Theodore S. Prokopov and Georgine O. Prokopov - Page 4

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               Mr. Williams, Peter G. Ogden, and petitioner-wife (Mrs.                
          Prokopov) served as co-executors of Mrs. Ogden's estate.4  At the           
          time of her death, Mrs. Ogden had not exercised her noncumulative           
          right to withdraw the greater of $5,000 or 5 percent of the value           
          of the trust's corpus.  As of May 11, 1990, the date of Mrs.                
          Ogden's death, Oak Den had a fair market value of $600,000, and             
          the trust's corpus had a fair market value of $755,759.14.  In              
          computing her estate tax liability, the executors of Mrs. Ogden's           
          estate included 5 percent of the fair market value of the trust's           
          corpus, as of May 11, 1990, in her gross estate.                            
               In 1992, Oak Den was sold to Ryan's Family Steak House, Inc.           
          (RFSH) for $600,000.  For purposes of calculating the trust's               
          gain on the sale of Oak Den, Mr. Williams determined that Oak Den           
          had an adjusted basis of $276,050.5   Expenses associated with              

               3(...continued)                                                        
                    * * * Upon the death of my wife, [], the                          
                    remaining principal or corpus of the said                         
                    trust shall be distributed as my wife shall                       
                    direct in her will by specifically referring                      
                    to and exercising the special power of                            
                    appointment in her last will and testament;                       
                    provided, however, that in no event may she                       
                    exercise this power in favor of herself, her                      
                    creditors, her estate, or the creditors of                        
                    her estate; provided further, however, that                       
                    this power shall be exercisable only in favor                     
                    of my lineal descendants or spouses of lineal                     
                    descendants.  * * *                                               
               4Mrs. Prokopov is the daughter of Mr. and Mrs. Ogden.                  
               5In deriving this figure, Mr. Williams first reduced Oak               
          Den's fair market value at the time of Mr. Ogden's death by 5               
                                                             (continued...)           




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