- 22 -
It is determined that on January 25, 1982, the donor as
co-trustee of the Joseph Cidulka Revocable Trust,
transferred 424 shares of State Outdoor Advertising,
Inc. with a fair market value of $2,470,000.00 from a
grantor trust. As consideration for this transfer, the
donor received a promissory note with a fair market
value of $307,380.00. Therefore, the total gifts of
the donor are increased $2,162,620.00 for the gift tax
year ended December 31, 1982.
OPINION
The major issue in this case is the value of the stock of
SOAI on January 25, 1982. For some years prior to 1982 decedent
had from time to time given stock in SOAI to his son John Cidulka
and to John's then wife Charlesa Cidulka, who had immediately
transferred the shares to John, so that as of the end of 1981,
John Cidulka held 378 shares of stock of SOAI including shares
given to him and Charlesa Cidulka in 1981. A revocable trust set
up by decedent to hold certain assets of his, including stock in
SOAI, held 424 shares at the end of 1981 and 6 shares were listed
in the names of each of John Cidulka's children, John Joseph and
Lauren, who were in their teens. Of the 6 shares held by each
child, 3 shares had been transferred by decedent in 1980 and 3
shares in 1981. As of the beginning of January 25, 1982,
decedent owned through his trust approximately 52 percent of the
outstanding shares of SOAI consisting of 424 shares, and the
remaining shares totaling 390 were held by John Cidulka and in
the names of his two children.
The parties disagree as to whether the gifts made on January
25, 1982, whereby the trust transferred 10 shares to John
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011