- 10 -
tables. Rather, it is the estate’s position that the broader
willing-buyer, willing-seller standard should control, with
factors such as lack of marketability taken into account in
discounting the prize to present value.
In the alternative, the estate contends that even if the
lottery award is held includible in decedent’s gross estate as an
annuity under section 2039, deviation from the prescribed tables
is warranted in this case. The estate claims that the tables may
be disregarded when their use would produce an unreasonable
result and that, due to restrictions on the asset in question,
such a situation is present here.
Conversely, respondent asserts that decedent’s right to 18
fixed annual payments constitutes an annuity which must be valued
pursuant to section 7520. With respect to section 2039,
respondent maintains that the lottery installments satisfy all
elements for inclusion in the gross estate under subsection (a)
and that no grounds are provided in subsection (b) for limiting
such inclusion. However, regardless of the specific
applicability of section 2039, it is respondent’s position that
the LOTTO prize is an interest to which section 7520 applies.
Respondent avers that the statute cited for inclusion in the
gross estate is not dispositive of whether tabular valuation is
mandated. Rather, it is the nature of the payment stream at
issue that controls, and respondent contends that the periodic
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011