- 33 -
ULTIMATE FINDING OF FACT
On the valuation date, the fair market value of the estate
shares was $5,757,296 ($3,840.76 per share).
OPINION
The issue for decision is the fair market value on the
valuation date (May 20, 1993) of 1,499 shares of Peoples common
stock included in decedent's gross estate.
Valuation is a question of fact, and the trier of fact must
weigh all relevant evidence to draw the appropriate inferences.
See Commissioner v. Scottish Am. Inv. Co., 323 U.S. 119, 123-125
(1944); Helvering v. National Grocery Co., 304 U.S. 282, 294-295
(1938); Anderson v. Commissioner, 250 F.2d 242, 249 (5th Cir.
1957), affg. in part and remanding in part on another ground T.C.
Memo. 1956-178; Estate of Newhouse v. Commissioner, 94 T.C. 193,
217 (1990); Skripak v. Commissioner, 84 T.C. 285, 320 (1985).
Fair market value is defined for Federal estate and gift tax
purposes as the price that a willing buyer would pay a willing
seller, both having reasonable knowledge of all the relevant
facts and neither being under compulsion to buy or to sell. See
United States v. Cartwright, 411 U.S. 546, 551 (1973) (citing
sec. 20.2031-1(b), Estate Tax Regs.); see also Snyder v.
Commissioner, 93 T.C. 529, 539 (1989); Estate of Hall v.
Commissioner, 92 T.C. 312, 335 (1989). The willing buyer and the
willing seller are hypothetical persons, rather than specific
individuals or entities, and the peculiar characteristics of
Page: Previous 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 NextLast modified: May 25, 2011