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timber as a sale or exchange of property used in a trade or
business. On the valuation date, Johnco's section 631(a)
election could be expected to apply to all subsequent taxable
years.
D. Liquidation Prospects
It was stipulated that no liquidation of Johnco was
contemplated as of decedent’s date of death or at the time of
trial.
III. Johnco Stock Includable in Decedent's Estate
A. Bequests by John B. Jameson, Jr.
At the time of his death, John owned 82,865 of the 83,000
issued and outstanding shares of Johnco as separate property;
Andrew owned the remaining 135 shares. In Article VI of his
will, John made a specific bequest of his remaining available
unified credit amount (computed as $299,850) to his two children,
Andrew and Dinah (the unified credit bequest), as follows:
I give, devise and bequeath to my two children, DINAH
BOLTON JAMESON and ANDREW BOLTON JAMESON, in equal
shares of � each, so much of my property, in cash or in
kind, or partly in cash and partly in kind, as
necessary to use the maximum unified estate tax credit
as allowed under Federal Estate Tax Law as defined in
26 USCA 2010. * * *
Article VI further provided that Andrew's share of the unified
credit bequest “shall be first satisfied out of the shares of
JOHNCO, INC. common stock which I own, as such shares exist and
are valued by independent appraisal as of my date of death.”
Under the will, John’s residuary estate passed to decedent. The
residuary estate included all of the shares of Johnco common
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Last modified: May 25, 2011