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included in the decedent's gross estate pursuant to sections 2031
through 2044 is generally included at its fair market value, the
price at which the property would change hands between a willing
buyer and a willing seller, neither being under any compulsion to
buy or sell, and both having reasonable knowledge of the relevant
facts. Sec. 2031; United States v. Cartwright, 411 U.S. 546, 551
(1973); sec. 20.2031-1(b), Estate Tax Regs.
The partnership interests that were held by the revocable
trust are included in decedent's gross estate pursuant to section
2038, and the partnership interests that were held by the QTIP
trusts are included in decedent's gross estate pursuant to
section 2044. Respondent argues that, in valuing the partnership
interest for Federal estate tax purposes, the decedent should be
treated as the owner of property included in the estate pursuant
to section 2044 and that the respective partnership interests
held by the trusts should merge or be aggregated. Accordingly,
respondent concludes that decedent's estate should be taxed on an
84.1-percent limited partnership interest in PFLP, a 99.9-percent
general partnership interest in PFLP, and a 100-percent limited
partnership interest in ESNGLP, rather than on the separate
partnership interests owned by each trust.
We rejected respondent's aggregation argument in Estate of
Mellinger v. Commissioner, 112 T.C. 26 (1999), filed this date,
and we find no reason to reach a different conclusion in this
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