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ESTATE AND GIFT TAX CONSIDERATIONSwhether the “interest in issue” reaches the charity pursuant to correctly interpretedand applied state law. 104 The charity must have recognizable, enforceablerights, under state law, to at least some portion of the estate. 105 For example,when a charity was named as a beneficiary in a decedent’s will, but not in any ofsix subsequent wills and a codicil, the IRS concluded that there was little likelihoodthat the first will would be admitted to probate. Thus, the estate was notentitled to any charitable deduction for the payment. 106A charitable deduction is allowed for these types of split interests in propertywhen the interest (remainder interest) transferred is:• A charitable remainder annuity trust• A charitable remainder unitrust• A pooled income fund• A guaranteed annuity• An annual fixed percentage distribution of fair market value of property 107Contributions of split interests in copyrighted tangible works of art are notdenied a charitable contribution deduction when the art work is conveyed separatelyfrom the copyright in such work. 108 The split interests of the art work andits copyright are treated as separate properties. The contribution must be madeto a qualified organization that will use the property in a manner related to theorganization’s function. A qualified organization is a charitable organizationother than a private foundation.An estate tax charitable contribution deduction is available in respect of anytransfer of a qualified real property interest, 109 as long as the interest meets certainrequirements. 110 Essentially, this deduction is available for irrevocable transfersof easements in real property. 111Marital Estate Tax Deduction. An unlimited marital deduction is allowed to adecedent for the value of any property transferred to his or her survivingspouse. 112 Transfers of terminable interests in property generally do not qualify104 See, e.g., Terre Haute First Nat’l Bank v. United States, 91-1 U.S.T.C. 60,070 (S.D. Ind. 1991).105 Reg. § 20.2056(c)-2(d)(2).106 Tech. Adv. Mem. 200306002.107 IRC § 2055(e)(2). See, e.g., Johnson Estate v. United States, 941 F.2d 1318 (5th Cir. 1991); Zabel v. UnitedStates, 1998 WL 84385 (D. Neb. 1998) (split-interest trusts that were created partially to benefit charities wereruled not to be one of the qualifying types).The IRS amended the estate tax regulations in 2003 to eliminate the requirement that the charitable interestcommence no later than a noncharitable interest that is in the form of a guaranteed annuity or unitrust interestwould commence. T.D. 9068. This change followed the Tax Court’s decision in Boeshore Estate v. Commissioner,78 T.C. 523 (1982).108 IRC § 2055(e)(4).109 This term is defined in IRC § 170(h)(2)(C). See § 9.7(a).110 These are the requirements of IRC § 170(h) (see § 9.7) without regard to IRC § 170(h)(4)(A) (see 9.7(c)).111 IRC § 2055(f). A court denied an estate an income tax charitable deduction (IRC § 642(c)) for the value ofstock it transferred to a charitable organization in satisfaction of a bequest and for which the estate successfullyclaimed an estate tax charitable deduction. Crestar Bank v. IRS, 99-1 U.S.T.C. 50, 545 (E.D. Va. 1999). Ingeneral, see Raby & Raby, Calculating Estate Tax Charitable Deductions, 39 Exempt Orgs. Tax Rev. (no. 1)47 (Jan. 2003).112 IRC § 2056(a). 240