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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.
Discussion
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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