- 5 -
the reciprocal life estates for purposes of the section 2013
credit on the basis of actuarial tables promulgated under section
7520.
I. Contentions of the Parties
The estates contend that section 7520 makes use of actuarial
tables mandatory, subject only to narrow exceptions not
applicable here. Specifically, the estates maintain that
judicial decisions and revenue rulings sanctioning departure from
actuarial tables in cases of known simultaneous or clearly
imminent deaths are not controlling here because there exist no
facts to establish the circumstances surrounding the Harrisons’
demise. The spouses were only presumed dead after an absence of
more than 9 months. The estates therefore aver that the life
estates at issue were properly valued on the basis of
transitional rules set forth in section 20.7520-4(a), Estate Tax
Regs., which state that executors may rely on the formulas and
tables in Notice 89-24, 1989-1 C.B. 660, and Notice 89-60, 1989-1
C.B. 700, to value transferred interests if the valuation date is
after April 30, 1989, and before June 10, 1994.
Conversely, respondent asserts that the Harrisons’ life
estates may not be valued through application of actuarial
formulas and tables. Rather, it is respondent’s position that
this case presents a simultaneous death situation governed by
case law and revenue rulings declaring valueless interests
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011