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because the aggregate ownership in decedent's estate represents a
controlling interest in FOH, the shares should be valued at a
premium rather than at a discount.
Section 2044 was added to the Code in conjunction with
section 2056(b)(7) in 1981. Economic Recovery Tax Act of 1981,
Pub. L. 97-34, sec. 403(d), 95 Stat. 172, 302. Under section
2056(b)(7), the decedent is entitled to a marital deduction for
transfers of QTIP property to the surviving spouse at the
decedent's death. The surviving spouse has a lifetime interest
in the QTIP property, and, upon the death of the surviving
spouse, the property passes to beneficiaries designated by the
decedent. Accordingly, the first spouse to die can postpone
Federal estate tax that would otherwise be due on the QTIP
property while also retaining control over the ultimate
disposition of it. Sec. 2056(b)(7). Inclusion in the estate of
the second spouse to die, however, is the quid pro quo for
allowing the marital deduction for the estate of the first spouse
to die.
The purpose of section 2044 is to provide for the taxation
of QTIP property upon the death of the second spouse. That
section provides, in pertinent part, that "The value of the
[surviving spouse's] gross estate shall include the value of
property * * * [for which a deduction was allowed with respect to
the transfer of such property to the surviving spouse under
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