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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.
8(...continued)
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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