- 12 - the consideration received by Cyril was limited to approximately $30,500, based on the report and testimony of an expert appraiser, Stephen A. Stewart (Mr. Stewart). The estate argued that the consideration received by Cyril was $58,146, based on the report and testimony of its expert appraiser, Bryan H. Browning (Mr. Browning). Mr. Stewart assigned a value of $244,000 to Cyril’s entire stock interest, $123,000 of which was allocated to Cyril’s remainder interest. Mr. Browning assigned a value of $83,600 to Cyril’s entire stock interest, $42,000 of which was allocated to Cyril’s remainder interest. Prior Court Proceedings The main issue for decision in this case was whether Cyril’s 1971 transfers in trust with retained life estates were includable in his gross estate, or whether they were excluded from the estate because they were bona fide sales for “adequate and full consideration” within the meaning of section 2036(a). In our original opinion, we upheld respondent’s deficiency determination. Although we found that the 1951 Agreement contained an element of bargained-for consideration, we noted that this did not automatically establish adequate and full consideration within the meaning of section 2036(a). See Estate of Magnin v. Commissioner, T.C. Memo. 1996-25; United States v. Past, 347 F.2d 7, 12 n.2 (9th Cir. 1965). We held that the proper calculation of the interest transferred by Cyril requiredPage: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011