IRS Issues Ruling on GST Tax and Charitable DeductionIRS Issues Ruling on GST Tax and Charitable Deduction

Prior to September 1985, a decedent executed a will directing that on her death, her property be distributed to her surviving spouse, children, grandchildren and charity.  After she executed her will, the decedent was declared incompetent.  She never regained competency up to and including the date of her death.  The decedent’s estate timely filed an estate tax return and attached a copy of the decedent’s judgment of incompetency.

The decedent’s beneficiaries (including the charitable beneficiaries) didn’t agree with the amounts of distributions under the will; the estate thus petitioned the court for construction and reformation to determine the amount each beneficiary was to receive.  The court approved a settlement among the beneficiar...