Estate of Charles K. McClatchy, Deceased, William K. Coblentz and James McClatchy, Personal Representative - Page 1

                                   106 T.C. No. 9                                     

                               UNITED STATES TAX COURT                                

               AND JAMES MCCLATCHY, PERSONAL REPRESENTATIVE, Petitioner               
                   v. COMMISSIONER OF INTERNAL REVENUE, Respondent                    

               Docket No.  21876-93.            Filed April 3, 1996.                  

                    Decedent owned shares of stock that before his                    
               death were subject to certain securities law                           
               restrictions adversely affecting the value of the                      
               shares.  The restrictions were not applicable to the                   
               shares in the hands of decedent's personal                             
               representatives, so that the per share value                           
               automatically increased from $12.3375 to $15.56 at                     
               decedent's death.  Held:  the per share value for                      
               Federal estate tax purposes is $15.56, since that was                  
               the value at the "moment" of decedent's death.                         
               Ahmanson Foundation v. United States, 674 F.2d 761 (9th                
               Cir. 1981), applied; United States v. Land, 303 F.2d                   
               170 (5th Cir. 1962), followed; sec. 2033, I.R.C., which                
               mandates the inclusion in a decedent's gross estate of                 
               the value of all property to the extent of his/her                     
               interest therein at the time of death, does not require                
               a different result; Estate of Harper v. Commissioner,                  
               11 T.C. 717 (1948), explained.                                         

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