- 12 -
value of the lottery installment payments as of the alternate
valuation date will be deemed to be the $2,603,661.02 claimed in
the estate tax return.
III. Analysis
A. Relevance of Section 2039
As a threshold matter, this case presents a preliminary
question regarding the relationship among sections 2033, 2039,
and 7520. Specifically, is finding that an interest fails to
meet the criteria for inclusion in the gross estate as an annuity
under section 2039, and is so included only under section 2033,
determinative of whether the interest is an annuity within the
meaning of section 7520? We answer this inquiry in the negative
for the reasons detailed below.
The purpose of section 2039, by its terms, is to effect
inclusion in the gross estate of annuity or payment rights
meeting certain enumerated criteria. At the same time,
regulations promulgated under the statute indicate that section
2039 does not provide the exclusive definition of interests which
may be considered an annuity for purposes of the Internal Revenue
Code. Section 20.2039-1(a), Estate Tax Regs., recites the
following: “The fact that an annuity or other payment is not
includible in a decedent’s gross estate under section 2039(a) and
(b) does not mean that it is not includible under some other
section of part III of subchapter A of chapter 11 [comprising
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011