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value of the remainder interest in question on the ground that
the known facts surrounding decedent's diagnosis and treatment
for esophageal cancer demonstrate that decedent's death was
imminent or predictable on March 5, 1986, thereby justifying a
departure from the actuarial tables (under which decedent's
actuarial life expectancy was 15 years).
In Estate of McLendon v. Commissioner, T.C. Memo. 1993-459,
66 TCM (CCH) 946, 963, 64 TCM (RIA) 2436, 2455 (slip op. at 51),
we decided that the property interests in question should be
valued as general partnership interests, as opposed to assignee
interests, on the ground that the private annuity agreement
amounted to “a device intended to permit Gordon to transfer his
partnership interests to the natural objects of his bounty for
less than adequate and full consideration.” In addition, we
sustained respondent's determination that petitioner erred in
relying on section 25.2512-5(f) (Table A), Gift Tax Regs., in
computing the value of the remainder interest that decedent
transferred pursuant to the private annuity agreement in light of
decedent's diminished life expectancy on the date that he entered
into the agreement. Estate of McLendon v. Commissioner, T.C.
Memo. 1993-459, 66 TCM (CCH) at 968, 64 TCM (RIA) at 2460 (slip
op. at 70).
Upon review of our Memorandum Opinion, the Court of Appeals
for the Fifth Circuit issued an unpublished opinion reversing in
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