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fee interests was less than any of the discounts claimed by the
estates.
Two of the estates’ experts conducted studies of the
relatively limited universe in which there have been sales of
fractional interests in timberland. Based on those studies, the
experts recommended a range of discounts that could be applied to
the interests being considered by the Court. These experts did
not address the question of partition or opine on a specific
discount for either estate’s fractional interest. Their opinions
had been provided to respondent during the administrative
proceeding.
The estates’ third expert had personal involvement and
experience in the purchase and sale of fractional interests.
That expert provided the Court with specific instances of
somewhat comparable sales of fractional interests in the vicinity
of the subject realty. It does not appear that this expert’s
report was provided to respondent until about 1 month before
trial. This expert’s report did address the difficulties that
can be encountered in partitioning real property. The expert
also alluded to the difficulties surrounding the trusts in which
the decedents held fractional interests, but the report did not
establish those facts. Respondent was not confronted with the
factual predicate that partition may not have been a viable
approach until the trial when the estates’ witnesses testified
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Last modified: May 25, 2011