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liabilities in the amount of $3,402,530, and State estate tax
liabilities in the amount of $888,356. At the time of decedent's
death, the petitioner and Trust had only approximately $10,000 of
liquid assets and approximately $68,000 in the form of a tax
claim for a refund for the 1988 and 1989 tax years, available to
meet the above liabilities. Consequently, Messrs. Lanier and
Pearce decided it was necessary to sell the land and cattle held
by the Trust in order to pay the debts of the estate, including
the death tax liabilities, as well the mortgage debt on the
cattle operation. In a meeting following decedent's funeral, the
beneficiaries of the Trust expressed their agreement with the
trustees’ decision to sell.
F. Elgin Bayless (Mr. Bayless), a real estate appraiser, was
hired to appraise the personal and real property included in
petitioner's Federal estate tax return. Messrs. Lanier and
Pearce refrained from marketing the estate property while they
awaited the appraisal report for pricing guidance. On
December 10, 1991, Mr. Bayless delivered his appraisal report.
The report indicated that the Fishbranch parcel was landlocked
and that the estate had no legal access to the property. Since
the 1960's, decedent had used the roads along the Kissimmee
canal, which were owned by the South Florida Water Management
District (Water District), to travel back and forth between
Fishbranch and Basinger. Decedent had never obtained a permit to
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