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Respondent also determined a deficiency of $281,038
in the Estate of Emerson Winkler's estate tax. Respondent
reached this determination by increasing the value of
Mr. Winkler's lifetime taxable gifts by $757,007, and by
making adjustments to the marital deduction that are not
disputed. Respondent did not recognize the Estate's
protective QTIP election, and did not increase the marital
deduction for any portion of the residuary trust.
OPINION
Respondent determined that Mrs. Winkler purchased the
value of the winning Lotto ticket on her own behalf and
made a gift of a 10-percent interest in the ticket to each
of her five children. As mentioned above, respondent
asserts that the aggregate value of these gifts, totaling
50 percent of the value of the winning ticket, is
$1,514,014.35.
Petitioners argue that Mrs. Winkler purchased the
winning ticket on behalf of a pre-existing family partner-
ship. Petitioners contend that although the written E & E
Family Partnership agreement was not executed until after
the winning numbers were announced, an oral partnership
agreement existed prior to the time Mrs. Winkler purchased
the ticket. Thus, petitioners argue that each member of
the Winkler family was entitled to receive a portion of the
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