Thomas Burdick, Estate of Perrin v. Burdick v. Commissioner Internal Revenue Service

The estate of Perrin V.' Burdick (“Taxpayer”) appeals the tax' court’s denial of its $60,000 charitable deduction. Taxpayer challenges the tax court’s finding that it terminated the nondeductible split-interest charitable bequest (“split-interest”) solely to gain a charitable, deduction. Taxpayer also argues that when it terminated the split-interest, the split-interest rules no longer applied. We affirm.

BACKGROUND

Perrin V. Burdick (“decedent”) died testate. His holographic will was duly probated in California. Thomas Andrew Burdick (“Andrew”), decedent's brother, was appointed executor. According to the will, the bulk of decedent’s estate was to be placed in trust with the trust’s income paid to Andrew. Upon Andrew’s death, the trust is to be distributed in equal shares to decedent’s nephew, Thomas Vaughn Bur-dick, and to the First Church of Christ, Scientist (“Charity”). Because Thomas Vaughn Burdick, a non-charitable beneficiary, and Charity, a charitable beneficiary, have successive interests in the trust’s remainder, the trust is a split-interest under 26 U.S.C. § 2055 (e)(2) of the Internal Revenue Code (“IRC”).

• Taxpayer took a charitable deduction for the Charity’s…