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On January 31, 2001, the US Tax Court decided the case of Estate of Adler v. Commissioner (TC Memo 2011-28). The case involved a scenario where a father executed a grant deed transferring five one-fifths interest in property for each of his five children. The deed, however, expressly stated that the father reserved unto himself the full use, control, income and possession of the property during his lifetime. Generally, for the purposes of calculating the estate tax, the IRC requires the inclusion of the full value of the property if the decedent retained possession and enjoyment of the property for life. A property divided into fractional interests, however, typically reduces the value of the property below its fair market value (due to a lack of control and marketability of the minority interests). The Tax Court held the property’s value at the decedent’s death was its full fair market value, with no discount for the division into five one-fifth interests. The Tax Court concluded by inferring that had the decedent not controlled the disposition of the entire property at death, a discount may have been appropriate.