Estate of Gladys J. Cook - Page 6

                                        - 6 -                                         
               The regulations promulgated under section 2031 generally               
          provide the methods by which property described in sections 2033            
          through 2045 is to be valued.  Secs. 20.2031-1 through 20.2031-9,           
          Estate Tax Regs.  The valuation of any property not specifically            
          described in sections 20.2031-2 through 20.2031-8, Estate Tax               
          Regs., is made in accordance with the general principles set                
          forth in section 20.2031-1, Estate Tax Regs.  See sec. 20.2031-9,           
          Estate Tax Regs.  Where the property is subject to valuation                
          using general principles, the value of property includable in the           
          gross estate is its fair market value.  Sec. 20.2031-1(b), Estate           
          Tax Regs.  A property’s fair market value is 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                
          sell, and both having reasonable knowledge of relevant facts.               
               Section 2033 provides that the value of a decedent’s gross             
          estate includes the value of all property to the extent of the              
          decedent’s interest at the time of his death.  Sec. 2033; Estate            
          of Mellinger v. Commissioner, 112 T.C. 26 (1999).  Decedent owned           
          a 50-percent interest in the partnership at the time of her                 
          death, the value of which must be included in her gross estate.             
          Sec. 2033.  On the valuation date, the partnership’s assets                 
          included the right to receive 19 annual lottery payments and                
          cash.  To establish the value of decedent’s interests in the                

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011