Estate of Gladys J. Cook - Page 14

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          lottery payments that was owned directly by decedent.  In both              
          instances, the asset must be given a value in order to determine            
          the tax consequences to the estate.  Sec. 20.2031-3, Estate Tax             
          Regs.  The rate of return and the risk of return are the same,              
          and the term of years during which the payments are made ends on            
          a date certain.  To depart from tabular valuation in this case              
          simply because the annuity was owned by a partnership would be              
          contrary to our decision in Estate of Gribauskas v. Commissioner,           
          supra, as the facts here are otherwise indistinguishable.                   
               For the foregoing reasons, we hold that the fair market                
          value of the partnership’s right to receive future lottery                  
          payments should be determined in accord with the actuarial tables           
          in section 20.2031-7, Estate Tax Regs.  We have considered all              
          other arguments advanced by the parties, and to the extent that             
          we have not addressed these arguments, we consider them                     
          irrelevant, moot, or without merit.                                         
               To reflect the foregoing and concessions of the parties,               

                                             Decision will be entered                 
                                        under Rule 155.                               

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Last modified: May 25, 2011