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In Rev. Rul. 81-20, 1981-1 C.B. 471, respondent ruled that
an estate may deduct under section 2055 a decedent’s bequest of
the residue of his estate to a charity under certain conditions.
Petitioners contend that, under Rev. Rul. 81-20, 1991-1 C.B. 471,
we must compute the marital deduction for Mr. DiSanto’s estate as
a residuary interest because Mr. DiSanto gave Mrs. DiSanto a
residuary interest in his estate, not stock. We disagree that
Rev. Rul. 82-20, 1991-1 C.B. 471, applies because it does not
involve a marital deduction.
Petitioners contend that we must base the marital deduction
on the value of Mr. DiSanto’s controlling interest in MD&F stock.
We disagree. An estate may deduct "an amount equal to the value
of * * * property which passes or has passed from the decedent to
his surviving spouse". Sec. 2056(a). The value of the marital
deduction for a devised interest in stock of a closely held
corporation equals the value of the interest that passes to the
surviving spouse. See sec. 2056(b)(4); sec. 20.2056(b)-4(a),
Estate Tax Regs.; Estate of Chenoweth v. Commissioner, 88 T.C.
1577, 1588-1589 (1987). Thus, the marital deduction for Mr.
DiSanto's estate is based on the value of the interest that
passed from Mr. DiSanto's estate to Mrs. DiSanto.
Mrs. DiSanto's disclaimer reduced the value of her interest
in Mr. DiSanto's estate, and reduced the amount of the marital
deduction for Mr. DiSanto's estate. See sec. 2518(a). We have
decided that the fair market value of each share of MD&F stock
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