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the same conclusion here because the facts of this case and of
Addis are indistinguishable.
As in Addis, NHF gave petitioner receipts for his payments
which stated that NHF had not provided any goods or services to
petitioner in return for those payments. Petitioner expected NHF
to use his payments of $93,000 to pay NHF’s portion of the
premiums on the life insurance policies in 1997 and 1998 and thus
expected his family trusts to receive a substantial part of the
death benefits under the policies. NHF failed to make a good
faith estimate of the value of those benefits as required by
section 170(f)(8)(B)(iii).
Petitioner’s contention that his expectation that NHF would
pay the premiums on the life insurance policies was not
consideration under section 170(f)(8) fails to take into account
the definition of consideration in section 1.170A-13(f)(6),
Income Tax Regs. A donee organization provides goods or services
in consideration for a taxpayer’s payment if, at the time the
taxpayer makes the payment to the donee organization, the
taxpayer receives or expects to receive goods or services in
exchange for that payment. Id.
Petitioner’s daughters, rather than petitioner, were the
trustees of the family trusts. In contrast, in Addis, the
taxpayers were the trustees. Like the taxpayers in Addis,
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