Estate of Margot Stewart v. Commissioner: Second Circuit Vacates Tax Court Decision Holding Entire Property Interest Includable in Estate

In Estate of Margot Stewart v. Commissioner, the Second Circuit vacated the U.S. Tax Court decision that held a gift by a decedent was includable in her taxable estate because the decedent has retained the possession or enjoyment of the property during her life. The Second Circuit held that the Tax Court erred in finding the terms of the implied agreement provided the decedent would retain enjoyment of the entire 49% share and that the entire property should be included in the estate.

Posted by Wesley J. Bailey, Senior Associate Editor, Wealth Strategies Journal.