Negron v. United States: The Sixth Circuit Improperly Applied the Eighth Circuit's Unreasonable and Unrealistic Results Exception Resulting in Its Conclusion That the IRS Annuity Tables Must Be Used to Value an Annuity with a Marketability Restriction
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Authors
Schmidt, Michael
Issue Date
2010
Volume
43
Issue
Type
Journal Article
Language
Keywords
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Abstract
INTRODUCTION|In Negron v. United States, the United States Court of Appeals for the Sixth Circuit added its opinion to the federal circuit court split on the proper method to determine the value of a stream of future lottery payments for estate tax purposes. Every federal circuit court that has considered the issue has used the same test to determine whether deviating from the standardized Internal Revenue Service's ("IRS") annuity tables is warranted. The federal circuit courts use IRS annuity tables to value an annuity unless the proponent of departure can prove two things. First, the proponent must prove that the IRS annuity tables produced an unreasonable and unrealistic result. Second, the proponent must prove that a more realistic and reasonable valuation method was available. The federal circuit courts are split, however, regarding how to value future lottery payments when a marketability restriction applies to those future payments. The United States Court of Appeals for the Second and Ninth Circuits have held that the IRS annuity tables produced an unrealistic result...
Description
Citation
43 Creighton L. Rev. 945 (2009-2010)
Publisher
Creighton University School of Law