We all know the benefits of the revocable lifetime trust as a tool for avoiding probate and its hurdles, delays and unending formalities. One need only title all one’s worldly goods into oneself as trustee, designate the chosen objects of one’s bounty as co-beneficiaries and one’s chosen few as successor trustees, and all one’s estate problems die with one.

If IRS is pursuing one as one departs this vale of tears, one’s successor trustees have a trip to probate court in their short-term future.

So Ch J Michael B. (“Iron Mike”) Thornton teaches Patricia Doepke. Don’t look for a Tax Court case with Pat’s name in the caption, because there isn’t any. Pat is apparently the successor trustee of the late Jennie Dudowicz, whose estate you will find in the caption of Ch J Iron Mike’s order, Docket No. 7480-14S, filed 7/1/14.

Here’s the story: “The petition filed to commence this case was ratified by Patricia Doepke as the purported executrix of the estate of decedent. By Order…, the Court directed Patricia Doepke to file a Response to that Order and attach thereto (1) a copy of petitioner’s death certificate, and (2) letters of administration or letters testamentary appointing her (or someone else) the executor, personal representative, or fiduciary for the estate of the decedent. Patricia Doepke filed a Response. Attached to that Response was a copy of petitioner’s death certificate and three documents purportedly showing Patricia Doepke as trustee of a revocable trust. None of the documents provided show that Patricia Doepke is authorized to represent the estate of the decedent in this proceeding.” Order, at p. 1.

Now we remember Jane Gudie. She starred, post-mortem, in my blogpost “The Case of the Reluctant Executor”, 12/1/11. Her co-star, the reluctant executor Mary Helen Nordberg, having actual or constructive possession of the late Jane’s worldlys, was her executor, like it or not; so she couldn’t bail out of the petition she signed.

But that case involved estate tax, and the IRC provision that locked in reluctant Mary Helen  is Section 2203.

Now I can’t tell from Ch J Iron Mike’s order what tax is involved here, but if it’s not estate tax, Pat gets no help from reluctant Mary Helen’s case, whatever assets of the late Jennie she may hold.

So Pat, having avoided probate, also avoids Tax Court. No jurisdiction.

Takeaway- Remember, successor trustees. If there’s a Tax Court case in this estate, there’s a trip to probate court in your immediate future.