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valuing the property interests transferred and received by Cyril
was the hypothetical willing buyer and willing seller standard.
See Estate of Magnin v. Commissioner, T.C. Memo. 1996-25.
The estate appealed our decision. The Court of Appeals for
the Ninth Circuit declined to follow its previous holding in
United States v. Past, supra, that “adequate and full
consideration” must be given for the value of the entire property
interest transferred to the trust, not just the remainder
interest, because that case “did not elaborate upon the rule or
evaluate its merit.” Estate of Magnin v. Commissioner, 184 F.3d
at 1077. Instead, the Court of Appeals held that “‘adequate and
full consideration’ is measured against the actuarial value of
the remainder interest rather than the full fee-simple value of
the property interest transferred to the trust.” Id. at 1080;
see also Estate of Wheeler v. United States, 116 F.3d 749, 767
(5th Cir. 1997); Estate of D’Ambrosio v. Commissioner, 101 F.3d
309, 313 (3d Cir. 1996), revg. 105 T.C. 252 (1995).
The Court of Appeals also discussed our previously mentioned
footnote in which we said that even if the proper measure of full
consideration had been the remainder interest, the estate had not
shown that Cyril received adequate consideration for that
interest. See Estate of Magnin v. Commissioner, 184 F.3d at
1081. The Court of Appeals noted that we had discussed the
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