- 14 -
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.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Last modified: May 25, 2011