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for her remainder interest in the stock. According to the
executrix, Decedent's gross estate does not include the value of
any Vaparo preferred stock because, during her life, she sold the
remainder interest in the stock for adequate and full
consideration. The executrix argues that Gradow v. United
States, 11 Cl. Ct. 808 (1987), affd. 897 F.2d 516 (Fed. Cir.
1990), the holding of which is contrary to her position, was
wrongly decided by both the United States Claims Court and the
Court of Appeals for the Federal Circuit.
According to the executrix' interpretation, section 2036(a)
permits a taxpayer to remove the entire value of property from
his or her gross estate by selling the remainder interest in the
property for an amount equal to the value of the remainder
interest. We do not agree. See Estate of Gregory v.
Commissioner, 39 T.C. 1012 (1963). We do not believe that the
bona fide sale exception of section 2036(a) allows Decedent's
estate to avoid the Federal estate tax on the value of the
preferred stock in which Decedent retained an income interest
until her death. We find the executrix' reliance on a private
letter ruling and technical advice memoranda misplaced. Sec.
6110(b)(1), (j)(3) (private letter rulings and technical advice
memoranda are not precedential); Knapp v. Commissioner, 90 T.C.
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