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existed only in a fiduciary capacity and therefore does not limit
or weaken decedent’s interest in the annuities.
To recapitulate, the Court is satisfied that decedent should
be characterized as the sole beneficial owner of the annuities,
such that the value thereof in includable in her gross estate
under section 2033. Consequently, we need not reach the question
of whether the annuities would likewise be properly included
under section 2039. Nonetheless, our affirmative answer on the
question of inclusion does necessitate examination of the issue
of valuation, to which we now turn.
III. Valuation of the Annuities
A. General Rules
With respect to an interest included in the gross estate
pursuant to section 2033 and/or following provisions, the general
rule governing valuation is set forth in section 20.2031-1(b),
Estate Tax Regs.:
The value of every item of property includible in a
decedent’s gross estate under sections 2031 through
2044 [now 2045 due to addition and renumbering] is its
fair market value at the time of the decedent’s death,
except that if the executor elects the alternate
valuation method under section 2032, it is the fair
market value thereof at the date, and with the
adjustments, prescribed in that section. The fair
market value is the price at which the property would
change hands between a willing buyer and a willing
seller, neither being under any compulsion to buy or to
sell and both having reasonable knowledge of relevant
facts. * * *
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