Estate May Not Claim Marital Deduction for Partnership Property Transfer

For over 50 years, Bloomberg BNA’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...

Following an estate's motion for reconsideration of its previous memorandum opinion, the U.S. Tax Court finds the estate cannot claim a marital deduction with respect to $4.3 million in property transferred as gifts to a family limited partnership during the decedent's lifetime. Allowing a marital deduction for partnership interest would allow assets to leave the marital unit without incurring a transfer tax, the court said.