T.C. Memo. 2001-174
UNITED STATES TAX COURT
ESTATE OF MARVIN M. SCHWAN, DECEASED, LAWRENCE A. BURGDORF,
SPECIAL ADMINISTRATOR, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
THE MARVIN M. SCHWAN FOUNDATION, f.k.a. THE KING’S FOUNDATION,
TRANSFEREE OF A TRANSFEREE OF THE ESTATE OF MARVIN M. SCHWAN,
DECEASED, ALFRED PAUL G. SCHWAN AND LAWRENCE A. BURGDORF,
TRUSTEES, Petitioner v. COMMISSIONER OF INTERNAL REVENUE,
Respondent
Docket Nos. 21554-97, 21555-97. Filed July 13, 2001.
At the time of his death, D owned two-thirds of
the voting and nonvoting shares in SSE, a closely held
corporation. D’s estate plan provided for the
distribution of such shares to a charitable foundation
and for the subsequent redemption by SSE of certain of
the “securities” as defined in a redemption agreement.
The dispute between the parties in these cases centers
on the valuation of D’s SSE stock for purposes of
computing the gross estate and the allowable charitable
deduction under Federal tax laws. On petitioners’
motion for summary judgment and respondent’s cross-
motion for partial summary judgment, held:
(1) Because of potential impediments under State
law relating to stockholder rights, an alleged power on
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