Estate of Virginia C. Andrews v. United States

Summary

The court considered whether the name of deceased author Virginia C. Andrews was an asset of her estate and, if so, its value for federal estate tax purposes. Following a bench trial, the court evaluated the commercial value of Andrews's name in connection with posthumously ghostwritten novels published under her name and reviewed the IRS's valuation methodology. The excerpt does not include the court's ultimate disposition or full valuation analysis.

Holdings

1. Andrews's name was an intangible asset of the Estate and was includible in the gross estate for federal estate tax purposes.
2. The fair market value of Andrews's name on December 19, 1986, was $703,500, not the $1,244,910.84 value determined by the IRS.
3. The court could not review the IRS's exercise of discretion under 26 U.S.C. § 6404(e)(1) concerning abatement of interest.

Questions Presented

1. Whether Virginia C. Andrews's name constituted property of the Estate includible in the gross estate for federal estate tax purposes.
2. What was the fair market value of Andrews's name as of her date of death under the willing-buyer-and-willing-seller standard.
3. Whether the court could review the IRS's discretionary decision regarding abatement of interest under 26 U.S.C. § 6404(e)(1).

Disposition

other