Estate of Erickson v. Commissioner

Steve R. Akers (Bessemer Trust, Dallas, Texas) has written EricksonExtends §2036 to Using Partnership Funds to Pay Decedent’s Estate Taxesfor the RPPT, May 2007 issue.

Here is the introduction:

Estate of Erickson v. Commissioner, T.C. Memo 2007-107 is another §2036 victory for the IRS in a “terrible facts”case. The case is particularly interesting in that the retained enjoyment ofthe partnership was the use of partnership funds to pay estate taxes (albeit throughthe purchase of an estate asset and a redemption of part of the estate’sinterest). However, the case was surrounded with other facts that made readilyapparent that the only purpose of the partnership was to try to secure an estatetax discount.