The decedent owned fractional interests in artwork at the time of death that had been placed in a grantor-retained interest trust (GRIT), but had signed an agreement waiving his right to file a partition action.  The decedent survived the 10-year term of the GRIT with the decedent's undivided interest passing equally to the decedent's three children with each child receiving a 16.67 percent interest in the artwork.  The decedent's spouse died before the end of the GRIT with her undivided 50 percent interest in the artwork passing to the decedent.  However, the decedent disclaimed a sufficient amount of interest in the artwork to optimize the use of the unified credit so as to pass the disclaimed portion to his children without estate tax.  The decedent then entered into an agreement with the children giving up his right to partition.  The waiver of his right was disregarded for valuation purposes under I.R.C. Sec. 2703(a)(2) - the provision that states that property value is to be determined without regard to any restriction on the right to sell or use property.  In addition, the Tax Court held that the exception from I.R.C. Sec. 2703(a)(2) contained in I.R.C. Sec. 2703(b) did not apply.  The Tax Court applied a 10 percent discount to the pro-rata value of the artwork due to uncertainties concerning their value associated with the children's intentions concerning the artwork.  On appeal, the court held that a 45 percent discount should apply because the IRS provided no evidence as to any discount, simply arguing that no discount should apply.  Conversely, the court noted that the estate provided substantial evidence on the discount issue.  Thus, when the Tax Court rejected the IRS position of no discount, the Tax Court should have accepted the estate's evidence that IRS failed to contradict.  Estate of Elkins v. Comr., No. 13-60472, 2014 U.S. App. LEXIS 17882 (5th Cir. Sept. 15, 2014), rev'g., 140 T.C. 86 (2013).