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(b) Amount Includible.--Subsection (a) shall apply
to only such part of the value of the annuity or other
payment receivable under such contract or agreement as
is proportionate to that part of the purchase price
therefor contributed by the decedent. For purposes of
this section, any contribution by the decedent’s
employer or former employer to the purchase price of
such contract or agreement * * * shall be considered to
be contributed by the decedent if made by reason of his
employment.
An interest included in the gross estate pursuant to one of
the above-referenced provisions must then be valued. As to this
endeavor, the general rule is set forth in section 20.2031-1(b),
Estate Tax Regs.:
The value of every item of property includible in a
decedent’s gross estate under sections 2031 through
2044 [now 2045 due to addition and renumbering] is its
fair market value at the time of the decedents’s death,
except that if the executor elects the alternate
valuation method under section 2032, it is the fair
market value thereof at the date, and with the
adjustments, prescribed in that section. The 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 to
sell and both having reasonable knowledge of relevant
facts. * * *
However, section 7520, enacted as part of the Technical and
Miscellaneous Revenue Act of 1988, Pub. L. 100-647, sec. 5031(a),
102 Stat. 3342, 3668, provides a specific rule for valuing
enumerated forms of property interests, as follows:
SEC. 7520. VALUATION TABLES.
(a) General Rule.--For purposes of this title, the
value of any annuity, any interest for life or a term
of years, or any remainder or reversionary interest
shall be determined--
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Last modified: May 25, 2011