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part and remanding the case to this Court. In particular, the
Court of Appeals reversed our decision that the property
interests transferred by decedent should be valued as partnership
interests after concluding that we failed to characterize the
annuity transaction as a “contrivance to avoid estate taxes” or a
“sham”. Estate of McLendon v. Commissioner, 77 F.3d 477 (5th
Cir. 1995), revg. in part and remanding without published opinion
T.C. Memo. 1993-459 (slip op. at 17-18). Further, the Court of
Appeals remanded the case to this Court with instructions to
explain our holding sustaining respondent's determination that
petitioner improperly relied upon the actuarial tables under
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. The Court of Appeals’
opinion states in pertinent part:
Although the Tax Court purported to compare
Gordon's health as of March, 1986 with that of parties
in other cases, e.g. in [Estate of Jennings v.
Commissioner, 10 T.C. 323 (1948) and Estate of Hoelzel
v. Commissioner, 28 T.C. 384, 389 (1957)], we are
unable to discern whether the Tax Court followed
Revenue Ruling 80-80, [1980-1 C.B. 194] or found reason
to depart from it. The Tax Court's opinion is both
ambiguous and ambivalent regarding the revenue ruling,
as it holds that Gordon had a life expectancy of one
year, a finding that would suggest to us under the
express language of the revenue ruling that death was
not clearly imminent. We must remand for the court to
clarify its conclusion with regard to the applicability
of Revenue Ruling 80-80 so that we will have a sounder
basis for appellate review. [Estate of McLendon v.
Commissioner, 77 F.3d at 477 (slip. op. at 24).]
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