Estate of Mary B. Bull - Page 12




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          replacement of the vintage structure and to pay decedent’s living           
          expenses during the interim.  The insurance company’s agreement             
          to pay, however, was contingent upon decedent’s pursuit and                 
          completion of restoration and unique to decedent.  Ultimately,              
          that agreement resulted in the insurance company’s paying almost            
          $2.8 million in connection with the restoration of a house that             
          was insured for coverage of $283,000 on the dwelling and only 50            
          percent of $283,000, if the insured chose to rebuild.  Of the               
          $2.8 million paid, less than $200,000 was paid for living                   
          expenses and removal of the debris caused by the fire.  The                 
          remainder of the $2.8 million was reimbursement for restoring the           
          residence, landscaping, and building contents.                              
               We cannot rely on these expenditures for purposes of                   
          valuation.  Considering the fact that about 3 years after                   
          decedent’s death, the residence was sold at arm’s length for                
          slightly over $1 million, the expenditures have no rational                 
          relationship to the value.  In a similar vein, at the time of               
          decedent’s death the estimated “completed value” of the residence           
          was an amount approaching $1 million, whereas at the time of                
          death, a willing buyer would not have offered the completed                 
          price.                                                                      
               Conventional approaches to valuation, inclusion of assets,             
          and reduction of the estate for decedent’s obligations do not               
          accurately address these peculiar circumstances.  The estate’s              






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