Estate of Gordon B. McLendon, Deceased, Gordon R. McLendon, Jr., Independent Executor - Page 7

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               For purposes of the discussion that follows, it is important           
          to recognize that the parties to this case disagree as to the               
          proper standard to apply in determining whether a departure from            
          the actuarial tables is warranted.1  In particular, respondent              
          relies on Miami Beach First Natl. Bank v. United States, 443 F.2d           
          116 (5th Cir. 1971), and Estate of Fabric v. Commissioner, 83               
          T.C. 932 (1984), for the proposition that it is proper to depart            
          from the actuarial tables where death is either “imminent or                
          predictable”.  On the other hand, petitioner relies on Rev. Rul.            
          80-80, 1980-1 C.B. 194, in support of its position that the                 
          controlling standard is whether death is “clearly imminent”.                
               Rev. Rul. 80-80, 1980-1 C.B. 194, 195, states in pertinent             
               In view of recent case law, the resulting                              
               principle is as follows: the current actuarial tables                  
               in the regulations shall be applied if valuation of an                 
               individual's life interest is required for purposes of                 
               the federal estate or gift taxes unless the individual                 
               is known to have been afflicted, at the time of                        
               transfer, with an incurable physical condition that is                 
               in such an advanced stage that death is clearly                        
               imminent.  Death is not clearly imminent if there is a                 
               reasonable possibility of survival for more than a very                

               1As stated in our earlier Memorandum Opinion:                          
               The crux of the dispute centers on whether Gordon's                    
               death was sufficiently certain as of March 5, 1986, as                 
               to justify a deviation from the actuarial tables.  At a                
               more fundamental level, the parties disagree with                      
               respect to the specific legal standard to apply in                     
               resolving this issue. [Estate of McLendon v.                           
               Commissioner, T.C. Memo. 1993-459, 66 TCM (CCH) at 964,                
               64 TCM (RIA) at 2456 (slip op. at 57).]                                

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