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For purposes of Schedule B of the Estate's Form 706, the
liquidation value of Johnco was reported as follows:
Built-in
Asset Fair market value Tax basis capital gains
Cash $25,000 $25,000 -0-
Investments 492,000 492,000 -0-
Building and
equipment 196,000 196,000 -0-
Timber Property 5,239,000 329,000 $4,910,000
and Harris Cnty.
Real Estate
Other 19,000 19,000 -0-
Subtotal 5,971,000 1,061,000 4,910,000
Liabilities (14,000) --- ---
Net asset value 5,957,000 --- ---
Capital gains (1,414,000) --- ---
Selling costs (350,000) --- ---
Liquidation value 4,193,000 --- ---
C. Unified Credit Bequest
In December 1993, acting in its capacity as successor
independent administrator of John's Estate, Northern Trust funded
the unified credit bequest in John’s will. After taking into
account all taxable gifts made to him by John during his lifetime
and all other amounts passing to him which were includable in
John's taxable estate, Northern Trust concluded that Andrew was
entitled to receive a bequest of property equal in value to
$111,617.49 as his share of the unified credit bequest, including
a life insurance policy on Andrew’s life valued at $5,366. Thus,
Northern Trust computed that $106,251 worth of Johnco stock was
required to fund the balance of Andrew’s share of the bequest
(after taking into account the life insurance interest). Using
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Last modified: May 25, 2011