Audrey J. Walton - Page 22

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          both the form and the effect are consistent with the statute.  We           
          further observe that respondent’s attempts to equate the estate’s           
          rights here with other contingent, post-death interests are                 
          premised on the bifurcation of the estate’s interest from that of           
          petitioner.  Yet, given the historical unity between an                     
          individual and his or her estate, we believe such separation is             
          unwarranted where the trust is drafted in the form of a specified           
          interest retained by the grantor, with the estate designated only           
          as the alternate payee of that precise interest.  This is the               
          result that would obtain if the governing instrument were simply            
          silent as to the disposition of the annuity in the event of the             
          grantor’s death during the trust term.  Additionally, any other             
          construction would effectively eliminate the qualified term-of-             
          years annuity, a result not contemplated by Congress.                       
               Moreover, we note in this connection that the Commissioner             
          has defined noncontingent for purposes of determining a qualified           
          remainder interest as follows:  “an interest is non-contingent              
          only if it is payable to the beneficiary or the beneficiary’s               
          estate in all events.”  Sec. 25.2702-3(f)(1)(iii), Gift Tax Regs.           
          We are satisfied that this principle is equally applicable in the           
          circumstances at bar.  For similar reasons, we decline                      
          respondent’s invitation to treat term annuities payable to a                
          grantor or the grantor’s estate as having two separate “holders”            
          for purposes of the regulatory requirement of section 25.2702-              

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