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Mr. Bigelow reported that the value of decedent’s general
partnership interest was $19,912.50, computed by taking 1 percent
of the value of the Padaro Lane property and applying a 35-
percent control premium.
OPINION
The value of an interest in property is included in a
decedent’s gross estate if: (1) The decedent made an inter vivos
transfer of the property;2 (2) the transfer was for less than
adequate and full consideration; and (3) the decedent retained
the possession or enjoyment of, or the right to the income from,
the transferred property. Sec. 2036(a)(1).3 However, a
decedent’s gross estate does not include property transferred
2 The estate does not contend that the transfer of the
Padaro Lane property by decedent’s trust to Spindrift was not an
inter vivos transfer by decedent for purposes of sec. 2036(a),
and we conclude that it was.
3Sec. 2036(a)(1) provides in pertinent part:
SEC. 2036. TRANSFERS WITH RETAINED LIFE ESTATE.
(a) General Rule.--The value of the gross estate
shall include the value of all property to the extent
of any interest therein of which the decedent has at
any time made a transfer (except in case of a bona fide
sale for an adequate and full consideration in money or
money’s worth), by trust or otherwise, under which he
has retained for his life or for any period not
ascertainable without reference to his death or for any
period which does not in fact end before his death–-
(1) the possession or enjoyment of, or the
right to the income from, the property, * * *
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