Estate of Emerson Winkler, Deceased, Thomas Winkler and Darrell S. Winkler, Co-Executors, et al., (1997)

Docket Number: 6510-95, 6523-95

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Estate of Emerson Winkler, Deceased, Thomas Winkler and Darrell S. Winkler, Co-Executors, et al., (1997)

T.C. Memo. 1997-4

UNITED STATES TAX COURT ESTATE OF EMERSON WINKLER, DECEASED, THOMAS WINKLER AND DARRELL S. WINKLER, CO-EXECUTORS, ET AL., Petitioners v.

COMMISSIONER OF INTERNAL REVENUE, Respondent Docket Nos. 6510-95, 6523-95, Filed January 2, 1997. 6524-95.

Robert Kopf, Jr., Jill Fisher, and R. Dell Zeigler, for petitioners.

Michael Bitner, for respondent.

MEMORANDUM FINDINGS OF FACT AND OPINION WHALEN, Judge: Respondent determined the following deficiencies in, and penalties on, petitioners' taxes:

Penalty Year Gift Tax Estate Tax Sec. 6662(a) Elizabeth Winkler 1989 $58,596 -- $23,438 Estate of Emerson Winkler -- 58,596 -- 23,438 Estate of Emerson Winkler -- -- $294,333

Unless stated otherwise, all section references are to the Internal Revenue Code as in effect during 1989 or at the time of the decedent's death.

Respondent determined a gift tax deficiency in the case of Mrs. Elizabeth Winkler based on a finding that Mrs. Winkler made taxable gifts in 1989 of one-half of the value of a winning lottery ticket. Respondent also determined a gift tax deficiency in the case of her deceased husband, Mr. Emerson Winkler, by reason of his consent to split the gifts made by Mrs. Winkler pursuant to section 2513(a). Due to the increase in Mr. Winkler's lifetime taxable gifts, respondent also determined a deficiency in estate tax in the case of the Estate of Emerson Winkler.

The primary issue for decision is whether Mrs. Winkler purchased a winning lottery ticket on her own behalf or on the behalf of a family partnership. If we find that Mrs. Winkler purchased the ticket on her own behalf, then we must also determine whether the Estate of Emerson Winkler is entitled to increase the marital deduction claimed for estate tax purposes by the amount of Mr. Winkler's interest in a family partnership on the ground that Mrs. Winkler's disclaimer of that interest was invalid.

FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts and attached exhibits are incorporated herein by this reference. At the time the instant petitions were filed, Mrs....

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