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allocated other assets of the estate, primarily marketable
securities and cash, with a date of death value of $4,025,000.
Under the terms of the agreement, Andrew and Dinah were each
entitled to the income earned on the properties they would
receive from the date of the settlement until the date of
distribution. Although siblings, Andrew and Dinah were
represented by separate counsel in the settlement. Inasmuch as
Andrew and Dinah were motivated to ensure that they received
everything they were entitled to under the Will, their interests
were adverse, and they were acting at arm's length in entering
into the family settlement agreement.
ULTIMATE FINDINGS OF FACT
Under the terms of the unified credit bequest, 1,224 shares
of Johnco stock were bequeathed to Andrew. Accordingly, 81,641
shares of Johnco stock are includable in decedent's gross estate.
On September 22, 1991, the fair market value of 81,641
issued and outstanding shares of Johnco (a 98-percent interest)
was $5,784,477.
8(...continued)
shares of Johnco remaining in the Estate after the funding of the
unified credit bequest to Andrew represented approximately 97
percent of the outstanding shares of Johnco stock. Presumably
RPR’s December 1992 appraisal had an impact on the ultimate
settlement amount of $4,025,000.
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