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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.
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