DePaoli v IRS

76 AFTR 2d 95-5881
Court of Appeals, 10th Circuit

Summary

In general, an estate tax is due upon the death of a taxpayer (here a husband). That tax may be deferred until the death of the spouse but only if the estate passes to her.

Here are the IRS argued the estate 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 mother instead, thus qualifying  for the deferral.