- 15 - Commissioner, 135 F.3d 1017 (5th Cir. 1998), revg. and remanding T.C. Memo. 1996-307, and section 20.7520-4, Estate Tax Regs., to be misplaced. The decedent in Estate of McLendon v. Commissioner, supra at 1018-1020, after having been diagnosed with cancer, made a transfer of property in trust and received in return an annuity based on the actuarial tables for an individual of his age. He died approximately 6 months later, and the Commissioner determined that the transferred property was to be included in his estate under section 2036(a) as a transfer not for adequate and full consideration. See id. at 1020-1021. The Court of Appeals for the Fifth Circuit held that the decedent was entitled to follow Rev. Rul. 80-80, 1980-1 C.B. 194, and concluded, as a factual matter, that his death was not clearly imminent at the time of the transfer. See id. at 1023, 1025. Use of actuarial tables was accordingly deemed proper. See id. The estates quote the following language from Estate of McLendon v. Commissioner, supra at 1025, to support their reliance on the transitional rules of section 20.7520-4(a), Estate Tax Regs.: “Where the Commissioner has specifically approved a valuation methodology, like the actuarial tables, in his own revenue ruling, he will not be heard to fault a taxpayer for taking advantage of the tax minimization opportunities inherent therein.”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