Estate of Kurz v. Commissioner
United States Court of Appeals for the Seventh Circuit
68 F.3d 1027 (1995)
Relevant factsFree
Kurz held an unlimited lifetime withdrawal right over her marital trust and could additionally withdraw up to 5 percent of a separate family trust, but only after fully exhausting the marital trust's assets; substantial amounts remained in both trusts at her death, and the Tax Court included both the entire marital trust and the 5 percent family-trust withdrawal right in her gross estate, a ruling the Commissioner (defendant) appealed.
IssueFree
Whether, if a beneficiary may withdraw principal from a trust, but only after exhausting the assets of another trust, both trusts are included in the beneficiary's gross estate.