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eliminated. If shares of class B stock were pledged to secure a
loan that was obtained to pay taxes, the Company was obligated to
purchase sufficient shares of class B stock to permit timely
repayment of the loan.
We find that the executors have used decedent's assets in
the order she mandated. Property disclaimed by her surviving
spouse was sold and the proceeds applied within 9 months of the
date of her death to pay taxes and other obligations of
decedent's estate. Decedent's only other available assets were
the class B stock and the class E stock. Decedent directed that
class B stock be used first. Class B stock has been utilized to
satisfy the estate's remaining obligations, first by the pledging
of this stock to obtain loans to provide funds for the payment of
taxes, and then by sale of the stock to the Company in order to
provide funds for the repayment of the loans.
If a section 6166 election had been made in this case, the
executors would have needed to immediately raise $5,334,320 for
the nondeferable taxes and other debts and expenses. After
utilizing all available cash and disclaimed assets, the executors
would still have needed $3,445,737 to pay these obligations, and
the only way to obtain funds would have been the immediate sale
of class B stock. A sale would have given rise to a capital
gain, so additional stock would have had to be sold to provide
for the payment of the income tax. As a result, the executors
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