Estate of Austin Korby - Page 2

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          Korby (the estate).1  After concessions, there are two issues               
          remaining for decision.                                                     
               (1)  Is the value of the assets Austin and Edna Korby                  
          (Austin and Edna or the Korbys) transferred to the Korby                    
          Properties, A Limited Partnership (KPLP), includable in the gross           
          estate under sections 20362 and 2038?  We hold that 58.46 percent           
          of KPLP’s value is includable under section 2036(a)(1).                     
               (2)  Is the value of an annuity purchased in 1995 includable           
          in the gross estate?  We hold that the value of the 1995 annuity            
          is so includable.                                                           
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found.               
          The stipulation of facts, supplemental stipulation of facts,                
          second supplemental stipulation of facts, and attached exhibits             
          are incorporated herein by this reference.  At the time the                 
          petition was filed, the mailing address for the estate was in               
          Fergus Falls, Minnesota, and Austin Dennis Korby, Jr. (Dennis),             
          Austin and Edna’s son and the trustee of the Austin and Edna                

               1Respondent also determined a deficiency with respect to the           
          estate of Austin Korby’s wife, Edna Korby, who died 5 months                
          before Austin.  The issues concerning Edna’s estate are addressed           
          in a separate Memorandum Findings of Fact and Opinion of this               
               2Unless otherwise indicated, all section references are to             
          the Internal Revenue Code in effect for the date of the                     
          decedent’s death, and all Rule references are to the Tax Court              
          Rules of Practice and Procedure.                                            

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