- 25 -
OPINION
Section 2001(a) imposes an estate tax on the taxable estate of
every decedent who is a citizen or resident of the United States.
A decedent’s taxable estate is determined by determining the value
of the decedent’s gross estate and by deducting therefrom those
deductions provided for in sections 2053 through 2056. Sec. 2051.
The gross estate of a decedent is determined by including the value
(at the date of the decedent’s death) of the decedent’s interest in
all property, real or personal, tangible or intangible, wherever
situated. Secs. 2031(a), 2033.
In this case, one of the issues presented is determining (for
purposes of determining the value of decedent’s gross estate) the
value of an interest which decedent possessed in a malpractice
claim against Eckell, Sparks as of the date of her death. The
parties have fashioned a formula for computing the value of that
interest. They have agreed that the starting point in determining
the value of that interest is a post mortem settlement, made almost
9 years after decedent’s death. While normally we would not attach
such importance, if any, to an event or transaction occurring
almost 9 years after decedent’s death in determining a date-of-
death value for an asset owned by a decedent, in this case we do so
because of the parties’ stipulation.
Essentially, the parties have agreed that the $750,000
settlement represented the gross value as of the date of settlement
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NextLast modified: May 25, 2011