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disregard the 1987 redemption agreement because of the 1991
amendment. The 1987 redemption agreement was entered into before
the effective date of section 2703. The 1991 amendment, however,
was entered into on April 28, 1991, which, with regard to
amendments, is after the effective date of section 2703.
Nevertheless, April 28, 1991, also is a date after January 28,
1991 (the alternate valuation date). As of that date
(January 28, 1991) the 1987 redemption agreement was unamended.
Section 2703 is inapplicable.
IV. 1987 Redemption Agreement Not Controlling
A. Background
Section 2001(a) imposes a tax on “the transfer of the
taxable estate of every decedent who is a citizen or resident of
the United States.” Section 2031(a) states: “The value of the
gross estate of the decedent shall be determined by including to
the extent provided for in this part, the value at the time of
his death of all property, real or personal, tangible or
intangible, wherever situated.” Section 2032 provides that the
value of the gross estate may be determined as of a date that,
generally, is 6 months after the decedent’s death, if the
executor so elects.
The standard for valuation is fair market value. Section
20.2031-1(b), Estate Tax Regs., defines fair market value as “the
price at which the property would change hands between a willing
buyer and a willing seller, neither being under any compulsion to
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