Estate of William Busch, Deceased, Mary Dana, Executor - Page 30




                                       - 30 -                                         
               We do not accept respondent’s argument that no discount                
          should be employed because the coowners were cooperative and                
          jointly sought to find a buyer for the Busch property.  That is a           
          matter of conjecture, and if a buyer purchased decedent’s one-              
          half interest, there is no showing here that decedent’s sister-             
          in-law’s trust would have cooperated with any coowner, including            
          decedent’s estate.  More significantly, the coowners’ intentions            
          were discernable as of the date of decedent’s death.  It was                
          obvious that the owners and/or heirs to the Busch property were             
          not interested in continuing its agricultural use.  Accordingly,            
          we conclude that some discount for the partial interest is called           
          for; the question that remains is the size of that discount.                
               DeVoe’s partial interest discount was based on five of the             
          nine comparable sales and ranged from 18.8 percent to 45 percent.           
          Two of the five involved 50-percent interests, and they had                 
          discounts ranging from 27.5 percent to 45 percent.  DeVoe                   
          concluded that those two sales showed that a large fractional               
          interest resulted in a larger discount, and he concluded that a             
          40-percent discount was appropriate.  DeVoe, however, did not               
          explain what aspects of the two sales relied on were comparable             
          to the circumstances we consider involving the Busch property.              
               Hulberg discussed several factors in also arriving at a 40-            
          percent discount for the fractional interest decedent held in the           
          Busch property.  First, he explained that a fractional interest             
          reflected a lack of control.  Although decedent’s interest was              




Page:  Previous  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

Last modified: May 25, 2011