When the result of undue influence is an inter vivos transfer
or gift, however, the courts have failed to clearly describe the various factors that tend to prove (or refute) an undue influence case.
Subsection 73(4): Inter vivos transfer
of family farm corporations and partnership.
The question about making an inter vivos transfer
could be considered as an additional proxy for wealth or that altruism or exchange motives exist.
A donor cannot allocate GST exemption to an inter vivos transfer
(a transfer the donor makes during his lifetime) if the property would be included in his or her spouse's gross estate (other than under IRC section 2035) if the donor died immediately after the transfer.
The Tax Court explained that this ignored the premise of the QTIP regime, under which the surviving spouse is treated as receiving the entire QTIP from his or her spouse and then transferring it either at death or in an inter vivos transfer
Attorneys often allege undue influence to challenge the validity of a decedent's will, trust, or inter vivos transfer
The Ninth Circuit, affirming the Tax Court, has ruled that the full fair market value of residential property must be included in the decedent's gross estate, finding that the decedent retained income and economic enjoyment from the property and that the inter vivos transfer
of the property was not a bona fide sale for adequate and full consideration under Sec.
2036(a)(1) returns an inter vivos transfer
to a decedent's gross estate if there is an express or implied agreement at the time of transfer that the transferor will retain lifetime possession or enjoyment of, or right to income from, the transferred property; see Regs.
2523(f) provides a similar provision for an inter vivos transfer
2035(b), the amount used to pay the gift tax on an inter vivos transfer
will not be subject to transfer tax, if the donor survives the transfer by three years.
The Tax Court refused to allow the discount, concluding that the sole purpose of the inter vivos transfer
was to reduce estate tax and that the transaction lacked economic substance.
of Kohlsaut,(16) the decedent had made an inter vivos transfer
of a commercial building to an irrevocable trust, and granted 18 beneficiaries (16 contingent) unrestricted rights to demand immediate distributions of trust property.