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Section 2039(b), however, provides that section 2039(a) applies
only to the part of the value of the annuity “proportionate to
that part of the purchase price therefor contributed by the
decedent.” The estate has shown that the annuity was purchased
in 1995 using $140,000 of KPLP’s funds. Because the purchase
price of the annuity was contributed entirely by KPLP and none
was paid by Austin, the value of the annuity is not includable in
Austin’s gross estate under section 2039.
However, the fact that an amount is not includable in a
decedent’s gross estate under section 2039 does not preclude its
inclusion in the gross estate under some other section of the
estate tax laws. See Estate of Kleemeier v. Commissioner, 58
T.C. 241, 252 (1972) (citing section 20.2039-1(a), Estate Tax
Regs.). The 1995 annuity was purchased by KPLP and was included
as one of its assets when Austin died. Its value is therefore
includable in Austin’s gross estate under section 2036 to the
same extent the values of the other KPLP assets are includable.
In calculating KPLP’s total value, the value of the 1995 annuity,
agreed upon by the parties as $146,713.59 at Austin’s death,
should be included. The portions includable in Austin’s gross
estate (the 58.46-percent interest he contributed and the 2-
percent general partnership interest owned by the living trust)
shall then be calculated from the total value.
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