- 16 - the fair market value of decedent’s interest in an asset on the date of death. Here decedent owned an incomplete residence (57- percent completed). The parties’ disputes, however, focus on the intangible aspects connected with the possible completion of the residence. Respondent does not argue that cost should be the measure of the value of the partially or fully completed asset. On this point also see Securities Mortg. Co. v. Commissioner, 58 T.C. 667, 675 (1972), where cost was not used to value incomplete realty. Respondent’s determination is that decedent had a right or was entitled to the completion of the residence so that the completed value should have been included in the gross estate. Accordingly, respondent’s position is that decedent had a right to the insurance reimbursement, and the value of that right was includable as an asset in her estate. Under the agreement between Chubb and decedent, Chubb had unilaterally agreed to pay for restoration of the residence, but only if restoration was pursued and completed. To the extent that Chubb had an obligation to decedent at the time of her death, it could only be to reimburse for any portion of the residence that had been restored. In addition, Chubb’s exposure under the agreement was to be reduced if the cost of construction was less than estimated.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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