Estate of Rose D' Ambrosio, Deceased, Vita D'Ambrosio, Executrix - Page 11

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          had to be measured against the total value of the property that             
          she contributed to the trust, and not only against the value of             
          the remainder interest in the property.  Given that the decedent            
          transferred $243,989 in property to the trust in return for a               
          life estate worth approximately $143,346, the Court of Appeals              
          held that the decedent did not receive adequate and full                    
          consideration under section 2036(a).  Id. at 13-14; accord                  
          Parker v. United States, 75 AFTR 2d 2509, 95-1 USTC par. 60199              
          (N.D. Ga. 1995); Pittman v. United States, 878 F. Supp. 833                 
          (E.D.N.C. 1994).                                                            
               The Court of Appeals for the Tenth Circuit used analogous              
          reasoning in United States v. Allen, 293 F.2d 916 (10th Cir.                
          1961).  In the Allen case, the decedent set up an inter vivos,              
          irrevocable trust in which she retained 60 percent of the income            
          for life, the other 40 percent passing to her two children who              
          were also the beneficiaries of the remainder interest.  Advised             
          that her retention of the life estate would cause the                       
          attributable part of corpus (valued at approximately $900,000) to           
          be included in her gross estate for Federal estate tax purposes,            
          the decedent sold her life interest to her son for $140,000,                
          which was slightly greater than the $135,000 actuarial value of             
          the interest.  The Commissioner determined that 60 percent of the           
          corpus, less the $140,000 purchase price, was includable in the             
          decedent's gross estate.  The executors disagreed.  According to            

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