Just How Much Is a Bequest to a Foundation Worth? Heirs’ Missteps Pare Estate’s Charitable Contribution Deduction
Author: Katherine E. David.
Source: Volume 15, Number 04, May/June 2016 , pp.3-5(3)
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Abstract:
A recent Tax Court case, Dieringer v. Comm’r, illustrates that actions taken before the distribution of assets to a private foundation can reduce the value of the estate’s charitable contribution deduction. In particular, regardless of the value of the property a decedent left to charity, the estate tax deduction is available only for the value that actually passes to charity. This article examines the mistakes made in the execution of the estate’s missteps that led to an IRC Sec. 6662(a) penalty in Dieringer of $824,943—and how they could have been avoided.Keywords: Dieringer v. Comm’r; IRC Sec. 4941
Affiliations:
1: Strasburger & Price, LLP.