Estate of Semone Grossman, Richard M. Frome, Preliminary

CourtUnited States Tax Court
DecidedMay 27, 2021
Docket9892-18
StatusUnpublished

This text of Estate of Semone Grossman, Richard M. Frome, Preliminary (Estate of Semone Grossman, Richard M. Frome, Preliminary) is published on Counsel Stack Legal Research, covering United States Tax Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Estate of Semone Grossman, Richard M. Frome, Preliminary, (tax 2021).

Opinion

T.C. Memo. 2021-65

UNITED STATES TAX COURT

ESTATE OF SEMONE GROSSMAN, DECEASED, RICHARD M. FROME, PRELIMINARY EXECUTOR, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent

Docket No. 9892-18. Filed May 27, 2021.

Decedent H and W1, who were both Jewish, married in N.Y. in 1955. They separated in 1965, and H attempted to end the marriage by obtaining a unilateral divorce in Mexico. In 1967, H participated in a civil marriage ceremony with W2, who was not Jewish, in N.J.

By 1974, H’s relationship with W2 had ended. In that year, W1 sued H and W2 in N.Y., seeking a declaratory judgment that the Mexican divorce was null and void and that she (W1) was still H’s lawful wife. W1 prevailed in the suit, but did not reconcile or cohabit with H thereafter.

By 1986, H became engaged to W3. H and W3, who was also Jewish, decided to get married in the State of Israel. Before the wedding, H and W1 appeared before an orthodox rabbinical court in N.Y. to obtain a Jewish religious divorce. H and W3 presented evidence of the divorce to the Israeli authorities and were married in Israel in 1987.

Served 05/27/21 -2-

[*2] After their marriage in Israel, H and W3 returned to N.Y. and lived there as husband and wife for 27 years, until H’s death in 2014. They had two children, filed joint Federal income tax returns, and shared a home and finances. During this time, W1 also lived in N.Y., saw H and W3 socially, and never challenged their marriage. W1 filed Federal income tax returns as single and made no statutory claim against H’s estate after his death.

When H died in 2014, he left the bulk of his estate to W3, and the estate claimed a corresponding marital deduction under I.R.C. sec. 2056(a). R denied the deduction and argues in a motion for partial summary judgment that H’s religious divorce from W1 was invalid under N.Y. law. Relying on N.Y. law, R argues that W1, rather than W3, was H’s surviving spouse when he died.

H’s estate disagrees. In its competing motion for partial summary judgment, the estate maintains that N.Y. law is irrelevant to the dispute and that certain IRS revenue rulings and Federal caselaw require the Court to look only to Israeli law to determine W3’s status as surviving spouse. The estate further contends that, even if we accept R’s premise that N.Y. law provides the rule of decision, the estate prevails because N.Y. courts would respect H’s marriage to W3 under their longstanding place of celebration test.

Held: For purposes of deciding the motions, we can assume (as R contends) that N.Y. law applies to determine W3’s marital status at the time of H’s death;

Held, further, W3’s Israeli marriage to H was valid under the place of celebration test that the N.Y. Court of Appeals has applied consistently for 140 years;

Held, further, W3 is H’s surviving spouse within the meaning of I.R.C. sec. 2056(a). -3-

[*3] Megan E. Wernke, Christopher S. Rizek, and Beth Shapiro Kaufman, for

petitioner.

Shawna A. Early, Michael J. De Matos, and Marc L. Caine, for respondent.

MEMORANDUM OPINION

TORO, Judge: Before the Court are competing motions for partial summary

judgment. They present the question of whether Ziona Grossman is the “surviving

spouse” of decedent Semone Grossman for purposes of the estate tax marital

deduction provided by section 2056(a).1 Semone and Ziona, both Jewish and

residents of New York, celebrated their marriage in the State of Israel in 1987

pursuant to that country’s laws after Semone obtained a religious divorce from his

first wife Hilda, who was also Jewish and a New York resident. After celebrating

their marriage, Semone and Ziona returned to New York, had two daughters, and

lived together as husband and wife for 27 years until Semone’s death in 2014, all

without challenge from Hilda, who was familiar with the New York rules for

1 Unless otherwise noted, all section references are to the Internal Revenue Code in effect at all relevant times, and all Rule references are to the Tax Court Rules of Practice and Procedure. We round all monetary amounts to the nearest dollar. -4-

[*4] challenging an invalid marriage. Hilda, in turn, reported in her tax returns that

she was single and, after Semone’s death, made no statutory claim for an elective

share as a surviving spouse against Semone’s considerable estate.

Although the parties most directly interested in the status of Semone and

Ziona’s marriage appear to have been satisfied with the validity of that marriage,

and although no New York court has cast any doubts on that score, in his motion

for partial summary judgment the Commissioner of Internal Revenue asks us to

hold that Semone and Ziona’s Israeli marriage was a nullity and that, for Federal

estate tax purposes, Hilda, not Ziona, was Semone’s “surviving spouse.” For the

reasons set out below, we decline the Commissioner’s invitation.

In its competing motion for partial summary judgment, the Estate of Semone

Grossman (the “Estate”) contends that, based on the record before us, Ziona is

Semone’s surviving spouse under section 2056(a). As we explain below, we agree

with the Estate.

Background

The following facts are derived from the pleadings, the parties’ motion

papers, and the declarations and exhibits attached thereto. These facts are stated

solely for the purpose of ruling on the motions and not as findings of fact in this

case. See Ramey v. Commissioner, 156 T.C. ___, ___ (slip op. at 6) (Jan. 14, -5-

[*5] 2021). The Preliminary Executor of the Estate, Richard M. Frome, resided in

New York when the petition was filed.

A. Personal History

Semone Grossman was born in Germany in 1930 and spent most of

his childhood in Poland. He and his family were Jewish, and many of his family

members, including his parents, perished in the Holocaust. Semone was interned

in a series of concentration camps during the war, but ultimately survived and

emigrated to the United States in or around 1949. He settled in New York City and

got into the business of owning and operating parking garages.

Semone’s first wife, Hilda Matrick Grossman, was also Jewish. Semone and

Hilda were married in New York City in 1955 and subsequently had two children

together.

Semone and Hilda ceased living together in the mid-1960s. In 1965, they

entered into a separation agreement that set out their respective property rights and

required Semone to make regular payments to Hilda. From that point on, Semone

and Hilda never reconciled or cohabited.

By 1967, Semone had commenced a new relationship with Katia Equale,

who was not Jewish. Semone traveled to Mexico to obtain a divorce from Hilda

and, although Hilda did not appear or otherwise participate in the proceeding, the -6-

[*6] divorce was granted by the Second Civil Court of the Bravos District, State of

Chihuahua, Republic of Mexico, on or about August 24, 1967. After Semone

obtained the divorce, Semone and Katia participated in a civil marriage ceremony

in New Jersey and subsequently had two children.

By 1974, Semone and Katia’s relationship had ended. In that year, Hilda

filed suit in the Supreme Court of the State of New York against Semone and Katia

seeking a declaratory judgment that the Mexican divorce was null and void and

that she (Hilda) remained Semone’s lawful wife. After a trial held in 1976, the

court ultimately found in Hilda’s favor and decided the following:

1.

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