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KPLP’s assets were contributed as follows:
Edna Austin Korby sons Living trust Total
38.26 58.46 1.28 2.00 100.00
The parties agree that if section 2036 applies to the assets
contributed to KPLP by Austin and Edna, 38.26 percent of KPLP’s
value should be included in Edna’s gross estate and 58.46 percent
of KPLP’s value should be included in Austin’s gross estate.8 In
calculating the values of the KPLP assets at Edna’s death, the
parties shall take into consideration their stipulation that the
value of Amoco stock at Edna’s death was $43.039 per share, not
$89.13 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 $143,000 at Edna’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
8This 38.26-percent portion of KPLP’s value is includable in
Edna’s gross estate in addition to the 2-percent KPLP general
partnership interest held by the living trust, which the estate
does not dispute is included in Edna’s gross estate under sec.
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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