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Unless otherwise noted, all section references are to the
Internal Revenue Code in effect at decedent's death, and all Rule
references are to the Tax Court Rules of Practice and Procedure.
After concessions, including respondent's concession of the
penalty, the sole issue for decision is whether, for purposes of
computing the gross estate of James Waldo Hendrickson (decedent),
the fair market value of 1,499 common shares of Peoples Trust and
Savings Bank of Boonville, Indiana (Peoples), was $4,497,000
($3,000 per share) as petitioner contends, $8,938,912 ($5,963.25
per share) as respondent contends, or some other amount. We hold
that the fair market value was $5,757,296 ($3,840.76 per share).
FINDINGS OF FACT
Decedent died testate on May 20, 1993 (the valuation date),
survived by his two sons: Mark Hart Hendrickson (Mark) and
Vinson Eric Hendrickson. Decedent and Mildred A. Hendrickson,
the mother of decedent's sons, had been divorced in 1986, after
more than 45 years of marriage.
When the petition was filed, Indiana was the residence and
principal place of business of Mark and Peoples, respectively,
the co-personal representatives of decedent's estate.1
1 Under Indiana law, the term "personal representative"
includes "executor". Ind. Code Ann. sec. 29-1-1-3 (Michie
Supp. 1998). In accordance with decedent's will, we use the
term "co-personal representative" exclusively in this case.
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