Estate of Ruth J. Casey, Deceased, First Interstate Bank of Nevada, Special Administrator - Page 10

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          decedent did not have control over the asset.  However,                     
          respondent emphasizes that the property was in a liquidating                
          trust and not held for investment or as an operating asset in a             
          business setting, and, accordingly, the typical reasons for                 
          applying a control discount do not exist in this case.                      
          Respondent also emphasizes that the trust document prohibited any           
          business operation and its sole purpose was to liquidate the                
          trust assets.  See Estate of McMullen v. Commissioner, T.C. Memo.           
          1988-500.                                                                   
               Petitioner relies heavily on Propstra v. United States,                
          supra, in which a husband and wife owned several parcels of                 
          realty as community property.  In that case the Government argued           
          that the taxpayer was required to show that the deceased spouse’s           
          community property interest would likely be sold apart from the             
          other undivided interest.  The Court of Appeals for the Ninth               
          Circuit held that “unity of ownership” principles did not apply             
          to property valuations for estate tax purposes.  Propstra v.                
          United States, supra at 1251.                                               
               Respondent argues that this case is factually outside the              
          Court of Appeals’ holding in Propstra because decedent had given            
          her interest and all other beneficiaries had given theirs to the            
          liquidating trustee for the express purpose of selling the                  
          property.  We agree.  The beneficiaries, by relinquishing their             
          interests in the property and giving the trustee control and                
          authority to sell, including the authority to decide the selling            




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