Decedent’s family owned a partnership that invested in real estate that was worth $4 million at Decedent’s death. Decedent owns a one-quarter interest in the family partnership.
A. What is the value of the Decedent’s partnership interest for estate tax purposes?
B. If Decedent’s interest qualifies for a 20 percent minority discount and a 20 percent marketability discount, what is the value of Decedent’s partnership interest for estate tax purposes?
C. Is there any difference in result in question (b), above, if Decedent had given away another 40 percent interest in the partnership two years prior to Decedent’s death?
D. What is the result in question (b), above, if the real estate was in a corporation rather than a partnership?