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assets prior to Ahmanson's death. There were 99 nonvoting shares
and one voting share of Ahmanco common stock outstanding.
At the moment of decedent's death, Ahmanco, the erstwhile
shell, became unconditionally entitled to the 600 shares of
voting HFA stock under the terms of certain declarations of
trust. Under the same declarations of trust, Ahmanson
Foundation, a charitable trust received the 99 nonvoting shares
of Ahmanco. The one voting share of Ahmanco remained in the
Ahmanson family.
On the foregoing facts, Ahmanson Foundation argued that the
value of the HFA stock should be disregarded, and that the
Ahmanco stock should be valued in separate units, with most of
the value being allocated to the block of nonvoting stock going
to charity, and a relatively nominal value being allocated to one
share of voting stock going to the family.
The Ninth Circuit held that even though Ahmanco had no
assets, and therefore no value at the moment before decedent's
death, "we must valuate the HFA and Ahmanco stock as of the
moment of [the decedent's] death, bearing in mind that the HFA
shares, in their entirety, have become an asset of Ahmanco. In
effect, this is to valuate the Ahmanco stock." 674 F.2d at 767.
Thus, the Court valued the Ahmanco stock, not before decedent's
death, when the stock had no value, nor after decedent's death,
when the ownership became fragmented under the estate plan, but
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