Estate May Not Claim Marital Deduction for Partnership Property Transfer

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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.

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