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section 7520 of the Internal Revenue Code”, Notice 89-24, 1989-1
C.B. 660, during the period between the enactment of section 7520
and the promulgation of final regulations and tables.
III. Case Law
The existing case law as of April 1, 1994, although
involving valuation dates prior to section 7520’s enactment,
specifically dealt with the issue of valuing interests
transferred in simultaneous death situations for purposes of the
section 2013 credit. See Estate of Carter v. United States, 921
F.2d 63 (5th Cir. 1991); Estate of Lion v. Commissioner, 438 F.2d
56 (4th Cir. 1971), affg. 52 T.C. 601 (1969); Estate of Marks v.
Commissioner, 94 T.C. 720 (1990); Old Kent Bank & Trust Co. v.
United States, 292 F. Supp. 48 (W.D. Mich. 1968), revd. on other
grounds 430 F.2d 392 (6th Cir. 1970).
As early as 1968, a U.S. District Court had ruled in Old
Kent Bank & Trust Co. v. United States, supra at 53-55, that a
life estate had no value for tax credit purposes where, despite a
testamentary provision creating a presumption of survival, the
decedents had apparently died together in a plane crash. This
Court then reached the same conclusion in Estate of Lion v.
Commissioner, 52 T.C. at 606-607, and the Court of Appeals for
the Fourth Circuit affirmed, Estate of Lion v. Commissioner, 438
F.2d at 61-62. Each of these decisions reiterated that value for
tax purposes is based upon the amount that a hypothetical willing
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