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then enumerates a series of limitations on the statute’s
application. The list concludes with “Any other sections of the
Internal Revenue Code to the extent provided by the Internal
Revenue Service in revenue rulings or revenue procedures.” Sec.
20.7520-3(a)(9), Estate Tax Regs. Paragraph (a) is effective as
of May 1, 1989. See sec. 20.7520-3(c), Estate Tax Regs.
At the time paragraph (a) was issued, Rev. Rul. 80-80, 1980-
1 C.B. 194, set forth the standard applied by the Commissioner
for determining whether departure from actuarial tables was
warranted. The test therein provided:
In view of recent case law, the resulting
principle is as follows: the current actuarial tables
in the regulations shall be applied if valuation of an
individual’s life interest is required for purposes of
the federal estate or gift taxes unless the individual
is known to have been afflicted, at the time of
transfer, with an incurable physical condition that is
in such an advanced stage that death is clearly
imminent. Death is not clearly imminent if there is a
reasonable possibility of survival for more than a very
brief period. * * * [Id.]
Rev. Rul. 80-80, 1980-1 C.B. 194, was subsequently obsoleted
by Rev. Rul. 96-3, 1996-1 C.B. 348, in conjunction with the
promulgation of section 20.7520-3(b), Estate Tax Regs. This
paragraph (b) is effective with respect to estates of decedents
dying after December 13, 1995. See sec. 20.7520-3(c), Estate Tax
Regs. Among other things, paragraph (b) explicitly precludes use
of actuarial tables prescribed under section 7520 in instances
of: (1) Terminal illness, where there is at least a 50-percent
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