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(1995), affd. without published opinion 108 F.3d 1393 (Fed. Cir.
1997), the court described the interest at issue in that case, a
stream of payments to be received by the decedent’s estate under
a lawsuit settlement agreement, as follows:
This settlement agreement also provided for the
funding of an annuity “for the sole use and benefit of
WILLIAM ARRINGTON.” Specifically, the annuity would be
for
the sum of Two Thousand Twenty Seven and 86/100
($2,027.86) Dollars per month beginning on January
7, 1990 for the remainder of WILLIAM ARRINGTON’s
life, guaranteed for a minimum of three hundred
and sixty (360) months. In the event of WILLIAM
ARRINGTON’s death prior to the expiration of three
hundred and sixty (360) months, the remaining
monthly payments in the guaranteed period shall
continue to be paid as they fall due on a monthly
basis to the estate of WILLIAM ARRINGTON and not
in a lump sum.
The court then went on to hold the installments includible in the
decedent’s gross estate under section 2033 on the grounds that
the decedent was “the beneficial owner of the annuity”. Id. at
147-148, 150. Arrington v. United States, supra, thus
illustrates that an annuity classification and a section 2033
inclusion are not mutually exclusive concepts.
Consequently, based on the foregoing authorities, we are
satisfied that the particular section under which an interest
might be included in the gross estate is not dispositive of the
interest’s status as an annuity which potentially must be valued
under section 7520. Since the estate has conceded, and we
concur, that the subject lottery payments are includible under
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