Overview
Todd Welty called it encouraging that the Fifth Circuit limited a donee’s transferee liability for gift taxes plus interest under Code Section 6324, but said a circuit court split on the issue makes it “possible that the government will petition the Supreme Court to challenge the donee’s liability being capped at the value of the gift.” Bobbi Bierhals added that “in a world where executors are skittish about making distributions until they receive an estate tax closing letter, this decision offers further reason for them to be concerned” about liability if they believe a claim may be asserted.
