- 13 - Section 2039(b) limits the inclusion in the gross estate of the value of certain annuities to “only such part of the value of the annuity * * * as is proportionate to that part of the purchase price therefor contributed by the decedent.” Accordingly, the estate argued, since the decedent had provided only $1 towards the purchase price of the annuity represented by the lottery payments, which was an infinitesimal percentage of the purchase price contributed by the other purchasers of tickets in the same lottery, the portion of the annuity includible in the gross estate should be zero. The District Court rejected this argument, concluding that no portion of the annuity qualified for exclusion under section 2039(b) because the interest in the lottery payments “represents the accumulated wealth of the decedent.” Estate of Shackleford v. United States, 82 AFTR 2d at 98-5542, 98-2 USTC par. 60320 at 86,530. Consequently, the entire annuity was includible in the gross estate. Petitioner here reasons that, since the District Court in Estate of Shackleford rejected the argument that a $1 lottery ticket constituted only “part of the purchase price” (within the meaning of section 2039(b)) of the annuity resulting from the lottery win, and instead required that the entire annuity be included in the gross estate, it follows that the decedent’s $1 payment for the lottery ticket constituted the entire purchase price for the annuity. Thus, petitioner reasons, if the $1 pricePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011