Estate of Gladys J. Cook - Page 11

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               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).                         

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