Estate of Mary D. Maggos - Page 25




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          contacted decedent’s attorney and recommended that decedent                 
          should be convinced to make a gift to decedent’s daughter in 1987           
          so that the statute of limitations for assessing gift tax would             
          start to run.  We find that decedent and her son entered into the           
          redemption transaction to fulfill decedent’s estate planning                
          goals and for no other reasons.  Decedent was not concerned with            
          and did not negotiate or authorize her attorney to negotiate for            
          the fair market value of her interest in PCAB.  The price                   
          received was the price that satisfied decedent’s needs while she            
          was alive, was the greatest amount her son believed he could pay,           
          and was the lowest price Nikita’s lawyers thought could be                  
          defended for gift tax purposes.  So long as the transaction could           
          be defended for Federal gift tax purposes, the fair market value            
          of the PCAB shares that were redeemed was not of material concern           
          to decedent.                                                                
               We further find that decedent, after having received                   
          competent independent legal advice, gave a fully informed consent           
          to the redemption transaction as an estate planning technique.              
          On the record before us, given the intended nature of the                   
          redemption transaction, we can find no credible evidence that               
          would support a finding that decedent was defrauded of her                  
          interest in PCAB or that there was any breach of fiduciary duty             
          by Nikita Maggos which was owed to decedent, thus entitling                 
          decedent to rescind the transaction.  We therefore reject                   






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