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share. The IRS issued a notice of deficiency, and the estate of
Elizabeth Davenport petitioned this Court. That case was
captioned Estate of Davenport v. Commissioner, docket No.
26022-83. For purposes of the Tax Court litigation, the estate
of Elizabeth Davenport was represented by Patricia Vestal and
Gordon Davenport. Elizabeth's Federal estate tax case was
settled by the parties without trial, and an agreed decision was
entered on May 24, 1984.
An agreement was signed by Gordon Davenport on April 18,
1984, and by Patricia Vestal on April 22, 1984, in which the
basis of the settlement agreement with regard to stock of Hondo
was set forth. In settling the case, the parties agreed that
1,610 shares of Hondo stock would be included in the gross estate
of Elizabeth at a value of $2,400 per share. The Commissioner
conceded the ownership issue, recognizing the split of ownership
of assets by Elizabeth and Birnie.
Birnie's last will and testament was drafted by Ms. Childs
and was executed by Birnie on January 26, 1970. Elizabeth's last
will and testament was drafted by Ms. Childs and was executed by
Elizabeth on January 26, 1970. The sisters' wills contained
mirror provisions. Both wills contained provisions for the
distribution of each sister's respective interest in Hondo stock.
The provision for distribution of Hondo stock in each of the
sisters' wills was consistent with their joint ownership
agreement.
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