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being entered into by decedent, Greg, Janet, Kimberly, and Lori
on August 29, 1989. The agreement further states that all of the
parties thereto agreed that the fair market value of decedent's
land was $1,865,500.
Decedent signed the annuity agreement on December 23, 1988,
with her signature to the document being acknowledged before a
notary public on that same date. Her grandchildren's respective
signatures to the annuity agreement are stated to have been
acknowledged by them to Mr. Shadle, acting as a notary public, on
August 29, 1989.
Mr. Schulte had performed similar work in connection with
the creation and establishment of private annuities by two other
clients. During his engagement by decedent, however, Mr. Schulte
was not aware of the recent enactment of section 7520, whose
provisions concerning the valuation of private annuities would be
effective for transactions occurring after April 30, 1989.
Although Mr. Schulte subscribed to and received a weekly Federal
income tax service, he did not subscribe to a Federal estate and
gift tax service.
The annuity agreement provided that decedent would transfer
to the grandchildren all of her interest in the four parcels by
warranty deed and that decedent would have no further interest in
the land after the August 29, 1989, date of the annuity agreement
and decedent's delivery of the warranty deed to the
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