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the John Appraisal value of the Johnco stock on John’s date of
death of $44.65 per share, Northern Trust distributed 2,380
Johnco shares to Andrew to satisfy the $106,251 balance of his
share of the unified credit bequest. In contrast, the Estate had
reported on decedent's Form 706 her interest in Johnco stock
under the assumption that $140,150 worth of Johnco stock, or
3,135 shares, would be necessary to fund Andrew's share of the
unified credit bequest.
In funding the remaining $106,251 of the bequest with Johnco
stock, Northern Trust disregarded the $86.80 per-share valuation
that had been reported on the Form 706 filed by John’s estate and
instead used a valuation of $44.65 per share, resulting in the
distribution of 2,380 Johnco shares to Andrew. If Northern Trust
had funded Andrew's share of the unified credit bequest using the
$86.80 per-share value, only 1,224 shares of Johnco stock would
have been required to fund the $106,251 balance of the bequest,
leaving 81,641 shares as part of the Estate.
IV. Decedent's Bequests of Johnco Stock
A. Testamentary Provisions
Under her Last Will and Testament (the Will), decedent made
a bequest to Andrew and Dinah in equal shares of one-half each of
such property "as necessary to use the maximum unified estate tax
credit as allowed under * * * 26 USCA 2010". The terms of this
bequest further provided that the bequest to Andrew "shall be
first satisfied out of the shares of JOHNCO, INC. common stock
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