- 11 - discount is typically applied. * * * The value of an annuity * * * exists solely in the anticipated payments, and inability to prematurely liquidate those installments does not lessen the value of an enforceable right to $X annually for X number of years. As we concluded in Estate of Gribauskas v. Commissioner, 116 T.C. at 161, 163, when the asset to be valued is one for which the tables are generally employed, mere illiquidity and/or lack of marketability of the asset does not lead to, or create, an unreasonable result requiring an alternative valuation method. In Estate of Gribauskas we found that a fixed stream of lottery payments, subject to minimal risk of default, was a private annuity. Tabular valuation did not lead to an unrealistic and unreasonable result merely because the annuity, lacking a corpus from which to draw upon, was unmarketable. The estate now asserts arguments similar to those of the taxpayer in Estate of Gribauskas; however, the estate has not shown any significant fact that would distinguish Estate of Gribauskas. Moreover, in Estate of Gribauskas, after a review of the cases where departure was permitted, we opined that “those [cases] permitting departure have almost invariably * * * [with the exception of Estate of Shackleford v. United States, supra,] required a factual showing that renders unrealistic and unreasonable the return or mortality assumptions underlying the tables.” Id. at 161 (and the cases cited thereat).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011