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Commissioner, 184 F.3d 1074 (9th Cir. 1999), reversing our
decision in T.C. Memo. 1996-25, regarding the proper measurement
of the property interest transferred by decedent and remanding
for a determination of the values of the property interests both
transferred and received by decedent pursuant to an October 31,
1951, agreement. The issue for decision on remand is whether
decedent received “adequate and full consideration” within the
meaning of section 2036(a)1 for the remainder interest he agreed
to transfer to his children.
FINDINGS OF FACT
We stated the detailed and intricate facts of this case in
our original opinion. See Estate of Magnin v. Commissioner, T.C.
Memo. 1996-25. We summarize the relevant facts from that opinion
and set forth additional findings of fact for purposes of
deciding the issue on remand.
1951 Agreement Between Joseph and Cyril
On October 31, 1951, decedent, Cyril Magnin (Cyril), entered
into an agreement (the 1951 Agreement or the Agreement) with his
father, Joseph Magnin (Joseph), relating to shares of stock in
two companies, “Joseph Magnin Co., Inc.” (JM) and “Specialty
Shops, Inc.” (Specialty).
The preamble to the Agreement set forth the following
1Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect as of the date of decedent’s
death, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
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