Estate of Charles K. McClatchy, Deceased, William K. Coblentz and James McClatchy, Personal Representative - Page 8

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          at the precise moment of death.  "Therefore", said the Court, "we           
          are instructed to determine the value at the moment of death of             
          the 600 shares of HFA stock and the 100 shares of Ahmanco stock.            
          In doing so we must take into account any transformations of the            
          property that are logically prior to its distribution to the                
          beneficiaries."  Id. (citation omitted).                                    
               Unlike the situation in Ahmanson, we are not called upon to            
          consider the effect of any plan of postdeath distribution of                
          decedent's corporate stock in the case before us.  We are                   
          nevertheless required to determine the consequences of the                  
          valuation change that occurred at the moment of death.  The Court           
          in Ahmanson states that it is "undisputed" that value is to be              
          determined at the moment of death, citing as settled law an                 
          analogous holding in United States v. Land, 303 F.2d 170, 171-175           
          (5th Cir. 1962).                                                            
               In the Land case, the Court of Appeals for the Fifth Circuit           
          held that the fair market value of a partnership interest at the            
          death of a partner was its full value in a situation where the              
          partnership agreement provided that if any member wished to                 
          withdraw from the partnership during his lifetime, another                  
          partner would have the option of purchasing the withdrawing                 
          partner's interest at two-thirds of its calculated value.  But,             
          at the death of a partner a surviving partner would be entitled             
          to purchase the decedent's interest at its full value.                      





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