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the part of the foundation to recapitalize SSE after
D’s death and convert all nonvoting shares to voting
shares is an insufficient basis on which to conclude,
as a matter of law, that the value of the stock must
necessarily be identical for gross estate and
charitable deduction purposes.
(2) D’s voting and nonvoting shares in SSE must be
valued for gross estate purposes as a unitary, two-
thirds interest, unrestricted by the terms of the
redemption agreement. The requirement under D’s estate
plan that the SSE shares be distributed to the
foundation, and that certain shares be redeemed by SSE,
did not affect the value of the shares in the gross
estate.
(3) The redemption agreement is ambiguous as to
whether it required redemption of only the voting
shares, as opposed to both the voting and nonvoting
stock.
(4) The charitable deduction available to D’s
estate must be reduced by the burden of taxes and
administrative expenses, and a bonus received by the
estate after D’s death cannot be taken into account in
calculating such tax and expense burden.
Larry R. Henneman and Ann B. Burns, for petitioner in docket
No. 21554-97.
Joseph M. Hassett, George H. Mernick III, and Albert W.
Turnbull, for petitioner in docket No. 21555-97.
Lawrence C. Letkewicz, Marjory A. Gilbert, and William G.
Bissell, for respondent.
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Last modified: May 25, 2011