Estate of Austin Korby - Page 24

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          Austin’s death, the parties shall take into consideration their             
          stipulation that the value of Amoco stock at Austin’s death was             
          $55.125 per share, not $85.50 per share as stated in the notice             
          of deficiency.                                                              
          II. The 1995 and 1998 Annuities                                             
               The estate argues that respondent incorrectly included the             
          1995 annuity, valued at $146,713.59 at Austin’s death, in the               
          KPLP assets.  The estate does not object to respondent’s                    
          valuation of the annuity.  The annuity entitled Austin to                   
          payments after the annuity date for a 10-year period as long as             
          he was living.  If Austin died during the 10-year period, the               
          payments would continue to his beneficiaries.  Austin’s sons were           
          named as irrevocable beneficiaries, which also entitled them to a           
          death benefit if Austin died before the annuity date.                       
               Section 2039(a) provides that the gross estate must include            
          the value of an annuity receivable by a beneficiary by reason of            
          surviving a decedent under a contract or agreement                          
               if, under such contract or agreement, an annuity or                    
               other payment was payable to the decedent, or the                      
               decedent possessed the right to receive such annuity or                
               payment, either alone or in conjunction with another                   
               for his life or for any other period not ascertainable                 
               without reference to his death or for any period which                 
               does not in fact end before his death.                                 

          2036(a) as living trust property. In addition, the calculation of           
          the portion includable in each gross estate takes into account              
          that the 1.28-percent interest contributed by the Korby sons is             
          not included in either Austin’s or Edna’s gross estate.                     

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Last modified: May 25, 2011