Estate of Austin Korby, (2005)

Extract

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Estate of Austin Korby, (2005)

T.C. Memo. 2005-103

UNITED STATES TAX COURT ESTATE OF AUSTIN KORBY, DECEASED, AUSTIN KORBY, JR., TRUSTEE OF THE AUSTIN AND EDNA KORBY LIVING TRUST, AND ESTATE OF AUSTIN KORBY, DECEASED, TRANSFEROR, AUSTIN KORBY, JR., TRUSTEE OF THE AUSTIN AND EDNA KORBY LIVING TRUST, TRANSFEREE, Petitioners v.

COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 18452-02. Filed May 10, 2005.

David W. Johnson and James A. Beitz, for petitioners. Helen H. Keuning, for respondent.

MEMORANDUM FINDINGS OF FACT AND OPINION GOEKE, Judge: Respondent determined a deficiency of $1,070,482 in the Federal estate tax of the Estate of Austin Korby (the estate).1 After concessions, there are two issues remaining for decision. (1) Is the value of the assets Austin and Edna Korby (Austin and Edna or the Korbys) transferred to the Korby Properties, A Limited Partnership (KPLP), includable in the gross estate under sections 20362 and 2038? We hold that 58.46 percent of KPLP's value is includable under section 2036(a)(1). (2) Is the value of an annuity purchased in 1995 includable in the gross estate? We hold that the value of the 1995 annuity is so includable.

FINDINGS OF FACT Some of the facts have been stipulated and are so found. The stipulation of facts, supplemental stipulation of facts, second supplemental stipulation of facts, and attached exhibits are incorporated herein by this reference. At the time the petition was filed, the mailing address for the estate was in Fergus Falls, Minnesota, and Austin Dennis Korby, Jr. (Dennis), Austin and Edna's son and the trustee of the Austin and Edna Korby Living Trust (the living trust), resided in Fergus Falls, Minnesota. Austin died in Minnesota. I. Background Austin and Edna were married in 1948. They had four sons:...

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