Baine P. and Mildred C. Kerr - Page 3




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                                       OPINION                                        
               JACOBS, Judge:  This matter is before the Court on                     
          petitioners' motion for partial summary judgment, filed pursuant to         
          Rule 121.1  Petitioners contend that they are entitled to partial           
          summary judgment that section 2704(b) is not applicable in valuing          
          the limited partnership interests that they transferred to their            
          grantor retained annuity trusts and to their children during 1994           
          and 1995.2  For the reasons set forth below, we will grant                  
          petitioners' motion.                                                        
          Background3                                                                 
               Baine P. Kerr and Mildred C. Kerr were married in 1942 and             
          have four adult children, Baine P. Kerr, Jr., John Caldwell Kerr,           
          James Robinson Kerr, and Mary Kerr Winters (the Kerr children). The         



               1    All Rule references are to the Tax Court Rules of                 
          Practice and Procedure.  Unless otherwise indicated, all section            
          references are to the Internal Revenue Code, as amended.                    
               2    Petitioners also moved for partial summary judgment               
          that their interests in the grantor retained annuity trusts were            
          “qualified interests” within the meaning of sec. 2702(b).                   
          Respondent subsequently conceded the point, and we issued an                
          order granting so much of petitioners' motion for partial summary           
          judgment as pertained to that issue.                                        
               3    The following summary of the relevant facts is based on           
          the parties' stipulations with attached exhibits and other                  
          pertinent materials in the record.  They are stated solely for              
          the purpose of deciding the pending motion and are not findings             
          of fact for this case.  See Rule 1(a); Fed. R. Civ. P. 52(a).               








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