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Ninth Circuit affirms transferred residential property must be included in gross estate.
- Article from:
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The Tax Adviser
- Article date:
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January 1, 2008
- Author:
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;
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Copyright informationCOPYRIGHT 2008 American Institute of CPA's. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Ninth Circuit, affirming the Tax Court, has ruled that the full fair market value of residential property must be included in the decedent's gross estate, finding that the decedent retained income and economic enjoyment from the property and that the inter vivos transfer of the property was not a bona fide sale for adequate and full consideration under Sec. 2036(a) (Estate of Bigelow, 9th Cir., 9/14/2007, aff'g TC Memo 2005-65).
Facts
Virginia A. Bigelow (Bigelow) gave each of her three children a 1/175th undivided interest in her residence (the Sand Point Road property) in 1990 or 1991. In 1991, she executed a trust agreement and deed, transferring her remaining ...
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