DePaoli v. IRS
76 AFTR 2d 95-5881
Court of Appeals, 10th Circuit
Summary of the Case
In general, an estate tax is due upon the death of the first spouse — in this case a husband. That tax may be deferred until the death of the spouse, but only if the estate passes to her.
Here, the IRS argued the estate had passed to the children, and thus the estate tax was due. However, the 10th Circuit Court ruled to the contrary, that the children’s disclaimer was valid and caused the estate to pass to the wife instead, thus meeting the requirement for the deferral.