Estate of Rose D' Ambrosio, Deceased, Vita D'Ambrosio, Executrix - Page 5

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          determined, and reflected in her notice of deficiency, that                 
          $1,757,922 of stock was includable in Decedent's gross estate for           
          Federal estate tax purposes.  This amount equals the fair market            
          value of 470 shares of Vaparo preferred stock ($2,350,000), less            
          the annuity payments received by Decedent ($592,078).  Respondent           
          has since conceded that the maximum amount includable in                    
          Decedent's gross estate with respect to the preferred stock is              
          its $2,350,000 value, less the $1,324,014 value of the annuity.             
               We are faced in this case with a Federal estate planning               
          technique intended to remove the value of property from                     
          Decedent's gross estate.  We must decide whether the test of                
          adequate and full consideration under section 2036(a) takes into            
          account the value of the entire property, i.e., the fee interest,           
          or merely the value of the remainder interest as determined under           
          the valuation tables prescribed by respondent.  See e.g., sec.              
          20.2031-7, Estate Tax Regs.  Numerous articles have been written            
          on this issue, and the legal commentators debate its resolution.            
          Compare, e.g., Dodge, 50-5th T.M., Transfers with Retained                  
          Interests and Powers A-67 (1992) with 2 Casner, Estate Planning,            
          sec. 6.15.2, at 149 n.6 (5th ed. 1988 & Supp. 1993).                        
               Chapter 11 of the Internal Revenue Code imposes a Federal              
          estate tax on the transfer of the taxable estate of a decedent              
          who is a citizen or resident of the United States.  Secs. 2001              

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