Estate divided: Tax Court rejects fractional ownership claim
Abstract: Does the mere execution of grant deeds transferring undivided interests in property create fractional interests? No, according to the U.S. Tax Court. This article looks at a case in which the decedent had executed a grant deed transferring undivided one-fifth interests in land to each of his five children as tenants-in-common. But, because he retained a life interest in the property by retaining control of it, the ownership wasn’t split until his death. This meant that the entire value of the property was includible in the gross estate.