Kite: IRS Wins QTIP Battle But Loses Annuity War

Kerry A. Ryan

Saint Louis University School of Law

December 9, 2013

Tax Notes, Vol. 141, No. 10, 2013

In Kite, the Tax Court held that a 10-year deferred annuity constituted adequate and full consideration for a transfer of family partnership interests, even though the transferor died before receiving any payments. The court also held that the liquidation of a qualified terminable interest property trust and subsequent sale of its assets constituted a disposition of the qualifying income interest for life, resulting in a deemed transfer of the entire trust under section 2519. Ryan discusses those holdings and two more issues that were not raised in the Tax Court proceeding but are clearly implicated by the Kite facts.

Number of Pages in PDF File: 6

Keywords: estate tax, gift tax, annuity, deferred annuity, QTIP, Kite, marital deduction, 1014, income tax, basis

JEL Classification: H2,K34

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Date posted: December 12, 2013  

Suggested Citation

Ryan, Kerry A., Kite: IRS Wins QTIP Battle But Loses Annuity War (December 9, 2013). Tax Notes, Vol. 141, No. 10, 2013. Available at SSRN: http://ssrn.com/abstract=2365846

Contact Information

Kerry A. Ryan (Contact Author)
Saint Louis University School of Law ( email )
100 N. Tucker Blvd.
St. Louis, MO 63108
United States
3149777237 (Phone)
3149773332 (Fax)
HOME PAGE: http://law.slu.edu/

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