- 18 -
including the charitable and marital deductions." S. Rept.
97-592, at 20 (1982), 1983-1 C.B. 475, 483. In addition, the
legislative history to the amendment does not suggest that
Congress intended that section 2044 property be treated as being
owned by the second spouse to die for purposes of aggregation and
does not provide for aggregation with other fractional interests
in the same property included in the decedent's estate under
section 2033. Neither section 2044 nor the legislative history
indicates that decedent should be treated as the owner of QTIP
property for this purpose.
In Estate of Bonner v. United States, 84 F.3d at 198, the
decedent died owning fractional shares in several pieces of real
property with the remaining ownership interests being held in a
QTIP trust established by his wife at her death. As provided in
section 2044, the interest that was held by the QTIP trust was
included in the decedent's estate. The fractional shares that
were owned outright by the decedent were also included in the
decedent's estate pursuant to section 2033. The executor of the
decedent's estate, however, valued each interest separately with
a 45-percent discount. The Government argued that the fractional
interests in the real property should be aggregated for valuation
purposes.
The Court of Appeals, relying on its prior holding in Estate
of Bright v. United States, 658 F.2d at 1001, concluded that the
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