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Burns valued the lottery payments at $5,762,7913 and decedent’s
interests in the partnership at $2,406,413. The experts used
various methods, excluding the annuity tables, to establish the
value of the lottery payments to the partnership.
The parties have stipulated that if the final judicial
determination requires application of the annuity tables, then
the value of the estate’s interests in the partnership will be
$2,908,605. If the final judicial determination is that the
application of the annuity tables is not required, then the value
of the estate’s interests in the partnership will be $2,237,140.
Discussion
Section 2001 imposes a tax on the taxable estate of every
decedent who is a citizen or resident of the United States. See
sec. 2001; Estate of Kyle v. Commissioner, 94 T.C. 829, 838
(1990). The term “taxable estate” is defined in section 2051 as
the value of the “gross estate” less applicable deductions. Sec.
2051; Estate of Kyle v. Commissioner, supra at 838. Under
section 2031(a), the gross estate includes the value at the time
of death of “all property, real or personal, tangible or
intangible” to the extent provided in sections 2033 through 2045.
Estate of Young v. Commissioner, 110 T.C. 297, 306 (1998); sec.
20.2031-1(a), Estate Tax Regs.
3 Respondent’s expert valued the lottery payments without
the use of the valuation tables in the event that departure from
the valuation tables is warranted.
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