross up 15.6Marital deduction 21.4 (survivorship

requirement)

Pensions (See, Annuities)

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-20

Perpetual care (See, Funeral expenses)

Portability (See, Deceased spousal unused exclusion amount)

Porter, John 7.1

Post-death factsAdministrative expense deduction regulations

(See Administrative expenses)Administrative expense deductions 18.1,

18.3.2Administrative law priorities 19.3Amount deductible 19.2.3Avoid sales if reported value helpful 8.6, 8.2,

8.6Circuit court split view with administrative

expenses, claims and debts 18.1, 19.1, 19.2, 19.2.1, 19.2.3, 19.2.4, 19.6

Debts Chapter 19 (generally)Exception for large deductions 19.2Exception if deduction under $500,000 19.2,

19.2.9Exceptions to general rule for valuation 8.6Financial conditions and prospects 10.4Formula clauses 22.7General rule of irrelevancy 8.6Known, knowable or reasonably foreseeable

8.3, 8.6Mortgage treatment unchanged by October

2009 regulations 19.2.6Regulations for Schedule J, K, and L

deductions questioned 18.3, 18.3.1, 19.1, 19.2, 19.2.1, 19.2.3, 19.2.4, 19.3 (extensive discussion), 19.3.1 (disclosures), 19.6

Relevancy of post-death facts, debts 18.1, 18.3.2, 19.2-19.2.7

Relevancy of sales to valuation 8.6 Reporting, or not required 19.2Tax deductions 19.2.10

Power of appointment Ascertainable standard exception 16.1, 16.2Basis, income tax planning for 2.1, 7A.3.2,

7A.5Cline, Christopher P. 16.8Contrasted to limited power of appointment

16.1, 16.2Contrasted to Sections 2036 and 2038 retained

interests 16.1Creditor protection planning 16.1Defined 16.1Defined-value gifts 6.7.5Delaware trusts 16.1Elements 16.2Estate tax inclusion of lapse 16.2, 16.8Estate tax return questions 16.1Exercise 16.3Fiduciary as power holder 16.1Five and five power 16.1, 16.3 (release

exception), (See Generation-skipping transfer tax and in particular 25.6.4 and 25.9.4)

Formula clauses 6.7.5General power of appointment, 7A.3.2, 7A.5,

7A.7 (detailed), 7A.8.3.1, 16.2General power/limited power contrasted 16.1 Gift tax consequence of release 16.7, 25.9.4 Goodwin, Rod 16 Appendix 1GST chronological exemption 25.4.2, 25.4.3 GST consequence of lapsing withdrawal

power 16.8, 25.9.4 (See, Generation-skipping transfer tax)

GST contrasted with Schedule H 16.8, 25.6.4, 25.6.8

Health, education, support, and maintenance (ascertainable standard exception) 16.2, 24.2, 24.3 (prior transfer tax credit)

IDGTs, relation to 16.1Income tax treatment as a result of lapse 16.5

Incomplete transfer 6.5.3Lapse and regulatory inconsistency 16.5Lapse as release 16.3, (Five and five power

exception) 16.3 Lapse making beneficiary a donor 16.5, 16.7Lapse making beneficiary GST transferor 16.5,

16.9, 25.9.4, (See, Generation-skipping transfer tax)

Limited power and general power contrasted 16.1

Limited power of appointment and dynastic wealth 16.1, 25.1

Marital deduction (See, Marital Deduction) 7A.8.4.2 (portability), 7A.9 (portability), 14.20

Portability elections 16.10 (See, Deceased Spousal Unused Exclusion Amount)

Planning with Powers of Appointment 2.1, 6.5.3, 6.7.10, 7A.3.2 (Black Swan principle), 7A.3.3, 7A.5 (marital deduction), 7A.7 (expanded discussion), 7A.8.3.1

Pre October 22, 1942 power exception 16.2Qualified disclaimer exception to release

6.7.10, 16.3Release 6.7.10, 16.3, 16.5-16.9Retained Power and relation to completed

gifts 6.5.3, 16.1Sprinkling or distribution power 16.1State law significance 16.2Taxable termination avoidance 25.6.8Trust drafting to avoid 16.1Trust, General Power of Appointment 3.1,

7A.8.4.2 (portability), 7A.9 (portability), 14.20

Power of AttorneyCharitable giving authority 22.3Ineffective gifts 6.5, 15.3, 22.2Scope of authority 15.3State law 15.3Stock and bond trade authorization 15.1

Predeceased ancestor rule (See, Generation skipping transfer tax (GST))

Premiums (See, Control premium)Funding controlling interest 21.19Price, Robert 9.2, Chapter 39Prior transfer tax credit (PTC) Chapter 24Amount allowable 24.1, 24.2Average tax rate 24.5Calculation 2.3Debt 24.2Evidence 24.3Extension of time to file and pay encouraged

2.5Foreign death tax credit 24.5General power of appointment 24.3Generally discussed Chapter 24GST 25.2Illustrated 2.3Imminent death exception 2.3Introduction 2.3Life estates and trust interests 2.3, 24.2–24.4,

24.8Limitations 2.3, 24.5Marital deduction 24.2, 24.3, 24.5 (chart)Mortality 24.3Multiple transfers 24.5Property defined 24.3Purpose 24.1QTIP elections relationship 2.2, 2.3, 24.5Section 6166 relationship 24.6Special-use relationship 24.7State death taxes, excluded 24.5Summary of allowance 2.3

Survivorship 24.1Taxes paid 24.5, 24.6Transfer defined 24.4Valuation 24.2, 24.3

Private annuitiesAgreements 17.3Discounts 17.3Estate planning 17.3Hot audit issue 17.1Mortality 17.3Pre-death planning checklist 17.3 Reporting 17.2.1, 17.3Tables 17.3Valuation 17.3Private foundations 22.6, 22.7

Probate refereesBequests to maker 11.5Bona fides (See Loans)California and insufficiency of common

methodology 8.7Discounting to present value 11.2, 11.3Estate tax value and gift tax value contrasted

11.4Factors supporting discounting 11.3Family loans 11.3Gift tax and estate valuation differences 11.4Presumed value 11.3

Promissory notes (See, Loans)

Prompt discharge Request 4.5, 27.14 (extensive discussion)Sample letter 27.14

Protective refund claims (See, Refund claims; Supplemental estate tax returns, and Schedule PC)

PTC (Prior Transfer Credit)

Puts (See, Options)

QDOTs (See, Qualified domestic trusts)

QTIP (See, Qualified terminable interest property)

Qualified appraiser (See, also Appraisals and appraisers) Avoidance with arm’s length recent sale,

consistent facts 8.7Conservation easements 26.6Environmental and other special conditions

8.22Importance 8.2IRS pays most of the cost 8.7 Penalties and defense 8.7Selection of suitable appraiser 8.7Tax Court, necessity 8.13

Qualified conservation easements (See, Conservation easements)

Qualified disclaimersCharitable bequests 22.2, 22.5, 22.7

(extensive)Generally 6.7.10Joint tenancies 13.6Marital deductions 21.23Power of appointment release exception

6.7.10, 16.3FLPs 22.7Pre-1977 disclaimers 6.7.10Predeceased ancestor with GST tax 25.6.2Reformation 22.5

Qualified domestic trusts (QDOTs)Assignment to impose QDOT 21.20

THE OVATION O-21

Bonding requirements 21.10Documentation 21.2, 21.10DSUEA (See, Deceased Spousal Unused

Exclusion Amount) Election 21.20Form 706-QDT 6.2.2, 21.20 (general

discussion)Gifting DSUEA 7A.14.14.1IRA QDOTs 21.20Marital deduction alternative 21.9, 20.10Mellinger discounts 21.9Non-citizen spouse and life insurance 12.4,

21.20QTIP (See, Qualified terminable interest

property)Qualified retirement plans 21.20Relief and reformation 21.20Security requirements 21.20U.S. trustee 21.20Valuation significance 21.20Qualified family owned business interest

(QFOBI) election 8.16

Qualified joint tenancies (See, Joint tenancy)

Qualified medical payments 25.1, 25.6, 25.6.7 (taxable distribution exception under GST law)

Qualified organization (See, Conservation easement)

Qualified reformation 22.2, 22.5

Qualified severance for GST purposes 25.7.1 (described), 25.8.9

Qualified terminable interest property (QTIP)Amending election 2.6, 21.13, 21.13.2Annuity trusts 21.11Automatic election discouraged 2.2Charitable remainder 21.14, 22.4.1Credit Shelter Trust, QTIPing 15.5C, (See,

Deceased Spousal Unused Exclusion Amount)

Disposition of QTIP 3.3, 14.1, 15.5A, 15.5BDistributions to trusts 2.6DSUEA election and QTIP 15.5C, (See,

Deceased Spousal Unused Exclusion Amount)

Election 2.1(late return, first return filed), 21.1, 21.2 (generally), 21.10, 21.13 (who controls), 21.13.1 (protective), 21.13.2 (relief), 21.16 (IRAs), 21.20 (QDOTs), 21.22

Equitable recoupment 21.11.2Excessive election relief 21.13.2Extending time to file and pay estate tax 2.2,

5.5FLP or FLLC ownership 14.6, 21.11Formula clauses 21.13, 21.13.2, 21.15, 21.20,

21.21Funding 21.18, 21.19, 25.8.11, 25.9.1 (reverse

QTIP election with GST and illustration), 38 (illustrated return)

General power of appointment problems 3.1Gift 15.5.BGST benefit over outright with DSUEA 25.2Hot audit issue if surviving spouse does not

report 4.6IRA distributions 17 Appendix 1, 21.16Lifetime estate planning 3.2Mellinger discounts 3.1, 3.2, 3.3, 14.14Minimum distribution requirements 17

Appendix 1Net income payments 21.10, 21.11Omitted election 21.13.2

Premium value with funding 21.19Principal payments 21.10Prior transfer tax credit (PTC) 2.2

(relationship), 2.3, 24.3Qualified disclaimers 21.23Qualified domestic trusts 21.20 and (See,

Qualified domestic trusts (QDOTs))Questions on estate tax return 21.11.1Relief to amend 21.13, 21.13.2, (See QTIPing

a credit shelter trust under Deceased Spousal Unused Exclusion Amount)

Requirements 21.9Rev. Proc. 2001-38 7A3.4, 7A.6, 21.9.2, 21.10,

21.13Reverse QTIP election 15.9, 25.2, 25.7.1,

25.8.10 (ETIP), 25.8.11, 25.9.1 (extensive discussion), 25.10 (completing Schedule R), Chapter 38 schedules M and R

Sales 14.6 (fair market value), 15.5 (of remainder), 15.6, 21.22

Schedule M (See, Schedule M), Chapter 38 Schedule M

Section 2519 trap 3.3, 14.1, 14.6, 15.5.A, 15.5.B, 15.5.C (comment on regulation change needed), 21.22

Stub income 21.11.1Surviving spouse sole beneficiary 21.12Unfunded trust 14.7Unitrust payments 21.11Qualified tuition payments 25.1, 25.6 25.6.7

(taxable distribution exception under GST law)

Qualified use property (See, Special-use Valuation)Material participation 9.8Member of family 9.8Raimondo, Carol 2.3, 26.3.4, Chapter 39

Ramsbacher, JohnFID experience 8.16Recourse versus non-recourse debt 8.16

Real estateAdverse environmental, toxics and other

unique circumstances (See adverse condition with real estate) 8.22

Charitable giving limitations 22.4.1, 22.6Closely-held business for Section 6166 27.5Conservation easements 22.4.1, 26.2. 26.3,

26.3.2, 26.3.3, 26.4 (extensive discussion), 26.6, 26.7 (charitable purpose needed), (See, Conservation easements)

Debt’s (acquisition debt) effect on conservation easement 26.3.4

Equitable interest 14.17FLPs 14.2, 14.6 (Bongard test), 14.6, 14.9

(state law), 14.13 (valuation in limited partnerships and LLCs)

Generally Chapter 8Living trust ownership (Schedule A) Real

estate reporting 4.5, 7A.9, 8.16Maintenance and repair deductions (See,

administrative expenses)NNN lease and Section 6166 27.5Ownership uncertain 8.2, 14.17Partition 14.17Section 6166 deferral (See, Section 6166)Significance to gross estate 8.1Situs 23.2 (See Foreign death tax credit)State law 14.17

Real estate valuation (See, Valuation)Adverse conditions (See, adverse condition

with real estate) 8.3, 8.22, 14.17Debt (See, Recourse debt versus non-recourse

debt) IRS valuation guide 8.4 Special-use valuation (See, Special-use

valuation)Unpaid rent, reporting 8.5

Reasonable and necessary testAccountant fees 18.3.3Action plan checklist 18.3.4Administrative expense deductions 18.3,

18.3.1, 18.3.2, 18.3.3Business expenses distinguished 18.3.2, 18.3.4Economic hardship 18.3.1, 18.3.4Estate settlement 18.3.3Frequency issue with business expenses

18.3.4Graegin loans 18.3.6Interest deductions 18.3.6Legal fees 18.3.3Maintenance of property 18.3.1No-prepay loans 18.3.6Preservation of property or business 18.3.1.

18.3.4Sale expenses 18.3.5Section 6166 deferrals and relevancy to 18.3.6Standard of test 18.3.1 through 18.3.8Statutory interest 18.3.8

Recapture tax (See, Special-use valuation)

Recourse debt versus non-recourse debtAbraham, Mel 8.16Alternative reporting approaches with FIDs

8.16Case law recognition of difference with FIDs

8.16Deduction unchanged by October, 2009

regulations 19.2.6Differences with reporting for real estate 8.5Fair market value argument with FIDs 8.16FIDs, relationship to 8.16-8.19Gross estate value less than debt reported

8.18Illustration of comparison of leveraged FIDs

to FLPs 8.17Illustration of distinction 8.16Inconsistency with fair market value 8.16Instructions for reporting 8.16Relevancy to blockage discounts 8.16IRS silence 8.16Joint tenancies, consideration furnished 13.3Leveraged FIDs may outperform FLP and

family LLC discounts 8.17Life insurance debt 12.2Non-resident aliens, significance to 8.16Portability elections (See, Deceased Spousal

unused exclusion amount)Practical experience 8.16Prepayment penalties, impact on value 8.16Prior transfer tax credit 24.2Ramsbacher, John experiences 8.16Regulatory directive 8.5, 8.16, 19.2

(unchanged by October 2009 regulations), 19.2.6

Reporting 8.16- 8.19, 19.1Reporting anomaly 8.16Section 6166 elections 8.16, 27.2.1, 27.13.2Significance of issue to Section 2057

(Qualified Family Owned Business Election) 8.16

Significance of issue to special-use value 8.16State law distinction 8.16Redd, Charles A (“Clary”) 22.8 (Charitable

giving), 22.10Redemption (Code section 303) Portability elections 7A.9Relationship to §6166 elections 27.6Three-year rule 15.2

Refund claimsAction or proceeding on claim 7.6

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-22

Administrative expenses 18.1, 18.3.2Adverse conditions on real property 8.22Appeals 7.4, 7.5 (state income tax), 7.6Audit profile reduced on initial return 19.3.1Claim and refund proceedings 7.6, 18.3.2Debts and liabilities if not paid 19.2, 19.3,

19.3.1Expenses, ancillary to claim 18.5, 39 (sample)Form 56 18.5Informal claims 7.6Offsets against refund claims 19.2, 19.2.5,

19.3.1Ownership in real property in doubt 8.2Protective refunds and appeals 7.6, 8.2,

18.3.2, 18.5, 18.3.3, 19.2, 19.2.5 (extensive), Chapter 39 (samples)

Notice 2009-84 18.4, 19.2.1 (extensive), 19.2.4, 19.2.5, 19.2.5

Related ancillary expenses 18.3.2Rev. Proc. 2011-48 18.5 (in depth), 39

Appendix 1 (attachment samples)Rev. Proc. 2014-18 (same gender marriage)

2.1, 4.5A, 7A.8.4.1, 7A.8.4.5, 7A.8.4.4 (extensive), 7A 8.4.4 (Windsor claims), 13.3A

Safe Harbor, Rev. Proc. 2011-48 18.3.2, 19.2.2Same-sex marriage 7A 8.4.4 (Windsor

claims), 13.3A, 21.1, 21.25, (See Defense of Marriage Act, infra), Rev. Proc. 2014-18 (this heading)

Sample provisions 39Schedule PC (See, Schedule PC)Section 6166 cases 27.12State income tax refund claims 7.5Statute of Limitations 7.6, Chapters 18 and 19,

18.1, 18.3.2, 18.5Supplemental estate tax returns 7.6, 18.3.2,

19.2.5, 19.3.1, 27.7Timeliness 7.6, 18.3.2, 18.5 (Rev. Proc. 2011-

48 discussed in depth)

Residential propertySelection of appraiser 8.7Special-use valuation 9.2

Restrictive agreementsAppraisal assistance 10.16Closely-held stock value 10.13Comparability test 10.14-10.15Evolution of law 10.13, 10.14Frost, Whitney 10.13Non-tax purpose 10.13, 10.18 (paramount

importance)Pre-1990 cases receive Section 2703-type

analysis 10.15Section 2703 6.5 (loan terms), 8.3 (leases),

10.4, 10.13, 10.14 (impact explained), 10.15 (applied

Substantial modification 10.13

Retained development rights (See, Conservation easements)

Retained interests (Section 2036)Absetzen 14.4Adding business to tainted LLC or FLP 10.20Adequate disclosure 14.6Adjusted taxable gift reversal 6.2, 6.7.4, 14.4,

15.7Alaska trusts 15.12Avoidance with co-ownership agreements

15.10Avoidance with lease 15.10Bongard v. Comr. 14.5, 14.6 (extensively

applied), 14.14, 14 Appendix 1Charitable remainder defense to tax purpose

with FLPs 14.6Co-ownership issues 8.10, 8.17, 14.4, 15.10

Delaware trusts 15.12Enjoyment 15.10Equitable title 14.7Evidence 14.4, 14.6FLPs (See, Family limited partnerships)Form over substance 14.4, 14.5, 14.6Full and adequate consideration exception

14.2, 14.3, 14.6, 14.14, 14 Appendix 1Gifting purpose and Bongard test 14.5, 14.6,

14 Appendix 1GRATS 6.8 (and subparts)IDGTs 6.8.8, 6.10, 15.11Implied agreement 14.4, 14.13, 14.5, 14.6, 14

Appendix 1Loans 6.5.1Leveraged FIDs as defense 8.17, 8.19Marital Deduction 14 Appendix 1Non-tax purpose exception, substantial

and legitimate 14.2, 14.4, 14.5, 14.6 (extensively), 14 Appendix 1

Planning checklist 14.5Power of appointment contrasted 16.1Private annuities 17.3Receipt handling 14.5, 14.6, 14 Appendix 1Rent payments 8.10, 14.2, 14.4, 14.6, 15.10Self-settled trusts 15.12Separate counsel recommended 14.6State law 14.7, 14 Appendix 1Substantial and legitimate 14.2, 14.4, 14.5,

14.6 (extensively), 14 Appendix 1Summary 6.2, 14.4, 14.5, 14.6Support 14.4, 14.5, 14.6Sword, use and issue 14.4Taxpayer identification numbers 14.6Title transfers 14.7Use 15.10Value reported 14.13Waiver of attorney-client privilege (See,

Attorney client communication)

Retirement planningBequests with IRAs 17.5Choate, Natalie B. 17 Appendix 1Community property consideration 17.5Coughlin II, George 17 Appendix 1Distribution planning 17.5Foss, Mary Kay 17 Appendix 1Grandfathered exclusions 17.2.2Greater impact than estate tax 17.1, 17

Appendix 1, 17.7IRAs (See, Individual Retirement Accounts) Kizor, Alan 17.7Marital deduction distribution planning 17.5,

17 Appendix 1, 21.17Minimum distribution requirements 17

Appendix 1National estate planning awareness week

survey 17 Appendix 1Non-citizen spouse 21.20, (See, Qualified

domestic trusts (QDOTs))Pensions 17.2.1Pre-death planning mistakes 17 Appendix 1Pre-death significance 17.1QDOTs 21.20Roth IRAs (See, Roth IRAs)Specialized area of practice 17 Appendix 1

Rev. Proc. 2011-48 3.4, 7A.6, 21.9.2, 21.10, 21.13

Rev. Proc. 2011-48 Appeals perspective 7.6Generally 18.3.2, 18.5 (detail), 19, 19.2.2, 39

(sample)Reversionary Interests 5.8

Revocable transfersIneffective transfers 15.3Reporting real property 4.5, 7A.9, 8.16Schedule G reporting 7A.9 (simplified

reporting), 15.1Three-year rule (See, Three-year rule)

Robinson, Jackie 1.5, 7A.1

Roth IRAs (See, IRAs)Commentary 17 Appendix 1Designated Roth-IRA trusts 17 Appendix 1Jones, Michael commentary and responses 17

Appendix 1Pre-death planning 17.1, 17 Appendix 1Trytten, Steven studies 17 Appendix 1

S Corporations Built-in gain 10.5, 10.5A (extensive)Distribution 14.11 (preference)Distribution 14.11 (preferences)Lack of Marketability Discounts 10.5AMinority interest risks 10.5APhantom income 10.5ATax effecting 10.5A Valuation comparison, C Corporation 10.5A Van Vleet, Dan R. valuation and SEAM 10.5A

SalesAcceleration of loss of tax benefits (See,

Special-use valuation and Section 6166)Adequate disclosure on gift tax return 6.9Attachment to Form 706 15.13Distributions as disguised sales 21.18Distributions contrasted 21.18IDGTs 15.11QTIP trusts 21.22Remainder in QTIP 15.5A, 15.5B

Sales expensesAdministrative expenses (See, Administrative

expenses)Deduction denied on special-use sale 9.10Reduction to value of real estate denied 8.3

Savings clauses (See, Formula clauses)

Schedule A 8Completion 8.5Debt 8.16-8.18Instructions on debt reporting 8.16Living trust ownership of real property 4.5,

8.16, 15.1Reporting secured debt 8.5Schedule A-1 9Allowance limitation 9.2AV Date elections 7.7Checklist 9.4.1Curing defective elections 9.4.1Elections 9.4, 9.4.1 (time and content)Formula when discounts exist 9.6Guardians 9.4.1Information needed 9.4.1Qualifications for Section 2032A election 9.3Recapture agreement 9.3, 9.4.1Special-use elections Chapter 9 (generally)Time 9.4.1Schedule B 10Living trust securities and bonds 15.1Publicly traded stocks and bond valuation

10.2Schedule C 11Bank accounts, principal and interest 11.2Generally Chapter 11Living trust cash and notes 15.1Promissory notes 11.2

THE OVATION O-23

Schedule DDebt related to life insurance 12.2Form 712 importance 4.6, 12.2Life insurance on life of decedent Chapter 12Schedule E 13Non-qualified joint tenancies 13.2-13.5Non-qualified joint tenancy as hot audit issue

4.6, 13.1Part 1, qualified joint tenancies 13.1, 13.2Part 2, non-qualified joint tenancies 13.1Qualified joint tenancies 13.2, 13.3Same sex-marriage refunds 13.3AScope 13.1Schedule F 14Art 14.17.7, 14.17.7.1, 14.18Contingent claims 14.17.6Copyrights 14.17.5FLPs (See, Family limited partnerships)Family LLCs (See, Family limited partnerships

and LLCs) Hidden assets 14.18 Household furniture and furnishings 14.18Living trust miscellaneous assets. 15.1Malpractice claims 14.17.2Mineral rights 14.17.4Miscellaneous assets 14.1Oil and Gas rights 14.17.4Partnerships, general 7A8.4.2, 7A.9, 7A.10.3,

7A.10.4, 14.9, 14.13, 14.20Patents 14.17.5Proprietorships 7A.8.4.2, 7A.9, 14.20QTIP property on surviving spouse’s death

21.8Wrongful death claims 14.17.3 (gross estate

exclusion)Schedule G 15Gift tax gross-up 15.2, 15.6Ineffective gifts 15.3Living trusts 15.1Phantom assets4.5, 7A.9, 15.6Private annuity issues 17.3Question 12e 15.13Real estate reporting 4.5, 7A.9, 8.16Reporting assets 15.1Retained interests 15.2Reversionary interests 15.2Revocable transfers 15.1Section 2036 15.1Three-year rule 12.1, 15.1, 15.2Schedule H 16Connection to questions 12b and 13 to estate

tax return 16.1GST taxable termination contrasted 25.6.8Lapsing five and five power 16.1Power of appointments, Chapter 16

(generally)Schedule I 17Community property 17.5Completion of schedule 17.2Employee death benefits 17.4Exclusions 17.2.2, 17.4.1Generally Chapter 17Income tax coordination 17 Appendix 1 Instructions 17.2.2Question 15, page 3 of estate tax return 17.2 Requirements 17.2.1Schedule J 18Accountant fees 18.3.3, Business operation expenses 18.3.4 Fiduciary fees 18.3.2, 18.3.3Funeral expenses 18.2Generally Chapter 18Interest deductions 18.3.6, 18.3.8 Legal fees 18.3.3

Maintenance expenses 18.3.7Portability elections 7A.2, 18.6, 40 (illustrated

return) (See, Deceased Spousal Exclusion Amount)

Reasonable and necessary test (See, Reasonable and necessary)

Refund claims 18.1, 18.3.2, 18.3.3, 18.5 (Rev. Proc. 2011-48 reviewed), 18.3.6, 39 (sample)

Repair expenses 18.3.7, Sale expenses 18.3.5Sample Chapters 38 and 39Schedule L contrasted 18.3.3Standard for analysis 18.3, 18.3.1, 18.3.2 Statutory interest 18.3.8

Schedule K 19Care-giving services 19.5.9Checks outstanding 19.5.1Claims 19.2.2Contingent claims 18.1, Chapter 19

(generally), 19.2.8, 19.3, Chapter 39 (sample Schedule PC)

Foreign death tax 23.9Form 8275-R (disclosure of position contrary

to regulation) 19.3.1Gift taxes payable at death 19.2.10, 19.5.6Guarantees 19.5.5Income taxes payable at death 19.2.10, 19.5.6Loans by family members 19.5.10Malfeasance by trustee 19.5.11Marital rights relinquished 19.5.2Mortgages and deeds of trust 19.2.6, 19.5.13Palimony 19.5.3Portability 40 (sample return), (See, Deceased

Spousal Exclusion Amount)Real estate taxes 19.2.10Rent accrued 19.5.10Sample Chapters 38 and 39Settlements 19.2.2State death taxes 19.5.8Support obligations 19.2.3, 19.5.3 Schedule L 20 Contrasted to Schedule J 18.3.2, 20.1, 20.3, 20.5 Deductions not subject to claims 20.1 and

20.2Limitations compared to category one 18.3.1,

18.3.2, 19.1, 19.2, 19.4, 20.1, 20.2 Losses 20.2, 20.4 Simplified reporting 21.3

Schedule M 21Documentation 7A.9 (simplified reporting),

21.2, Chapter 38 (sample return), (See, Deceased Spousal Unused Exclusion Amount for several unique considerations)

Electing QDOT 21.20Electing QTIP 21.1, 21.2 (generally), 21.10,

21.13, 21.13.1 (protective), 21.13.2 (relief), 21.16 (IRAs), 21.22

Formulas 21.13, 21.13, 21.13.2, 21.15, 21.20 (QDOT), 21.21

Marital deduction generally Chapter 21 (See, Marital Deduction, Powers of Appointment and Qualified terminable interest property)

Omitted QTIP property from survivor’s gross estate 4.6

QDOT (generally) 21.20QTIP trusts (See, Qualified terminable interest

property)Qualified disclaimers 21.23Questions related 21.11.1Portability elections (See, Chapters 7A,

generally, and illustrated return in Chapter 40)

Sample Chapter 38

Stating the marital deduction 21.13Transmission expenses 18.2, 18.4, (See,

Deceased Spousal Unused Exclusion Amount), illustrated in returns to Chapters 38 and 40

Valuation of assets 21.19, 14 Appendix 1Schedule O 22Charitable deductions generally Chapter 22Conservation easements 22.4.1, 26.2. 26.3,

26.3.2, 26.3.3, 26.4 (extensive discussion), 26.6, 26.7 (charitable purpose needed)

Documentation required 22.3Expenses and taxes reducing 22.4.2Private foundations as hot audit issue 4.6 QTIP remainder 22.4.1Qualified disclaimers 22.2Question on return 22.2Samples Chapters 38 and 39Split-interest trusts 22.4.1Swing items 22.4.2Schedule P 23Computation 23.1, 23.3, 23.5, 23.6 Creditable taxes 23.1, 23.5, 23.6, 23.7 Foreign death tax credit generally Chapter 23 Form 706-CE 23.7Limitations 23.3Proof 23.7Sample Chapter 39Timeliness 23.7Treaties 23.1, 23.6Valuation 23.4, 23.5

Schedule PCDefect curing 18.5Expenses, ancillary to claim 18.5, 39 (sample)Form 56 18.5Form 843 (See, Form 843)Generally 4.5, 7.6, 18.3.2, 18.5 (extended

discussion of Rev. Rul. 2011-48), 19.2, 19.2.1, 39 (sample)

Notice 2009-84 18.4, 19.2.1 (extensive), 19.2.4, 19.2.5

Protective refund claim (See, Protective refund claim)

Schedule Q 24Computation 24.5Limitations 24.5Marital deduction 24.2, 24.3, 24.5 (chart)PTC example 2.3PTC generally Chapter 24QTIP election out and PTC 2.3-2.5Reporting 24.1Sample Chapter 39Sliding scale 24.1Valuation 24.2Schedule R (GST) 25Applicable fraction (See Generation-skipping

transfer tax)Completion of Schedule R 25.6.9, 25.10,

samples in attachments to Chapters 38 and 39

Exemption allocation on death 25.8.9, 25.8.11 (excessive), 25.9.1 (reverse QTIP election), 25.10 (completing Schedule R), Chapter 38 and 39 sample returns

GST exemption (See Generation-skipping transfer tax)

ILITs 12.8Inclusion ratio (See Generation-skipping

transfer tax)Life Insurance trusts 12.8Purpose 25.1Reverse QTIP election 25.9.1, Chapter 9

sample returnSchedule R-1 12.8, 25.6.9, 25.10, sample in

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-24

Chapter 39Schedule U 26Acquisition debt 26.3.4Charitable deduction entry 26.4Generally Chapter 26 (regarding conservation

easements)Retained development rights 26.3.5Sample schedule Chapter 39Schiller, Jordan 26.1 (Pacific Crest Trail)

Schiller, LeonFirst rule of law 2.6Relations with IRS personnel 7.1Valuation disputes 8.2

Schooler, JohnAdjusted taxable gifts 6.2Advice on attachments 4.2Audit odd, avoidance or tips 4.3, 4.4, 7.7Blockage discounts 10.9 (endnote)DSUEA appeals 7A.12.3Extend time 2.5, 5.4ForwardFiling requirement 5.3Gift splitting 6.2.6Introduction (See, forward)Losses, narrow scope 21.2Questions on return 4.7Power of attorney, lack of authority 15.3Private annuities 17.3Retirement accounts 17.5Section 6166 deferral 27.6

SEAM (S Corporation economic adjustment model) (See, S Corporation; Valuation)

Section 2036 (See, Retained interests)

Section 2057Loans not treated as business assets 27.3Real estate 8.2 Recourse versus non-recourse debt 8.16Section 6166 27.3, 27.5 Special-use 9.1

Section 6161Connection with Section 6166 5.5, 5.8, 27.1,

27.2.3Deduction 18.3.6, 27.7Extends collection period 27.2Protective election 27 Appendix 1SEAM (S Corporation economic adjustment

model), 10.5A

Section 6163 Amount deferrable 27.13.2Election 27.13Extends collection period 27.2Extension of time to pay estate tax on

remainder or reversion 27.13

Section 6166 (Section 6166) deferral to pay estate taxAcceleration of payments 27.6, 27.10

(extensive discussion and chart)Active business 9.8Activities of agents and employees 27.5Adjusted gross estate 27.2, 27 Appendix 1,

Chapter 39 sample returnAdministrative expense deduction compared

18.3.6Agreement for lien 27.8Attached statement of support 27 Appendix 1Bond or security 27.8, 27.9Charitable giving contrasted 22.7-22.9Closely-held business 27.4 (defined), 27.5

(real estate)

Connection with Section 6161 27.1, 27.2.3Debt 27.2.1 (recourse versus non-recourse),

27.13.2Deferral benefit, generally 27.1Discharge of executor 27.8, 27.9, 27.14Dispositions, sales and withdrawals 27.6District court standing 27.12Election 27.1Employee work 27.5Extends collection period 27.2Extension of time to pay installment 5.5Grace period 27.6GST direct skip 27.2.2Increase of tax liability 27.2.2Interest 18.3, 27.2.2 (rate), 27.7 (deduction

issue)IRS advisory group 27.2.4, 27.8, 27.9 (security

waiver)IRS review and processing 27.2.4, 27.8, 27.9 Lease terms 27.5Lien 27.8 (extensive), 27.9Lien agreement 27.8Material participation compared to special-

use 9.8Overpayment, no reduction of later payments

due with 27.2.2Pre-payment, no reduction of later payments

due with 27.2.2Prior transfer credit (See, Prior Transfer

Credit)Protective election 27.2.3Real estate 27.5, strategic suggestions 27.5,

See 27 Appendix 1 for illustrationReal estate attorney communication 27.4Refund proceedings 27.12Security 27.8, 27.9 (waiver procedure)Swing items 18.3, 18.4, 18.6Strategic suggestions 27.3 (downside with

company loans), 27.5 (real estate planning) Tax Court review 27.11Termination of deferral 27.6, 27.10 (extensive

and chart)Three-year rule (See, Three-Year Rule)Unsecured deferral 27.9Separate share (See, Generation-skipping

transfer tax and Marital Deduction)Slott, Ed 17 Appendix 1Spain 23.2

Simplified reporting (See, Deceased Spousal Unused Exclusion Amount)

Special-Use Valuation (Section 2032A)Active business 9.8Assessment recapture tax 9.9Audit practicalities 9.4.5AV Date and special-use elections 8.23, 9.7Barns 9.2 Basis 9.2Basis adjustment election 9.10, 9.11Benefit amount 9.3Bond or lien 5.6, 9.4.1, 9.9Bretney, Dean (See, Bretney, Dean)Checklist to election 9.4.1Conservation easements 9.9 (sale and

recapture tax 9.9), 26.3.5 (excluded purpose for retained development right), 26.3.1, 26.3.3 (planning to maximize)

Crop leases 9.8, 9.9Crops- real or personal property 9.3Curing defective elections 9.4.1Deduction limitation 9.2Deduction of last resort 9.14Disability and material participation 9.8Discretionary trusts 9.3, 9.8

Domestic partners distinguished 9.2Drawbacks and traps 9.2, 9.8, 9.10, 9.11, 9.12,

9.14Elections 9.4, 9.4.2 (relief for late elections)Employment and material participation 9.8Estate planning 9.14, Chapter 9 Appendix 1Family cooperation problems and material

participation 9.8Family member and material participation 9.8Farm rental income comparisons 9.5Farm rental method and AV Date 9.7Federal definition applied, special-use

elections 9.2Five factors 9.5 (generally), 9.7 (AV Date)Form 706-A 9.9Formula with discounts 9.6Generally Chapter 9 Harl, Professor Neil E. (See, Harl, Professor

Neil E.)Highest and best use contrasted 9.2Hot audit issue 4.6Information required 9.4.1Interest on recapture tax 9.10, 9.11Interested parties 9.4.1Johnson, David Cay 9.1Late election relief 9.4.2Late filing of return, effect of 5.4, 9.4.2Lien 5.6, 9.12Material participation 9.8Mattoon, Steven F. 9.2Partial dispositions 9.9Partial elections 9.4.1, 9.4.4Perfecting 9.4.1Planning considerations summarized 9.14, 9

Appendix 1Planning considerations with recapture tax

9.10Portability elections 9.14Post-death planning problems 9.8, 9.12Preferred alternatives to 9.2Present interest requirement 9.3, 9.8

(discussed) Price, Robert 9.2Prior transfer tax credit 24.7Protective elections 9.4.3Qualified heir expenses on recapture 9.10Qualified heir, passing to 9.3Qualified use 9.2, 9.3, 9.4.4 (election

requirement); 9.8 (material participation)Qualified use problems 9.8Recapture agreement 9.3, 9.4.1, 9.12 (and

lien)Recapture and basis election 9.10Recapture and discounts 9.6Recapture and estate planning problems 9.11Recapture consequences 9.9, 9.11Recapture events 9.2, 9.4.1, 9.6, 9.8, 9.9Recapture expenses and interest 9.10, 9.11Recapture reporting 9.9Recapture tax 9.8, 9.10Recapture tax lien 9.12Recapture tax payments 9.9Recourse versus non-recourse debt 8.16

(reduction of easement), 26.3.5, 26.8, 26.9, 26.10 (relationship to special-use election)

Regulatory conflict 9.4.4 (partial elections)Relevant factors test 9.5Relief 9.4.2Rental method of valuation 9.2Sample return, 39 (illustration)Self-employment test and material

participation 9.8Tax Act of 1997 9.4Thornton, Rich CPA, 9.2 (limited application),

THE OVATION O-25

9.2 (preferred alternatives)

SpouseConsenting spouse (See Gift Splitting)Deceased Spouse (See, Deceased Spouse

Unused Exclusion Amount)GRATs 6.8.1Joint Tenancies 13.3, 13.3AMarital deduction 21.1Rev. Proc. 2013-13 6.8.1, 7A.8.4.1, 7A.8.4.3,

7A.8.4.4, 7A.8.4.5Statistics on use 9.1Strategic approach to discounts and special

use 9.6, 9.10Structures and related improvements 9.2Three-year rule 15.2U.S. citizenship 9.3U.S. property 9.3Valuation problems with farm rental income

comparisons 9.5

State court decrees and settlementsBona fides required to support deduction for

expenses and claims 19.2.1, 19.2.2Charitable bequests and reformation 22.2,

22.5Charitable remainder trust proceedings 22.2GST chronological exemption 25.5Marital deduction 21.24Qualified reformation 22.5State law applied 14.17, 19.2.2Substantial modification and GST 25.2

State death taxPortability elections, simplified reporting 7A.9QTIP alternative to credit trust as New York

alternative 21.1

Statute of Limitations (See Estate and gift tax assessments and Gift tax assessments)

Stemach, JosephInconsistent treatment due to poor preparer

work 1.4Quoted 8.13

Step-transactionFLP formation and gifting 6.7.3, 14.6, 14

Appendix 1Indirect gifts 6.7.3, 14.6, 14 Appendix 1

Stock and bond valuationAgreement restrictions 10.4, 10.13Black Scholes Model (See, Options)Blockage discounts 10.19Book value 10.4Built-in gain deduction 10.5Burden of proof (See, Burden of proof)Business history 10.4Buy-sell agreement formulas 10.13Capitalization of income 10.4Closely-held stock 10.3-10.22Code Section 2703 10.13 Comparable sales 10.4Discounted cash flow 10.4Dividend paying capacity 10.4 Dividend reporting 10.2Earning capacity 10.4Economic outlook 10.3, 10.4Entity-level valuation 10.4EstateVal recommended 10.2Ex-dividend valuation 10.2Goodwill (or intangible) formula 10.4Goodwill 10.4GST chronological exemption 25.2, 25.5Non-essential assets 10.4Options (See, Options)

Public market comparisons 10.4Publicly traded 10.2Restrictive Agreements (See, Restrictive

agreements)Rev. Rul. 59-60 (in depth) 10.4S Corporations 10.5Series E and EE bonds 10.2, 10.6 (built-in gain

treatment), 11.2Special-use elections and discounts 9.6Stock Options (See, Options)Stock restrictions 10.4Weighing factors 10.4Stock Options (See, Options)Stub income (See, Marital Deduction)Substantial modification

StringsPresent interest rule 6.3, 6.7.3Retained interests (See Retained Interests)Special use, present interest 9.3, 9.8

Substantial and legitimate (See, Retained interests)

Sunset (See, Tax Act of 2010)GST and GST Tax (See, Generation-skipping

transfer tax)

Supplemental estate tax returnsAdministrative expenses 18.3.2, 27.7AV Date election, 8.23Burden of proof (See, Burden of proof) Claim proceeding 7.6Filing 19.2.5General discussion 5.3, 5.4, 8.6, 18.3.2Interest deduction 27.7Notice 2009-84 18.4, 19.2.1 (extensive), 19.2.4,

19.2.5, 19.2.5Penalty relationship 19.3.1Portability election 7A.8.2, 7A.8.3, 7A.12Refund action 7.6 (See, Refund claims, in

particular, protective refund claims)Schedule PC (See, Schedule PC)Strategic approach deduction regulations

contrary case law of several circuits 19.3.1Valuation changes 8.6, 10.4

Swing itemsAccountant and attorney fees 7A.2, 18.3.3, Funeral expenses excluded 18.2Marital deduction 18.4, 21.15Obama Heath Insurance Tax (See, heading by

that name)Sch. M, and Sch. R to illustrated return with

Chapters 38 and 40Section 642(g) waiver or election 7A.2, 7A.8.4,

18.2, 18.4Transmission expenses 7A.2, 7A3.3, 18.2,

18.4, 21.15 (extensive), (See, Transmission expenses under Deceased Spousal Unused Exclusion Amount), 38 (sample return first spouse), 40 (sample portability return)

Tax Relief Act of 1997 (See Gift Tax Returns, Adequate Disclosure)

Tax Act of 2010 (Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010) Adjusted taxable gifts 2.1, 4.3, 6.2.1, 6.2.2,

6.2.3, 7.1 Automatic GST exemption allocationDeceased spousal unused exclusion amount

(DSUEA) (See, Deceased Spousal Unused Exclusion Amount)

Estate tax rate 1.3Filing required 5.3Gift tax (See, Gift Tax)

GST discussed generally 25.1AGST tax rate 25.1Modified carry-over basis (See, Form 8939)Who must file Form 706Tax-Affecting/Tax Effecting 10.5A (S

corporations)

Tax CourtAdditional expense 7.1Burden of proof (See, Burden of proof)Cases (See, Index of Cases and Chapter end

notes)Delays and costs 7.2Freedom of Information Act (FOIA) 8.13Generally (See, Appeals)Issues (See this index for particular issue of

concern)Jurisdiction, limited 7A.12.4Litigation risks 8.13Quality appraisal stressed 8.7Refund Claims, timely filed 7.6, 19.2.5Section 6166 review 27.11Valuation engineers 4.3

Taxable distribution (See, Generation-skipping transfer tax)

Taxable termination (See, Generation-skipping transfer tax)

Tenancy in commonCompared to FLPs and FLLCs 8.17Contribution to FLP 14.6Joint tenancy contrasts 13.1, 13.3, 13.5Valuation (See, Fractional interest discount)

Terminable interest rule (See, Marital deduction)

Three-year ruleControlled corporation 15.2Gift tax 15.2, 15.6,Gross up 15.6Life estate 15.2Life insurance policy transfers 12.1 Marital deduction problems 15.6, 21.8 Net gifts 6.7.11.2Phantom assets 15.6Reversionary interest 15.1Revocation power 15.1Schedule G reporting 15.1Scope 15.2Section 303 redemption qualification 15.2 Section 6166 15.2, 27.3Situs, foreign death tax credit 23.2 Special-use qualification 15.2

TimeForeign death tax credit 23.7, 23.8Generation-skipping transfer tax (See

Generation-skipping transfer tax)Indirect gift 6.7.3, 14.6, 14 Appendix 1Late allocation of GST exemption 25.8.6Late filing penalties (See, Late filing penalties)Non-resident U.S. citizen, filing due date 5.1Protective refund claims 19.2Refund claims (See Refund claims) Simultaneous death 21.4Special-use elections 9.4.1Step-transaction doctrine (See, Step

transaction)Thornton, Richard, CPA 9.2

Treaties (See, Foreign death tax credit)

Trigger Estate Tax Audits (See Audits and 4.6)

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-26

Trustee fees (See, Fiduciary fees)

TrustsBlended Family, benefits of 2.1, 7A.3.1Bypass Trust (See, Credit Shelter Trust)Charitable (See Charitable lead annuity trusts,

Charitable trusts, Charitable Remainder Trust)

Credit Shelter Trust (See, Credit Shelter Trust)Creditor protection 15.12, 20.1Crummey trusts 25.1, 25.2, 25.6.4, 25.7.3

(multiple transferors), 25.8 (exclusions and exemptions), 25.8.6 (timely or late allocations), 25.8.10 (ETIP), 25.9 (identity of transferor), 25.9.4 (lapsing power problem)

Development rights 26.3Direct gifting from living trust 15.8Discretionary, problems with special-use

elections 9.3, 9.8Division 15.5, 21.18Exemption Trust (See, Credit Shelter Trust)Funding (See, Funding)General partnership interest valuation 14.9General Power of Appointment Trust (See,

Power of Appointment)GST action steps for late allocation of GST

exemption 25.8.6GST definition of 25.6.9GST highlight checklist 25.2GST Trusts (See, Generation-skipping transfer

tax)IDGTs (See, Intentionally-defective grantor

trusts) Indirect ownership test for conservation

easement 26.5Living trust reporting 15.2Separate shares with GST 25.2, 25.6.4,

25.6.7, 25.7 (extensive), 25.7.1 (qualified severance), 25.7.2 (pecuniary bequests), 25.8.1, 25.8.4

Trytten, Steven E. 17 Appendix 1

Uniform Estate Tax Apportionment Act (2003) (See, Allocation of Taxes)

Uniform Principal and Income Act 21.6, 21.11, 21.11.1, 24.2

Uniform Transfers to Minors ActDiscussed 15.4Generation-skipping transfer tax trust 25.6.9,

25.8.1Present interest gift 6.3

Unpaid rentsReporting with real property valuation 8.5QPRT, 19.5.10

Unproductive property (See, Marital Deduction)

Unrelated business taxable income (UBTI) 22.6

ValuationAdjusted taxable gift adjustments on pre-1997

gifts 6.2Administrative expense deductions (See,

Administrative expense deductions)Adverse conditions with real property 8.3,

8.22Annuities 17.1, 17.2, 17.3, 17.5, 17.6Art and other collectibles 14.17.7, 14.17.7,

14.18Assignee interests 14.8, 14.9, 14.13Bank Accounts 11.2Building code compliance issues 8.22Built-in gain deduction 10.5C Corporation vs. S Corporation 10.5A

Cash-lease to non-family, special use 9.8Charitable deduction 22.4, 22.4.1, 22.4.2Comfort zone, no policy supporting 8.13Conservation easements 26.2, 26.6Contingent fee claims 14.17.1, 14.17.6Control premium (See, Control premium)Copyrights 14.17.5Cross-claims deductible amount 19.2.7Cross-claims impact on valuation in gross

estate 19.2.7Discounts (See, Discounts)Discretionary trusts and prior transfer credit

24.2Distribution preferences 14.11Dividends 10.2Downward gift tax adjustments on estate tax

return 6.6DSUEA reporting (See, Deceased Spousal

Unused Exclusion Amount (DSUEA))Economic interests (See, Assignee interests) Estate tax and gift tax valuation of loans

contrasted 11.4Expenses of sale, irrelevancy to valuation 8.3Fair market value (See, Fair market value)FLPs 14.13, 14 Appendix 1, 18.2Farm rental income and special-use elections

9.5, 9.7Financial condition and prospects 10.4First spouse death 8.20Five factors and special use 9.5, 9.7FLP Discount guidelines 14.13Foreign death tax credit 23.4, 23.5General partnerships 14.9GRATs 6.8 (and subsections), 15.9GST valuation (See, Generation-skipping

transfer tax)Hidden assets 14.18Highest and best use 8.4Indirect gifts (See, Step transaction), 6.7.3,

14.6, 14 Appendix 1 Investment FLPs and LLCs 14.13, 14 Appendix

1 IRS Valuation Guide 8.4 (real estate), 11.2

(promissory notes)Joint tenancies (See, Joint tenancies)Judgment issues 8.7Lack of Marketability discounts (See, Lack of

marketability discounts)Leases and material participation 9.8Legal issues 14.8Life insurance and mortality 25.8.6Litigation uncertainty 8.9Loans, estate tax and gift tax valuation of

contrasted (See, also Promissory notes) 11.4

Lottery winnings 17.6Malpractice claim 14.17.2Marital deduction funding 14.17, 14 Appendix

1, 21.18, 21.19Mellinger discounts with QTIP 3.1, 14.14Mineral rights 14.17.4Minority interest discounts (See, Minority

interest discounts)Miscellaneous 14.18Non-recourse versus recourse (See, Recourse

debt versus non-recourse debt) Oil and gas 14.17.4Options/Puts 10.13APaintings 14.17.7, 14.17.7.1, 14.18Partition as not sole measure of FID 8.11Partnerships 7A8.4.2, 7A.9, 7A.10.3, 7A.10.4,

14.9, 14.13, 14.20Patents 14.17.5Passion as element of valuation 14.17.7.1

Portability elections (See, Deceased Spousal Unused Exclusion Amount)

Post-death facts (See, Post-death facts) 8.6, 22.7

Prior transfer tax credit 24.2, 24.3 (mortality)Promissory notes 6.5, 11.2, 11.3, 11.5

(bequests to maker) Proprietorships 7A.8.4.2 (portability), 7A.9

(portability), 14.20 Restrictive agreements (See Restrictive

agreements)Rev. Rul. 59-60, discussed in detail 10.4S Corporations 10.5A (isolated discussion)Sales expense deduction denied 8.3Section 1016(c) basis election 9.10Section 6166 participation compared 9.8Securities, Chapter 10 (generally)Special-use valuation (See, Special-use

valuation)Split-interest gifts 22.4.1Spouse 9.2State law 8.2 (appraiser instructions and

interests), 8.12, 8.16 (debt), 8.14, 10.4 (impact of agreements), 11.3 (promissory notes), 14.8, 14.9 (generally)

Strategic buyer 8.2, 8.4Tiered discounts 14.15Trust ownership of general partnership

interests 14.9Underlying valuation 8.1Unpaid rent 8.5Zoning 8.4

Valuation EngineersConservation easement 26.6Credibility Issues 8.15, 26.6Expanded use 7.3Hazards of litigation, 7.2, 7.3Role for IRS 7.3, 8.15Scope of Assignment (full appraisal vs.

critique) 7.3Tax Court 4.3.4Taxpayer disclosure rights 8.15

Van Vleet, Dan R.S Corporation valuation 10.5ASEAM adjustment for tax factors 10.5A Vasquez, Juan F., Tax Court Judge 10.8 Built-in gain 10.5Deduction, accrued rent 19.5.10 Wergin, Ronald 27.2.4Wherry, Robert A., Tax Court Judge 8.7

(endnote)

Williams, Robin 7A.8.4.5

Williamson Act AgreementsAV Date, irrelevancy 8.23Built-in gain 10.5Wood, Natalie 3.1Wooden, John 14.17.7

Wrongful death claimsGross estate exclusion 14.17.3Funeral expense reimbursement 18.2

Yosemite National ParkAhwahnee Hotel 4.1Natural history 4.1Zeydel, Diana S. C. 16.6

THE OVATION O-27

Index Of CasesAbraham, Estate of v. Comr., 8.7, 10.10, 14.2,

14.4, 14.6, 14.14Adams v. Comr., 18.3.4Adams v. U.S., 14.3, 14.8, 14.9, 14.13Adams, Estate of v. Comr., 10.5A, 10.9Adell, Estate of v. Comr., 5.6, 5.8, 27.6Adler, Estate of v. Comr., 8.10, 14.4, 15.10Affelder v. Comr., 6.7.11Ahmanson Foundation v. U. S., 8.20, 10.12,

14.17.7, 19.2.2, 21.19, 21.24, 22.4Alden, Estate of v. Comr., 18.3.4Alexander, Estate of v. Comr., 21.7Alfaro v. Comr., 9.10, 19.3Allen v. U.S., 19.3Allison, Estate of v. Comr., 18.3.5Altendorf v. U.S., 18.3.3Ambase Corporation v. U.S., 19.3Amlie, Estate of v. Comr., 8.10, 10.15Anderson v. U.S., 14.13Andrews, Estate of v. Comr., 8.2, 8.4, 10.9Anthony v. U.S., 17.6Armstrong, Estate of v. Comr., 6.7.11.2Artall, Estate of v. Comr., 27.3Ashman, Estate of v. Comr., 8.20Astleford v. Comr., 8.2, 8.21, 14.8, 14.10,

14.15Aubin, Estate of v. Comr., 14.17Auker, Estate of v. Comr., 8.8, 8.16, 8.21Axtell v. U.S., 18.3.6Baccei v. U.S., 5.5Bach v. McGinnes, 22.2Bachler v. U.S., 25.4.2Baer Revocable Trust v. U.S., 8.3, 8.6, 21.12Baird, Estate of v. Comr., 7.3, 7.4, 8.10, 8.11,

8.12, 8 Appendix 2, 18.3.3Ballance v. U.S., 18.3.1, 18.3.6Ballard v. Comr., 11.4Ballard, Estate of v. Comr., 23.1Bankers Trust New York Corp. v. U.S., 19.3 Barge, Estate of v. Comr., 8 Appendix 1, 8

Appendix 2, 22.8Barnes v. Comr., 10.4Barr, Estate of v. Comr., 17.4.1Barton v. Comr., 18.3.6Barudin, Estate of v. Comr., 14.9, 14.13Bass v.Comr., 18.3.6Bates, Estate of v. Comr., 5.6, 19.5.9Beat v. U.S., 18.3.3, 21.1Bell, Estate of v. Comr. (1973), 17.3Bell, Estate of v. Comr. (1989), 27.7Bellingham First Fed. Sav. & Loan Assn. v.

Garrison, 8.16Bennett, Estate of v. Comr., 10.5, 10.9Benton, Estate of v. Sidner, 10.18Berkman, Estate of v. Comr., 18.2Berliant v. Comr., 18.3.1Bernier v. Bernier, 10.5ABies, Estate of v. Comr., 6.7.6Bigelow, Estate of v. Comr., 6.7.9, 6.9, 8.17,

14.2, 14.4, 14.5, 14.6, 14.7, 14 Appendix 1, 17.3

Bingaman v. Valley Sav. & Loan Assn., 8.16Bissell v. Forbes, 6.5.1Black, Estate of v. Comr., 14.2, 14.17, 18.3.1,

18.3.3, 18.3.6Blount, Estate of v. Comr., 10.13Boggs v. Boggs, 17.5Boltar LLC v. Comr., , 7.3, 8.7, 26.6

Bommer (Cameron W. Revocable Trust ) v. Comr., 27.15

Bond, Estate of v. Comr., 21.2Bongard, Estate of v. Comr., 6.7.9, 11.4, 14.4,

14.5, 14.6, 14.14, 14 Appendix 1, 17.3Bonner, Estate of v. U.S., 3.1Borgatello, Estate of v Comr., 10.9Borne v. U.S., 23.2Boryan v. U.S., 24.2Boyle v. U.S., 5.6Brandon, Estate of v. Comr., 19.2.2Branson, Estate of v. Comr., 7.6Bright, Estate of v. U.S., 6.6, 8.2, 8.20, 8

Appendix 1, 10.8, 11.5, 14.17.7Broadhead, Estate of v. Comr., 11.3Brocato, Estate of v. Comr., 8.2, 8.8, 8.11,

8.16, 8.21, 8 Appendix 1, 8 Appendix 2, 27.15

Broderick v. Gore, 10.15Brown v. U.S. (1985), 5.6Brown v. U.S. (2003), 15.6, 18.4, 19.2.3,

21.15,Browning v. Comr., 26.6Bryan, Estate of v. Comr., 20.2Buder, Estate of v. U.S., 21.11.2Bull v. Smith, 10.19Bull v.U.S., 21.11.2Bull, Estate of v. Comr., 8.6Bunney v. Comr., 17.5Burdick v. Comr., 22.2Burks v. U.S., 19.3Burnet v. Guggenheim, 11.4Busch, Estate of v. Comr., 8.10Butler v. Comr., 26.6Cafaro, Estate of v. Comr., 19.3, 19.5.5 Calcagno, Estate of v. Comr., 18.2Calder v. Comr., 14.17.7, 14.18 Campbell, Estate of v. Comr., 5.7Cardeza, Estate of v. Comr., 18.2Carlson v. U.S., 19.5.3Carpenter Family Investments, LLC v. Comr.,

19.3Carpenter, Estate of v. U.S., 14.4 Carr, Estate of v. Comr., 8.21Casey, Estate of v. Comr., , 15.3 Cavett, Estate of v. Comr., 13.3, 19.5.3 Central Trust Co. v. U.S., 10.4 Cervin, Estate of v. Comr., 6.6, 8.10, 8

Appendix 2Chancellor v. Teel, 9.3Chancellor, Estate of v. Comr., 16.2Chapman v. U.S., 19.3Chatten v. Martell, 14.6Cheng Van, Estate of v. Comr., 14.4, 15.10Chenoweth, Estate of v. Comr., 8.20, 21.19Chevron U.S.A., Inc. v. Natural Resources

Defense Council, 9.4.4, 18.1, 19.1, 19.3Christiansen, Estate of v. Christiansen, 15.3Christiansen, Estate of v. Comr., 6.7.5, 19.3,

21.23, 22.2, 22.5, 22.7, 22.8Church v. U.S., 14.6, 14.7Clark v. Lachenmaier, 8.16Cleveland v. Higgins, 18.3.3Cleveland, Estate of v. Comr., 11.3, 21.11Clinard, Estate of v. Comr., 9.3Cloutier, Estate of v. Comr., 10.9, 10.13Cluck, Estate of v. Comr., 8.20Cockerell v. Title Ins. & Trust Co., 14.6Colony, Inc. v. Comr, 19.3

Commercial Discount Co. v. Cowen, 14.6Commonwealth of Massachusetts v. U.S.

Department of Health & Human Services, 21.1

Comr. v. Bosch (Estate of), 6.7.4, 14.17, 15.3, 19.2.2, 21.24, 25.5

Comr. v. Culbertson, 14.3Comr. v. Hubert (Estate of), 21.15Comr. v. National Alfalfa Dehydrating and

Milling Co., 14.4Comr. v. Newman, 21.18Comr. v. Procter, 6.7.5, 22.7Comr. v. Shivley (Estate of), 19.2.3Comr. v. State Street Trust Co., 19.2.3, 19.2.10 Comr. v. Wemyess, 15.5BConcordia, Estate of v. Comr., 13.3, 18.3.6 Cook, Estate of v. Comr., 17.6Cooley v. Comr., 14.17.7Costanza, Estate of v. Comr., 6.11Courtney, Estate of v. Comr., 8.16, 8.18 Cristofani, Estate of v. Comr., 6.3, 16.4 Crocker v. Comr., 5.8Crosby, Estate of v. U.S., 11.3Crowther v. Comr., 7.2Crummey v. Comr., 6.3, 14 Appendix 1, 16.4,

16.5, 16.11Curry, Estate of v. Comr., 10.12, 14.17.2Dailey, Estate of v. Comr., 7.2, 14.3, 14.13Dallas v. Comr., 10.5ADaubert v. Merrell Dow Pharm., Inc., 8.7,

26.6Davenport, Estate of v. Comr., 17.2.1, 18.2Davidson, Estate of v. Comr., 6.11, 11.3Davis, Estate of v. Comr. (1986), 9.3Davis, Estate of v. Comr. (1998), 10.5, 10.13ADavis, Estate of v. Comr. (9th Cir. 2005), 21.2,

21.12Dawn Investment Co., Inc. v. Sup. Ct, 8.16De St. Aubin, Estate of v. Comr., 9.3Delaware Open MRI Radiology Associates, P.A.

v. Kessler, 10.5ADeputy, Estate of v. Comr., 7.2, 10.4Derksen, Estate of v. U.S., 19.2.1Desmond, Estate of v. Comr., 8.3, 8.6, 8.7,

10.4Dickerson v. Comr., 14.9Dickow, Estate of v. Comr., 18.3.2, 19.3Diedrich v. Comr., 6.7.11.1, 15.6DiSanto, Estate of v. Comr., 8.20, 14.17.7,

21.19Disbrow, Estate of v. Comr., 14.4Dixon, Estate of v. Comr., 7A.8.4.1Dockery v. Comr., 10.8Dodge v. U.S., 6.7.4Donovan,Estate of v. U.S., 17.6Doster, Estate of v. Comr., 5.5, 5.6, 5.8, 27.6,

27.9Dougherty, Estate of v. Comr., 10.9Drazen v. Comr., 13.5Duncan, Estate of v. Comr., 18.3.6Dunn, Estate of v. Comr., 3.3, 10.5Eddy, Estate of v. Comr., 7A.8.4.1Edwards, Estate of v. Comr., 8.6, 8.7Egelhoff v. Egelhoff, 17.5Eisenberg v. Comr., 10.5, 10.9Elkins, Estate of v. Comr., 8.20, 10.3, 10.15,

14.7.7, 14.18Endicott Trust Co. v. U.S., 13.3 Engelman, Estate of v. Comr., 22.2 Erhardt v. Leonard, 13.4

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-28

Erickson, Estate of v. Comr., 14.4, 14.6, 18.3.6ESB Financial v. U.S., 22.5Fabric, Estate of v. Comr., 17.3Fagan, Estate of v. Comr., 22.4.2Farnam, Estate of v. Comr., 27.3Fawcett, Estate of v. Comr., 8.16, 8.18Feldmar, Estate of v. Comr., 10.4, 21.19Fidelity Fed. Sav. & Loan Ass’n. v. de la

Cuesta, 8.16Fidelity-Philadelphia Trust Co. v. Smith, 17.3Finfrock v. U.S., 9.4.4First American Title Insurance Co. v. U.S.,

27.8Fish v. U.S., 16.8Fisher v. U.S., 6.7.3, 9.3, 10.15, 14.13Flanagan v. U.S., 22.2Flanders v. U.S., 8.23.4Folks, Estate of v. Comr., 8.8, 8.16, 8.21, 10.9Fondren v. Comr., 6.3Fontana, Estate of v. Comr., 3.1, 7A.7, 21.9Foote v. Comr., 10.19Forbes, Estate of v. Comr., 8.10Ford, Estate of v. Comr., 10.4Forward Communications Corp. v. U.S., 10.4Foster, Estate of v. Comr., 8.3Frane v. Comr., 6.11Fratini, Estate of v. Comr., 8.14, 13.1, 13.3Frazee v. Comr., 8.4, 11.4Friedman, Estate of v. Comr., 11.4Frinfrock, Estate of v. U.S., 19.3Fuchs, Estate of v. Comr., 12.3Fuertes, Estate of v. U.S., 5.6Fujishima, Estate of v. Comr., 12.3, 18.3.1,

19.5.9Fung, Estate of v. Comr., 8.16, 8.20Furman v. Comr., 4.3.4, 7.3, 8.15, 10.8, 10.9Gagliardi, Estate of v. Comr, 11.2Galewitz, Estate of ???, 10.18Gallagher, Estate of v. Comr., 10.5AGamble, Estate of v. Comr., 19.5.6Gavin, Estate of v. Comr., 9.8, 9.9German, Estate of v. U.S., 15.12Geroge, Estate of v. Comr., 3.1Gerson, Estate of v. Comr., 25.4.2Gettysburg National Bank v. U.S., 9.4.4Gibbs, Estate of v. U.S., 9.9, 26.10Gilford, Estate of v. Comr., 10.19Gill v. Office of Personnel Management, 21.1Gill, Estate of v. Comr., 18.3.3Gilman, Estate of v. Comr., 18.3.2, 18.3.4,

18.3.6Gimbel, Estate of v. Comr., 8.2, 8.3, 10.4,

10.19Giselman, Estate of v. Comr., 10.4Giustina, Estate of v. Comr., 8.2, 10.3Glass v. Comr., 26.7Glover, Estate of v. Comr., 14.17.1, 14.17.2Goldberg, Estate of v. Comr., 8.14, 13.1Goldenberg v. Landon, 14.6, 14.12Golinski v. Office of Personnel Management,

21.1Golsen v. Comr., 17.3, 19.2.10, 19.3, 21.11.1Goodall, Estate of v. Comr., 14.17.4Gore, Estate of v. Comr., 9.3, 14.6Graegin, Estate of v. Comr., 18.3.6Grant v. Comr., 13.5Grant, Estate of v. Comr. , 18.3.1, 18.3.3Gray v. Comr., 10.5, 10.9, 11.3Great Northern Nekoosa Corp. v. U.S., 26.7Greco v. Oregon Mut. Fire Ins. Co., 14.6Green, Estate of v. Comr. (1975), 13.4Green, Estate of v. Comr. (1995), 12.5Green, Estate of v. Comr. (2003), 10.8, 25.12

Greene v. U.S., 14.17, 19.3Gregory v. Helvering, 21.18Gribauskas, Estate of v. Comr., 17.6Grootemaat, Estate of v. Comr., 8.16, 8.21Gross v. Comr., 10.5A, 14.6, 14.7, 14.9Grothe v. Cortlandt Corp., 13.8Gumps v. Comr., 10.6Hackl v. Comr., 6.7.3, 6.9, 9.3Hagans v. Andrus, 21.24Hagmann,Estate of v. Comr., 19.2.3Hall, Estate of v. Comr., 10.4, 10.14Hancher, Estate of v. U.S., 24.6Hansen, Estate of v. Comr., 8.2, 14.6, 14.9Harbison (Estate of Minor) v. U.S., 22.5Harden, Estate of v. Comr., 20.2Harper, Estate of v. Comr., 11.5, 14.4, 14.5,

14.6, 14.7, 14.8, 14.9, 14.10, 14.14Harrison, Estate of v. Comr., 2.3, 6.7.11, 24.3Harvey v. Comr., 14.3Harvey v. U.S., 13.3Harwood v. Comr., 6.7.5Hawkins, Estate of v. U.S., 18.3.3Headrick, Estate of v. Comr., 12.3Heck, Estate of v. Comr., 10.4, 10.5A, 10.8Heckerman v. U.S., 6.7.9, 14.6Heggstad, Estate of v. Comr., 14.6Helis v. U.S., 18.3.6Hendrickson, Estate of v. Comr., 8.18Hendrix v. Comr., 6.7.5Herbert v. Comr., 7.2Hess v. Comr., 10.8Hester, Estate of v. U.S., 14.17, 19.5.11Hibernia Bank v. U.S., 18.3.1, 18.3.6Hicks, Estate of v. Comr., 19.5.10Higgins v. Comr.,, 7.3Hillgren, Estate of v. Comr.,, 7.2Hinz, Estate of v. Comr., 5.6, 5.7, 8.3, 27.2Hinze v. U.S., 17.4.1Hoffman, Estate of v. Comr., 11.3, 11.4Hohenstein, Estate of v. Comr., 9.8Holland, Estate of v. Comr., 6.3, 16.4, 18.3.7Holman v. Comr., 6.7.3, 6.7.9, 10.15, 11.3,

14.6, 14.13Home Concrete & Supply, Inc., et al. v. U.S.,

19.3Hoover, Estate of v. Comr., 9.6Hornor, Estate of v. Comr., 6.7.11.3Houston, Estate of v. Comr., 14.17.3Howard, Estate of v. Comr., 21.11.1Howell v. Dudley, 18.3.3Huber v. Comr., 10.15, 21.15Huene v. Comr., 8.20Hughes v. Comr., 26.6Hughes, Estate of v. Comr., 19.5.10Hull v. U.S., 10.19Hunt v. Comr., 11.4Huntington, Estate of v. Comr., 19.2.1Huntsman, Estate of v. Comr., 12.7Hurford, Estate of v. Comr., 4.7, 6.7.9, 6.9,

14.6, 14.14, 14.17, 15.5A, 15.5B, 15.13, 17.3, 21.22

Hutchens Non-Marital Trust v. Comr., 10.13A, 22.4

Income Realty & Mortgage, Inc. v. Columbia Savings & Loan Assoc., 8.16

Irby v. Comr., 7A.8.4.2IRS v. Skiba (In re Roth), 27.8Irwin S. Kalman, Estate of v. U.S., 5.2Ithaca Trust v. Comr., 8.6, 19.2.3, 19.2.8Jackson, Estate of v. U.S., 22.2Jacobs v. Comr., 18.1, 19.2, 19.2.3, 19.2.10,

19.3, 19.5.5Jacobs v. U.S., 18.3.1Jameson, Estate of v. Comr., 8.2, 8.4, 8.20,

10.3, 10.5Janda v. Comr., 10.8Janis v. Comr., 1.3, 8.20Jelke, Estate of v. Comr., 10.5Jenner, Estate of v. Comr., 18.3.1, 18.3.6Jennings v. Smith, 14.4Jensen, Estate of v. Comr., 10.5Jephson, Estate of v. Comr. (1983), 8.6Jephson, Estate of v. Comr. (1986), 10.9Jeschke v. Comr., 13.3Johnson, Estate of v. U.S., 22.2Johnston, Estate of v. Comr., 8.16Jones v. H.F. Ahmanson & Co., 10.8Jones, Estate of v. Comr., 6.7.9, 10.4, 10.6,

14.5, 14.6, 14.9, 14.10Jordahl, Estate of v. Comr., 15.11Jorgensen, Estate of v. Comr., 14.2, 14.5, 14.6,

14 Appendix 1Jung, Estate of v. Comr., 8.6, 10.4, 10.6Kahanic, Estate of v. Comr., 14.14Kahn v. Comr., 17.5Kahn, Estate of v. Comr., 10.6Kapala, Estate of v. Comr., 10.18Kaufman, Estate of v. Comr., 8.2, 8.20, 10.3,

10.4, 14.17.7Keller v. U.S., 14.2, 14.13, 18.3.3, 18.3.4,

18.3.6, 20.3Kelley, Estate of v. Comr., 14.6, 14.13Kenan v. Comr., 2.6, 14.17Kerr v. Comr., 10.4, 14.5, 14.8, 14.9, 14.10Kessler v. U.S., 18.3.3Kikalos v. Comr., 19.3Kimbell v. U.S., 14.5, 14.6King v. U.S., 6.7.5Kite, Estate of v. Comr., 15.5,15.5A,15.5B,

15.5C, 16.3Kiva Dunes Conservancy, LLC. v. Comr.,

26.3.2,26.6Klauss v. Comr., 10.4Knappe v. U.S., 5.6Knight v. Comr., 6.7.5, 8.3, 14.5, 14.6, 14.7,

14.10, 14.13Knox-Powell-Stockton Co., 19.2.10Knudsen v. Comr., 7.2Kohler v. Comr., 8.16, 8.23.4Kohlsaat, Estate of v. Comr., 6.3, 16.4Koons, Estate of v. Comr., 10.3, 10.7, 14.13,

18.3.6Korby, Estate of v. Comr., 7.2, 14.6Krabbenhoft v. Comr., 11.4Krause v. Comr., 12.5Kunze v. U.S., 9.4.4Kurihara, Estate of v. Comr., 18.3.1Kurz, Estate of v. Comr., 7A.3.2Kyle, Estate of v. Comr., 19.2.3, 21.9.2, 21.11La Meres, Estate of v. Comr., 22.5Lafargue v. Comr., 17.3Landers, Estate of v. Comr., 5.6Lang, Estate of v. Comr., 19.5.6Langer, Estate of v. Comr., 8.2Lappo v. Comr., 14.3, 14.13, 14.15LaSala, Estate of v. Comr., 24.5Lasarzig, Estate of v. Comr., 18.3.6, 20.3Lauder, Estate of v. Comr., 10.14Laycock v. Hammer, 14.17Lazarus v. Comr., 17.3Le Caer, Estate of v. Comr., 24.5Leavenworth National Bank & Trust Co., Inc.,

v. U.S., 21.8Leder, Estate of v. Comr., 12.3Lee v. Yang, 13.4Lee, Estate of v. Comr. (1978), 10.4, 10.11,

21.19Lee, Estate of v. Comr. (2007), 21.4,

THE OVATION O-29

Leewitz v. U.S., 20.2Lefever, Estate of v. Comr., 9.10Lefrak v. Comr., 8.5, 8.12, 8 Appendix 1Leichter, Estate of v. Comr., 8.6, 8.7, 10.4Lenheim, Estate of v. Comr., 10.8Letts, Estate of v. Comr., 8.20, 21.22Levin v. U.S., 11.3Levine v. U.S., 18.3.3Levy v. U.S., 8.6, 14.13Levy, Estate of v. Comr., 12.5Lewis G. Hutchens Non-Marital Trust v. Comr.,

21.19Lewis v. Reynolds, 19.2.5Liftin, Estate of v. U.S., 5.6Liljestrand, Estate of v. Comr., 14.6Lilly v. Smith, 13.4Lindberg v. U.S., 19.2.1Linton v. U.S., 14.6Lippert v.Comr., 6.7.4Litchfield, Estate of v. Comr., 7.2, 8.20, 10.5,

10.5ALitman v. U.S., 10.13ALittick, Estate of v. Comr., 10.14Little, Estate of v. Comr., 10.19Livermore, Estate of v. Comr., 4.3.4, 14.17.4Lloyd, Estate of v. U.S., 24.2Lockett, Estate of v. Comr., 6.5.1, 11.3, 11.4,

14.6, 14.9, 18.3.1, 18.3.4, 18.3.7Loeb v. McCaughn, 18.2Long Term Capital Holdings, et. al. v. U.S., 7.2Lopes, Estate of v. Comr., , 3.1Love, Estate of v. Comr., 18.3.1, 18.3.5LTV Corp. v. Comr., 8.3Ludwick v. Comr., 7.1, 8.11, 8.20, 8 Appendix

2, 10.3, 14.17.7Lundquist v. U.S., 11.4Lurie, Estate of v. Comr., 15.6, 21.8, 21.15Luton, Estate of v. Comr., 10.5, 10.9Lyman v. Comr., 20.2MacDonald, Estate of v. MacDonald, 17.5Madden v. Comr., 13.3Maddox, Estate of v. Comr., 9.6Maggos v. Comr., 6.7.4, 6.7.7Magill v. Comr., 18.3.1Malkin, Estate of v. Comr., 6.7.7, 7.2, 8.16,

11.3, 14.2, 14.6, 14.9Mandelbaum v. Comr., 10.8, 10.9Mangiardi, Estate of v. Comr., 5.6Maniglia, Estate of v. Comr., 14.7Mapes, Estate of v. Comr., 8.23Marcus v. DeWitt, 18.3.1, 18.3.5Marmaduke, Estate of v. Comr., 10.4Martin Ice Cream Company v. Comr., 7.2Massachusetts v. U.S. Department of Health &

Human Services, 21.1Maxfield (In re Estate of), 13.4May v. McGowan, 10.14Mayo Foundation for Medical Education &

Research v. U.S., 9.4.4, 18.1, 19.1, 19.3, 25.4.2

McAlpine, Estate of v. Comr., 9.4.1McClatchy, Estate of v. Comr., 10.19, 11.5,

14.8McCord v. Comr., 6.7.5, 6.7.11.2, 7.2, 10.5,

14.8, 14.9, 22.7McCormick, Estate of v. Comr., 14.9McDonald v. Comr., 19.3McDonnell v. U.S., 19.3McGill, Estate of v. Comr., 10.4McGlue, Estate of v. Comr., 14.17.1McKee, Estate of v. Comr., 18.3.6McLaughlin, Estate of v. McLaughlin, 18.3.1McLendon, Estate of v. Comr., 14.8, 14.9, 17.3McMillan v. U.S., 7A.10.1

McMorris, Estate of v. Comr., 14.17, 19.2.3, 19.2.10, 19.3, 19.5.6

McNeeley, Estate of v. U.S., 27.2.2Mellinger, Estate of v. Comr., 3.1, 3.2, 3.3,

7A.7, 8.20, 10.11, 14.6, 14.9, 14.15, 14.16, 16.11,21.9, 21.9.2, 21.13.2, 21.19, 21.26, 25.9.1

Mesa Verde Construction Co. v. Northern California District Council of Laborers, 19.3

Metcalf, Estate of v. Comr., 19.2.10Meyer, Estate of v. Comr., 2.3, 24.5Miglio, Estate of v. U.S., 24.5Miller v. Comr. (1977), 10.4Miller v. Comr. (1996), 6.5.1, 11.3Miller v. U.S., 9.4.4, 9.10, 18.3.6, 19.5.10Miller, Estate of v. Comr., 11.4, 14.2, 14.6,

14.13, 21.10Millikin, Estate of v. Comr., 18.3.1, 18.3.7Minahan, v. Comr., 6.6, 8.2, 8 Appendix 2,

10.8Minter, Estate of v. U.S., 9.8Mirowski, Estate of v. Comr., 14.4, 14.5, 14

Appendix 1Mitchell (James), Estate of v. Comr., 8.3, 8.7,

8.10Mitchell v. U.S., 8.4Mitchell, Estate of v. Comr., 8.2, 10.3, 10.4,

14.17.7, 17.3Mohamed v. Comr., 26.6Monroe, Estate of v. Comr., 25.12Mooneyham v. Comr., 8.10, 10.8Moore v. Comr., 14.13Moore, Estate of v. Comr., 19.2.1Morgens, Estate of v. Comr., 6.7.11.2, 15.5A,

15.6Morris v. Comr., 17.5Morrissey v. Comr., 8.2, 8.6, 10.3, 10.4, 10.15Moss, Estate of v. Comr., 6.11Muegge v. Comr., 19.2.1Murphy v. U.S., 18.3.6Murphy, Estate of v. Comr. (1979), 25.4.3Murphy, Estate of v. Comr. (1990), 10.9, 14.5Naify Revocable Trust v. U.S., 19.2.3,19.5.6National Muffler Dealers Assn. Inc. v. U.S.,

19.3Naumoff v. Comr., 16.4Neal v. U.S., 6.7.4, 19.3Necastro, Estate of v. Comr., 8.3, 8.6, 8.22Neff, Estate of v. Comr., 10.4Negron v. U.S., 17.6Nesselrodt, Estate of v. Comr., 19.2.3Newcomer, Estate of v. U.S., 10.4Newhall Unitrust v. Comr., 22.6Newhouse, Estate of v. Comr., 8.2, 8.16, 10.4,

10.8, 10.9, 10.12Newman,Estate of v. Comr., 19.5.1Nichols v. Ann Arbor Sav. & Loan Assn., 8.16Noble, Estate of v. Comr., 8.2, 8.4, 10.4Northeastern Pennsylvania National Bank &

Trust Company v. U.S., 15.9Northern Trust Co. v. U.S., 22.2Novotny, Estate of v. Comr., 15.5A, 15.5B,

21.11, 21.22Nowell, Estate of v. Comr., 3.1, 14.8, 14.9O’Keeffe, Estate of v. Comr., 8.21, 14.17.7,

14.18O’Neal, Estate of v. U.S., 14.17, 19.2.10,

19.5.6Oetting v. U.S., 22.5Old Colony Trust Co. v. U.S., 18.3.3Olsen, Estate of v. Comr., 14.17Palmer v. Comr., , 7.3Papson, Estate of v. Comr., 18.3.4, 18.3.7Park, Estate of v. Comr., 18.3.1

Pascal, Estate of v. Comr., 8.3Patton v. First Federal Savings & Loan Assn.,

8.16Paul Mitchell, Estate of v. Comr., 7.2Paxton, Estate of v. Comr., 15.12Payne v. U.S., 8.3, 18.3.5Peacock, Estate of v. U.S., 21.11Pennoyer v. Neff, 25.12Peracchio v. Comr., 14.3, 14.10, 14.13Perry, Estate of v. Comr., 12.3Peterson Marital Trust v. Comr., 25.4.2Petter, Estate of v. Comr., 6.7.5, 19.3, 22.7Pickett v. U.S., 18.3.6Pierre v. Comr., 11.4, 14.6Pillsbury, Estate of v. Comr., 8.3, 8.6, 8.10,

8.22, 10.4Pitner v. U.S., 18.3.1, 18.3.3, 18.3.5, 18.3.6,

18.3.8Pliske, Estate of v. Comr., 9.3Pollack, Estate of v. Comr., 24.2Porter, Estate of v. Comr., 17.4.1Posen, Estate of v. Comr., 18.3.1, 18.3.5Price v. Comr., 6.7.3Pritchard v. Comr., 25.8.6Proios, Estate of v. Comr., See TavlariosPropstra v. U.S., 6.6, 8.2, 8.10, 8.14, 8.16,

8.18, 10.11, 14.17, 19.2.3, 19.2.10, 19.5.3, 19.5.5

Prudowsky, Estate of v. Comr., 15.4Randolph v. Comr., 6.5.1Rapp, Estate of v. Comr., 19.2.2Ray, Estate of v. U.S., 14.4, 18.3.6Rector, Estate of v. Comr., 14.2, 14.4, 14.6,

18.3.6Redlark v. Comr., 18.3.6, 19.3Reed v. U.S., 24.6Reichardt, Estate of v. Comr., 7.1, 14.5, 14.6,

14.10Reilly v. U.S., 7A.12.4Reilly, Estate of v. Comr., 18.3.3Richards, Estate of v. Comr., 14.17Richey, U.S. v. Richey, 26.6Richmond, Estate of v. Comr., 10.5, 10.8, 10.9Ridenour, Estate of v. U.S., 5.8Riese, Estate of v. Comr., 14.4, 15.10, 19.5.10Rinaldi, Estate of v. U.S., 10.17, 15.5B, 21.22Ringgold Telephone Co. v. Comr., 8.2Robert v. U.S., 7.3Robinson v. Comr., 9.10, 19.2.2Robinson, Estate of v. Comr., 11.3Rodgers, Estate of v. Comr., 8.21, 10.4Rosano v. U.S., 19.5.1Rosen, Estate of v. Comr., 11.4, 14.6Roski, Estate of v. Comr., 27.9, 27.11Rothgery v. U.S., 18.3.3Rothman v. Comr., 26.6Rupert v. U.S., 18.3.6Rushton v. Comr., 10.19Sachs, Estate of v. Comr., 6.7.11.2, 15.6,

19.2.3, 19.2.10Salsbury, Estate of v. Comr., 10.12, 21.19Sanders v. Hicks, 8.16Sanders, Estate of v. Comr., 6.6Sanford, Estate of v. Comr., 6.5.3, 11.4, 11.5Sather v. Comr., 6.7.6, 12.5Saunders v. Comr., 19.2Saylors, Estate of v. Saylors, 10.18Schauerhamer, Estate of v. Comr., 6.7.9, 14.5,

14.6, 14 Appendix 1Scheidelman v. Comr., 7A.8.4.2Schott v. Comr., 6.8.2, 15.9Schroeder v. U.S., 21.24Schuler v. Comr., 6.7.6Schurtz, Estate of v. Comr., 8 Appendix 1

ESTATE PLANNING AT THE MOVIES® — ART OF THE ESTATE TAX RETURNO-30

Schuster v. Comr., 27.15Schusterman v. U.S., 11.4Schutt, Estate of v. Comr., 14.13Schwan, Estate of v. Comr., 14.17.7, 21.19Schwartz, Estate of v. Comr., 23.2Searles v. Searles, 14.17Segerstrom v. U.S., 7.2, 8.8, 14.6, 14.12Seinfeld v. Bartz, 10.13ASeltzer v. Comr., 10.14Senda v. Comr., 14.6Shackelford, Estate of v. U.S., 17.6Shapiro, Estate of v. U.S., 19.5.3Sharp, Estate of v. Comr., 14.17.1Shelfer, Estate of v. Comr., 21.11.1Shepherd v. Comr., 11.4, 14.6Shlensky, Estate of v. Comr., 20.2Shurtz, Estate of v. Comr., 14.6, 14.17, 21.19,

22.8Simplot, Estate of v. Comr., 8.2, 10.3, 10.8,

10.12Simpson v. U.S., 25.4.2Skiba v. IRS (In re Roth), 27.9Slocum v. U.S., 10.14Smith (Estate of Crosby) v. U.S., 11.3Smith, Estate of v. Comr. (1990), 6.6Smith, Estate of v. Comr. (1999), 10.4, 10.8,

14.17, 18.3.1, 18.3.5, 18.3.6, 19.2.3, 19.2.10, 19.5.6

Smith, Estate of v. U.S., 10.6, 14.10Smoot, Estate of v. U.S., 9.3Snyder v. Comr., 8.2, 10.13ASnyder, Estate of v. U.S., 20.1Soltermann v. U.S.,, 7.2Sommers, Estate of v. Comr., 15.1Southard, Estate of v. U.S., 14.17, 19.5.11Sowder v. U.S., 21.4Spader v. McNell, 14.17St. Louis Bank v. Comr., 10.14Stanley Works v. Comr., 9.2Steinberg v .Comr., 6.7.11.2Stephens, Estate of v. Comr., 15.3Stern v. Comr., 17.3Stern, Estate of v. Dep’t of Texas, 19.2.1,19.5.9Stevens v. U.S., 7.6Stevens, Estate of v. Comr., 8.5, 8.10, 8.16, 8

Appendix 1Stewart, Estate of v. Comr., 8.10, 14.4, 14.6,

15.10Stick, Estate of v. Comr., 18.3.6Stone v. U.S., 8.2, 14.17.7Stone, Estate of v. Comr., 6.9, 8.21, 14.6Strangi, Estate of v. Comr., 6.9, 14.4, 14.5,

14.6, 14.7, 14.10, 14.13, 14.14, 18.3.6Street v. U.S., 18.3.3Strickland, Estate of v. Comr., 9.5Strock, Estate of v. U.S., 22.2Sturgis, Estate of v. Comr., 9.10, 18.3.6Sullivan, Estate of v. Comr., 10.19Sunburst Bank v. Executive Life Ins. Co., 14.6Swanson, Estate of v. U.S., 15.3Swartzbaugh v. Sampson, 8 Appendix 1Symington v. Comr., 8.4Talman v. U.S., 21.11.1Tamulis, Estate of v. Comr., 22.5Tanenblatt, Estate of v. Comr., 8.7, 8.23, 14.8,

14.13Tavlarios (Estate of Proios) v. Comr., 23.7Tehan, Estate of v. Comr., 14.4Temple v. U.S., 14.6, 14.9, 14.13, 14.15Tenhet v. Boswell, 13.8Terrene Investments, Ltd. et. al., v. Comr.,

14.17.4Theis, Estate of v. Comr., 19.4Thompson v. Comr., 4.3.4

Thompson, Estate of v. Comr., 9.3, 9.10, 14.4, 14.5, 14.6, 18.3.6

Thouron, Estate of v. U.S., 5.5, 5.6Timken, Estate of v. U.S., 25.4.2Todd, Estate of v. Comr., 18.3.6, 21.2Tompkins, Estate of v. Comr., 21.2Touche v. Comr., 6.7.4Trenchard, Estate of v. Comr., 10.12Trombetta, Estate of v. Comr., 6.7.4, 14.4,

14.6, 17.3, 19.4, 22.2Trompeter, Estate of v. Comr., 10.3, 14.18,

18.3.3True, Estate of v. Comr., 10.4, 10.14, 10.15,

11.4Trust Services of America, Inc. v. U.S., 10.12,

27.15Tuck, Estate of v. Comr., 18.2Tucker v. Pulask Fed. Sav. & Loan Assn., 8.16Turner v. U.S., 9.10, 18.3.8Turner, Estate of v. Comr., 6.7.3, 14.2, 14.6,

14 Appendix 1, 21.19U.S. and Goldenberg v. Landon, 14.6U.S. v. Bevan, 2.6U.S. v. Botefuhr, 6.7.11U.S. v. Boyle, 5.1, 5.5, 5.6U.S. v. Cartwright, 8.2, 10.2, 11.2U.S. v. Denison, 24.5U.S. v. Grace (Estate of), 12.5U.S. v. McKay, 8.8, 14.12U.S. v. O’Malley, 14.4U.S. v. Richey, 8.8, 14.12, 26.6U.S. v. Simmons, 8.3U.S. v. Windsor, 6.8.1, 7A.8.4.3, 7A.8.4.4,

7A.8.4.5, 13.3A, 21.1Upchurch v. Comr., 19.2.2Upjohn Co. v. U.S., 7.2, 8.8Vale (In Re), 9.10Van Alen v. Comr., 7A.10.1, 8.7, 8.20, 9.11Van Horne, Estate of v. Comr., 8.18, 14.17,

19.2.3, 19.2.8, 19.2.10, 19.5.2, 19.5.3 Van Loben Sels v. Comr., 8.10Vaughn v. Bernhardt, 13.4Walker v. Comr., 7.2Wall v. Comr., 10.5AWalsh v. Lonsdale, 14.17Walshire v. U.S., 22.7Walton v. Comr., 6.8.2, 6.8.3, 15.9, 19.3 Wandry v. Comr., 6.7.5, 6.8.8Ward v. Comr., 6.7.5Waring v. Comr., 5.7Wechsler v. Wechsler, 10.5Weil, Estate of v. Comr., 10.14 Weinberg, Estate of v. Comr., 8.17, 14.3,

14.13, 14.15Weinstein, Estate of v. U.S., 24.2Welch, Estate of v. Comr., 10.5Wellenkamp v. Bank of America, 8.16Whelan v. U.S., 16.2Wilbanks, Estate of v. Comr., 5.5Wilder v. Comr., 14.17, 19.2.3Williams, Estate of v. Comr. (1998), 8.5, 8.10,

8.23.4, 8 Appendix 1Williams, Estate of v. Comr. (2009), 22.2, 22.5Wimmer, Estate of v. Comr., 6.7.3Windsor v. U.S. (See also U.S. v. Windsor),

7A.8.4.1, 21.1, 21.18, 21.25Wineman, Estate of v. Comr., 6.7.7, 8.12, 9.5,

9.8Winer v. U.S., 19.2.3Winford, Estate of v. U. S., 5.8Winkler, Estate of v. Comr. (1989), 10.8, 10.11 Winkler, Estate of v. Comr. (1997), 14.9 Woebling, Estate of v. Comr., 6.8.8, 11.3 Wooler, Estate of v. U.S., 5.6

Wraith, Estate of v. U.S., 24.2Young, Estate of v. Comr., 8.14, 13.1, 13.3Young, Estate of v. U.S., 5.6Zeigler v. Bonnell, 13.8Zlotowski, Estate of v. Comr., 5.6

THE OVATION O-31

Index Of Movies (and Television Shows)Adventures of Don Juan, The, 14.4 Airplane, 21.19Alice in Wonderland, 2.1, 2.4, 3.1, 5.0, 5.4,

7A.12.2, 26.1, 27.5All Quiet on the Western Front, 1.1Almost Famous, 14 Appendix 1Anatomy of a Murder, 7.1Animal House, 8.8Apocalypse Now, 25.1, 25.1AApollo 13, 19.5.6Around the World in 80 Days, 5.1Austin Powers: International Man of Mystery,

18.1Avatar, 10.13Back to the Future, 25.1Beautiful Mind, A, 6.7.5Because I Said So, 19.3Billy Madison, 10.1, 11.5Black Swan, 3.3, 7A.2, 7A.15, 11.3, 18.3 Blazing Saddles, 14.6, 14.17Bleak House, 8.11, 18.3.3Blind Side, The, 22.7Body Heat, 6.5Born Rich, 16.1Bourne Identity, The, 23.2Bourne Supremacy, The, 23.2Bourne Ultimatum, The, 23.2Boys’ Town, 22.1Brother, Can You Spare a Dime? 18.3.4 Bucket List, The, 23.1Bus Stop, 25.12Butch Cassidy and the Sundance Kid, 14.1 Butler, The, 1.5Cabaret, 11.1, 11.7Caddyshack, 24.2Caine Mutiny, The, 4.1, 4.6Casablanca, 2.3, 22.7Casino, 12.1, 12.12, 14.8Catch Me If You Can, 26.6Chariots of Fire, 1.1Charlie and the Chocolate Factory, 11.1 Christmas Carol, A (1938), 18.3.3 Christmas Carol, A (1951), 18.3.3 Christmas Carol, A (2009), 18.3.3 Christmas Carol: The Movie (2001), 18.3.3 Christmas Story, A, 13.1, 13.3, 13.4, 14.18 Cinderella, 2.1, 8.13, 21.9, 21.9.2, 21.19, 27.5 Cool Hand Luke, 9.5, 25.1Defiant Ones, The, 27.8Desert Fox: The Story of Rommel, The, 22.2 Dinner at Eight, 18.3.4Dirty Dancing, 10.5Dirty Harry, 5.3Divorce American Style, 21.1Dr. No, 18.1Dragnet, 4.7East of Eden, 6.8.1, 9.2Easy Rider, 27.9Electric Horseman, The, 14 Appendix 1 Elf, 25.6.7Entourage, 7.0, 7.7, 23.2Field of Dreams, 9.10, 9.14Firm, The, 27.1First Knight, 21.13.2Gandhi, 1.1Gathering Storm, The, 16.1Gentlemen Prefer Blondes, 25.12 Ghostbusters, 24.2

Gigi, 1.1Gladiator, 1.2, 10.6Glenn Miller Story, The, 25.1AGold Rush, 8.16Gone Fishin’, 4.6Gone with the Wind, 8.0, 8.1Good Morning, Vietnam, 7A8.4.5Grapes of Wrath, The, 9.1Grease, 5.3Groundhog Day, 24.1, 24.8Guadalcanal Diary, 16.2Hamlet, 1.3Hannah Montana: The Movie, 9.1Harold and Maude, 25.6.1Help!, 9.2History of the World: Part I, 8.2, 14.6Hoosiers, 22.1, 22.7Hot Shots! Part Deux, 21.19Houseboat, 5.3, 14.1, 14.20How Green Was My Valley, 9.1How to Succeed in Business Without Really

Trying, 9.6Hunger Games: Catching Fire, The, 1.5If It’s Tuesday, This Must Be Belgium, 23.1Inconvenient Truth, An, 4.1Into The Wild, 26.1, 26.7Invictus, 14.6It Could Happen to You, 17.6It’s a Wonderful Life, 27.16James Bond Series, 18.1Jaws, 1.2, 4.6King Kong, 22.1, 22.7King Lear (1953), 14.6King Lear (1983), 14.6King Lear (1998), 14.6Law & Order, 19.5.6Lawrence of Arabia, 1.1, 27.7Leatherheads, 18.3.3Legally Blonde, 7.1, 7.7, 21.19Lion in Winter, 6.8.1Lord of the Flies, 14.14Love Actually, 19.7Loved One, The, 18.2March of the Penguins, 14.13Marty, 20.1, 20.5Miracle on 34th Street, 22.1, 22.7Moby Dick, 4.6Money Pit, The, 8.1Moneyball, 6.7.5Mr. Deeds, 11.5Mr. Smith Goes to Washington, 12.1Nightmare on Elm Street, A, 15.6North to Alaska, 8.16Patton, 1.1Pay It Forward, 22.7, 22.12Perfect Storm, The, 4.6Pirates of the Caribbean: The Curse of the

Black Pearl, 12.9Player, The, 5.6Pleasantville, 17.1,17.7Pocahontas, 10.13Prestige, The, 27.15Producers, The, 8.9, 16.8Raider’s of the Lost Ark, 6.7Rainmaker, The, 14 Appendix 1Right Stuff, The, 16.2River, The, 9.1Rocky, 1.1, 27.16

Rocky Horror Picture Show, The, 14.14Roman Holiday, 8.16Romeo + Juliet, 16.1Scent of a Woman, 8.10Schindler’s List, 1.1Scrooged, 18.3.3Seven Year Itch, 25.12Silence of the Lambs, 8.9, 14.1, 14.20Sleeper, 12.1, 12.12Some Enchanted Evening, 27.2.4Some Like It Hot, 3.1, 3.4, 14.15, 21.26, 25.12South Pacific, 27.2.4Spook Louder, 6.7.6Star Trek V: The Final Frontier, 4.1Star Wars, 27.16Star Wars: Episode VI – Return of the Jedi,

21.20Stealing Beauty, 23.1Stepford Wives, The, 18.1, 19.1,19.7Sting, The, 1.3, 20.5Stripes, 24.2Stuck on you, 7.2Sudden Impact, 13.8Superman, 26.10Swan Lake, 7A.2Sweet Charity, 22.1, 22.7Thin Red Line, The, 16.2Thirteen Days, 16.1Thomas Crown Affair, The (1968), 23.2 Thomas Crown Affair, The (1999), 23.2 Three Stooges, The, 15.11, 26.6Time Traveler’s Wife, The, 2.6Titanic, 23.1Tonight Show, The, 3.1Top Gun, 14.17Treasure of Sierra Madre, The, 8.16Troy, 6.1, 16.2, 16.11, 25.2Twilight Zone: The Movie, 27.4Under the Tuscan Sun, 23.1, 23.10Wall Street, 10.1, 15.1Wall Street: Money Never Sleeps, 10.1 West Side Story, 1.1Willy Wonka & the Chocolate Factory, 8.17,

18.3.6Wizard of Oz, The, 6.1, 6.3, 9.1Wolf of Wall Street, The, 1.5Yellow Submarine, 19.542, 1.5, 7A.4, 7A.142012, 8.112 Years a Slave, 1.513 Going on 30, 18.3.6