Taxation of estates & trusts

State law theories of liability were not proved, the Tax Court holds.

Sumner Redstone’s 1972 transfer to children’s trusts, unlike his brother’s, was voluntary and nonbusiness-related.

The 1972 transfer was in the ordinary course of business and for full and adequate consideration, the Tax Court holds.

A net gift calculation is accepted under the willing buyer/seller test.

The highest gift or estate tax rate applies after the gift tax annual exclusion amount; the marital deduction and QTIPs are among the possible exclusions.

The remainder interest must be calculated assuming annual distribution amounts equal to the greater of 5% or the fixed percentage stated in the trust instrument.

No short-form option is provided; regulatory time extension is allowed only for estates valued below the filing threshold.

Carryover basis election for estates electing out of estate tax requires special adjustments.

Annual exclusions were available for gifts to a family trust that qualified as a Crummey trust.