Tips From the Pros: Lewis Shouldn’t be a Loser
McDougall v. Commissioner 1 involved the premature termination of a qualified terminable interest property (QTIP) trust by agreement among the remainder beneficiaries and the income beneficiary. Unresolved in McDougall was how properly to value those gifts. Lewis v. Comm’r2 took up that question.
Facts Common to Both Cases
Bruce McDougall survived his wife, Clotilde, who died on Dec. 13, 2011. The value of her gross estate was $59.76 million. Clotilde’s will established a residuary trust of which Bruce became the initial sole trustee. Bruce, as personal representative, timely filed a Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return within which he effectively made an election under Internal Revenue Code Section 2…
