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"[T]he property to be valued for estate tax purposes is that
which the decedent actually transfers at his death rather than
the interest held by the decedent before death, or that held by
the legatee after death." Propstra v. United States, 680 F.2d
1248, 1250 (9th Cir. 1982); see also Ahmanson Found. v. United
States, 674 F.2d 761, 769 (9th Cir. 1981).
For purposes of determining value, the standard is an
objective test using hypothetical buyers and sellers in the
marketplace and is not a personalized one that envisions a
particular buyer and seller. Estate of Andrews v. Commissioner,
79 T.C. 938, 956 (1982); Kolom v. Commissioner, 71 T.C. 235, 244
(1978), affd. 644 F.2d 1282 (9th Cir. 1981). Respondent argues,
however, that, although the valuation standard utilizes a
hypothetical buyer, who could not, under the terms of the
partnership agreement, purchase a partnership interest, it does
not transform the nature of the interest that actually passed at
death from partnership interests to assignee interests.
Respondent's argument rests on the notion that the partnership
interests that were transferred to Mr. Prechel remained
partnership interests because he was "automatically" admitted as
a general partner by virtue of his already being a partner in
both partnerships. In addition, respondent argues that, because
the trusts continued to hold some of the partnership interests
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