- 17 - seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts. See United States v. Cartwright, 411 U.S. 546, 551 (1973); sec. 20.2031-1(b), Estate Tax Regs. At decedent’s death, the principal assets in the QTIP trust were: (1) A 42-percent undivided interest in the 3,321 acres of the South Property and a 42.9-percent undivided interest in the 2,033 acres of the North Property; and (2) the two notes from Walter and Betty, representing the consideration received by the QTIP trustee when he sold the sole proprietorship assets to the general partnership on August 1, 1986. The Parties’ Contentions On brief, respondent concedes that the QTIP trustee received full and adequate consideration for the sole proprietorship assets conveyed to the general partnership on August 1, 1986, and that accordingly decedent’s estate does not include a right of action for a bargain sale of assets by the QTIP trustee. The central dispute remaining, then, is the fair market value of the QTIP trust’s undivided interests in the subject property, and more particularly, whether these interests include beneficial interests in the timber and pecan orchards on the subject property.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011