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OPINION
Section 2031(a) provides that the value of the gross
estate of a decedent is determined by including the value
at the time of the decedent's death of all property, real
or personal, tangible or intangible, wherever situated.
Section 2041 provides generally that a decedent's gross
estate shall include the value of all property over which
the decedent has a general power of appointment at the time
of his or her death. See sec. 2041(a)(2).
As mentioned above, at the time of her death, the
decedent possessed a general power of appointment over a
25.235-percent limited partnership interest in Hill House.
In this opinion, we sometimes refer to this interest as the
subject limited partnership interest. Thus, the decedent’s
gross estate includes the value of this interest. The sole
issue for decision in this case is the fair market value of
the subject limited partnership interest.
Fair market value is defined for Federal estate and
gift tax purposes as the price at which the property would
change hands between a willing buyer and a willing seller,
neither being under any compulsion to buy or to sell and
both having reasonable knowledge of all the relevant facts.
See sec. 20.2031-1(b), Estate Tax Regs.; United States v.
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Last modified: May 25, 2011