- 21 - unpublished Order of this Court. With respect to the bylaws, the pertinent provisions merely afforded SSE an option to acquire its stock at fair market value in the event that a shareholder elected during life or at death to transfer the shares to a party other than a family member or a charity. Since such terms do not limit transferability or prevent receipt of fair market value, they would not result in a lesser value for gross estate purposes. Accordingly, we grant respondent’s motion for partial summary judgment on this point and hold that decedent’s shareholdings in SSE are to be valued in his gross estate as a unitary, unrestricted two-thirds interest in the company. B. Redemption of Only Voting Stock Respondent secondly requests this Court to find as a matter of law that “The Pre-Death Redemption Agreement executed by Marvin M. Schwan, the Foundation, Marvin M. Schwan’s revocable trust and the Schwan Corporation required the Foundation to deliver, and the Schwan Corporation to redeem, only voting stock, not both voting and non-voting stock”. Respondent contends that the language of the document as a whole, augmented by the legends stamped on various stock certificates, clearly provides that only the voting shares were to be redeemed. Petitioners in opposition assert that the express terms of the Redemption Agreement plainly require redemption of both classes.Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
Last modified: May 25, 2011