When Sommers are Winters: Do Blanks Denote Revocability?
4 Pages Posted: 25 Mar 2013
Date Written: March 25, 2013
In Sommers, ruling on both parties’ motions for partial summary judgment, the Tax Court dealt with claims of issue preclusion and collateral estoppel, equitable apportionment, the completion of gifts of limited liability company interests, and retained powers that would cause estate tax inclusion. Two aspects of Sommers held particular interest for me. The first is that the parties appear to be arguing their opponent’s conventional position. The second is that the court grappled with whether the blanks left in the gift documents were immaterial to gift completion; however, the court did not address whether the decedent’s completed gifts qualified for the annual exclusion or whether their value was unascertainable at the time of the gifts for any donee to obtain immediate use or possession of the transferred property.
Keywords: equitable apportionment, LLC, gift completion, defined value clause, issue preclusion, collateral estoppel, gift tax, estate tax, annual exclusion
JEL Classification: K34, H2, H10, H20, H22, H23, H24, H29
Suggested Citation: Suggested Citation