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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 required
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