Estate of Marvin M. Schwan - Page 20




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          postulated reduction in value caused thereby would, as respondent           
          correctly observes, stem from the balkanization of decedent’s               
          interest in SSE among multiple beneficiaries.  If the Redemption            
          Agreement were to be interpreted to require redemption of only              
          the voting shares, the Redemption Agreement would essentially               
          grant to the Foundation only decedent’s equity interest plus a              
          “term interest” in voting control, while simultaneously passing             
          the “remainder interest” in voting control over SSE to other                
          beneficiaries.  Yet decedent’s interest would nonetheless pass in           
          its entirety.  Decedent would have controlled SSE at his death              
          and would have through his estate plan passed that control first            
          to the Foundation and then to his descendants.  Such is a                   
          situation where value is divided, not destroyed.  We therefore              
          conclude that the existence of the Redemption Agreement had no              
          effect on the value of decedent’s interest in SSE for gross                 
          estate purposes.                                                            
               We are equally satisfied that neither the 1992 Trust nor the           
          corporate bylaws constitute a relevant restriction to be taken              
          into account in valuing the gross estate.  As regards the 1992              
          Trust, case law indicates that restrictions contained in a                  
          revocable trust becoming irrevocable at death and essentially               
          functioning as an instrument of transfer are to be ignored in               
          making estate tax valuations.  See Citizens Bank & Trust Co. v.             
          Commissioner, 839 F.2d 1249, 1251-1252 (7th Cir. 1988), affg. an            






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