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Estate tax deduction may be reduced by subsequent events

Estate tax deduction may be reduced by subsequent events

Estate tax deduction may be reduced by subsequent events

An estate tax deduction for the value of stock passed to a charity may be modified by subsequent events, the Ninth Circuit Court of Appeals has affirmed. Post-death “manipulation” of the value of the stock so that the amount actually received by the charity is substantially below the value of the stock bequeathed at the donor’s death justifies a reduction in the estate tax deduction to the amount received by the charity. The issue arose in the estate of Victoria Dieringer who died in 2009. She and her husband had built a closely held corporation that manages commercial and residential real estate as well as a fast food restaurant. After her husband died, Victoria and two of her sons were...

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