Estate of Joseph L. Haskins, Deceased, Lloyd L. Edwards and Jayne C. Haskins, Executors v. United States

This appeal is from a District Court decision in favor of the Government in an action for refund of federal estate taxes. The action was instituted by taxpayer under 28 U.S.C. § 1346 (a) (1) (1964). The District Court’s Findings of Fact and Opinion are reported at 240 F.Supp. 492 (N.D.Cal.1965). Taxpayer properly invokes our jurisdiction under 28 U.S.C. § 1291 (1964).

At issue is the propriety of inclusion in the decedent’s gross estate of $185,560, the value of a trust created incident to a division, by agreement, of community property. In 1947, the decedent, Joseph L. Haskins, and his then wife, Mildred, separated after thirty-four years of marriage. On March 1, 1947, they entered into an agreement for the distribution of property accumulated .during the marriage and for the settlement of all claims made by each against the other. The value of the community property, in which each of the parties owned a vested community one-half interest, was declared by them to be $333,647 as of the date of the execution of agreement. The agreement became effective on January 1, 1948, and evidence was introduced from which it might be concluded that the fair market value of the community…