William A. and Gayle T. Cook, Donors - Page 2




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               the remainder value is to be calculated by deducting                   
               the actuarially determined value of a single-life                      
               annuity.                                                               
                    Held:  Because the spousal interests in each GRAT                 
               are not fixed and ascertainable at the inception of the                
               GRAT and are therefore contingent, and because the                     
               retained interests in each GRAT may extend beyond the                  
               shorter of a term of years or the period ending upon                   
               the death of the grantor, the retained interests in the                
               GRAT’s are to be valued as single-life annuities.  See                 
               secs. 25.2702-3(d)(3) and 25.2702-2(a)(5), Gift Tax                    
               Regs.                                                                  

               George N. Harris, Jr., and Juan D. Keller, for petitioners.            
               Stewart Todd Hittinger, for respondent.                                
                                       OPINION                                        
               NIMS, Judge:  This matter is before the Court on the                   
          parties’ cross-motions for partial summary judgment, filed                  
          pursuant to Rule 121.  The parties seek a summary adjudication              
          regarding the same matter; i.e., the proper application of                  
          section 2702 to four grantor retained annuity trusts (GRAT’s).              
          There is no genuine issue of material fact to preclude a decision           
          on such matter.  We therefore proceed to decide the legal issues            
          that the parties’ motions present.                                          
               Unless otherwise indicated, all section references are to              
          sections of the Internal Revenue Code, as amended, and all Rule             
          references are to the Tax Court Rules of Practice and Procedure.            











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