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arising from our determination of the increased date-of-death
fair market value of the shares. However, any such reimbursement
will not disturb or reduce the estate tax paid by the Trust with
respect to the shares owned by it that were included in the gross
estate, and with respect to which it overpaid income tax when it
sold the shares. Under the apportionment order of the probate
court, any recoupment allowed would relate solely to estate tax
that the Administration Trust has paid on the inclusion in the
gross estate of shares owned by and appointed to it. Any
adjustment through recoupment would benefit solely the
Administration Trust (and, through it, its three beneficiary
subtrusts and their beneficiaries).
On decedent’s date of death, the Administration Trust owned
5,150 of the 8,924 shares included in her gross estate. The
Administration Trust received an additional 1,500 shares from the
Ebert B. Mueller Marital Trust, pursuant to decedent’s exercise
of a testamentary general power of appointment.6 Consequently,
as of the date of death, the Administration Trust owned 6,650
shares of Mueller Co., all of which were included in decedent’s
gross estate.7 On May 30, 1986, 67 days after decedent died, the
6Decedent also exercised the same testamentary power to
appoint 1,000 shares from the same Ebert B. Mueller Marital Trust
to each of her sons, John S. Mueller and James F. Mueller.
7The gross estate also included the 2,000 shares appointed
to the two sons under the testamentary general power of
appointment, as well as 274 shares owned by the Ebert B. Mueller
(continued...)
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