While living, Schemer promised Spouse that if Spouse would be kind and loving, S

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 estate deductible under Section 2053 of IRC? b.) What is the result if Schemer's promise was made in a 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 4(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)

Assume that claim upheld by state law – it is deductible by 2053(a) - this is a claim against the estate, founded on a promissory agreement (therefore limited to amount that is supported by A&F consideration).S gave no consideration so nothing is deductible. A payment might qualify under the section 2056.

b)

2043(b) (1) – doesn’t apply b/c (b) (1) applies to a relinquishment or promised relinquishment. This is not relinquishment. What possibly could apply? Rev. Rul. 60-160– it’s a claim against the estate deductible under 2053(a)(3).Also look at (c)(1)(A) – it is supported by consideration which is her rt to support (that’s what she’s giving up) Giving uprt to support will be treated as consideration

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