Document Type
Article
Publication Date
7-19-2010
Abstract
In Morgens, the court ruled in favor of the government that section 2035(b) applied to the gift taxes paid by the qualified terminable interest property (QTIP) trust beneficiaries to gross up the widow’s estate by that amount. Because the surviving (or donee) spouse must be taxed on the underlying property over which she has no ownership rights, Congress enacted section 2207A to allow the second spouse to recover from the beneficiaries of the property the transfer taxes relating to her gift or estate inclusion. However, the court held that section 2207A did not shift the gift tax liability to those beneficiaries to exempt the widow’s estate from the application of section 2035(b).
Recommended Citation
Morgens: More QTIP Mischief, 128 Tax Notes 329 (July 19, 2010)
Included in
Estates and Trusts Commons, Taxation-Federal Commons, Taxation-Federal Estate and Gift Commons, Tax Law Commons