While living, Schemer promised Spouse that if Spouse would be kind and loving, S
ID: 2445921 • Letter: W
Question
While living, Schemer promised Spouse that if Spouse would be kind and loving, Schemer would leave Spouse $400,000 of Schemer’s $1 million estate; but Schemer didn’t.
A) Is Spouse’s claim against Schemer’s estate deductible under Section 2053?
B) What is the result if Schemer’s promise was made in separation agreement with Spouse, and was a promise binding on Schemer’s estate and becoming effective upon Schemer’s death, to pay Spouse $10,000 a year until Spouse died or remarried for a relinquishment of Spouse’s rights to support?
C) What is the result in questions (b), above, if Spouse remarried on the day of Schemer’s funeral, a few days after Schemer’s death? Would that affect the amount of the deduction?
Explanation / Answer
A) Is Spouse’s claim against Schemer’s estate deductible under Section 2053?
Here we are assuming that claim upheld by state law – it is qualify for deduction under section 2053(a) – it is a claim against the estate (a)(3).– this is a claim against the estate, which is founded on a promissory agreement). Schemer gave no consideration so nothing is deducting. Payments will qualify under section 2056.
B) What is the result if Schemer’s promise was made in separation agreement with Spouse, and was a promise binding on Schemer’s estate and becoming effective upon Schemer’s death, to pay Spouse $10,000 a year until Spouse died or remarried for a relinquishment of Spouse’s rights to support?
Here section 2043(b)(1) does not apply because it is (b)(1) applies to a relinquishment or promised relinquishment. This is not a case of relinquishment. it’s a claim against the estate deduction under 2053(a)(3). We have also look to (c)(1)(A) – it is supported by consideration which is her Giving up right to support will be treated as consideration.
C) What is the result in questions (b), above, if Spouse remarried on the day of Schemer’s funeral, a few days after Schemer’s death? Would that affect the amount of the deduction?
If spouse remarried on the day of schemer’s funeral, a few day after Schemer’s death will not entitle to separation agreement and not eligible to get $10,000 a year.
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