Eighth Circuit Memorandum Opinion by Judge Michael J. Melloy, "Estate of Helen Christiansen et al. v. Commissioner"

Michael J. Melloy, a judge serving on the United States Court of Appeals for the Eighth Circuit, determined that a partial disclaimer was valid as to an amount that passed to a foundation named as a contingent beneficiary in decedent's will.  The Court also held that decedent's estate was entitled to a charitable deduction for this amount.  The Court rejected the Commissioner's arguments that 1) an IRS challenge serves as a disqualifying event; and 2) the law must be interpreted to maximize the incentive to audit. 

See Tax Analysts, "IRS Challenge Not a Disqualifying Event, Eighth Circuit Affirms," 2009 Tax Notes 218-18 (November 13, 2009)

Posted by Jessica DiLorenzo, Associate Editor, Wealth Strategies Journal.