- 3 -
OPINION ........................... 59
I. Do Family Buy-Sell Agreements Control
Estate Tax Value? ............... 59
A. Framework for Analyzing Estate Tax Valuation
Issues ................... 59
B. Development of Legal Standards ........ 61
1. Case Law Preceding Issuance of Regulations . 62
2. Regulatory Authority and Interpretive
Rulings ................. 67
3. Case Law Following Issuance of Regulations
and Revenue Ruling 59-60 ........ 70
a. Was Agreement Entered Into for Bona Fide
Business Reasons? .......... 71
b. Was Agreement a Substitute for
Testamentary Dispositions? ...... 72
1. Testamentary Purpose Test ...... 73
2. Adequacy of Consideration Test .... 74
4. Statutory Changes ............. 79
II. Do 1971 and 1973 Gift Tax Cases Have Preclusive
Effect? ..................... 81
A. Petitioners’ Collateral Estoppel Argument ... 81
B. Legal Standards for Applying Collateral
Estoppel ................... 82
C. Collateral Estoppel Impact of 1971 and 1973
Gift Tax Cases ................ 85
1. Bona Fide Business Arrangement Issue .... 86
2. Whether Book Value Equaled Fair Market
Value as of Agreement Date Issue ..... 87
III. Do True Family Buy-Sell Agreements Control
Estate Tax Values? ............... 90
A. Was the Offering Price Fixed and Determinable
Under the Agreements? ............ 91
B. Were Agreements Binding During Life
and at Death? ................ 91
C. Were Agreements Entered Into for Bona
Fide Business Reasons? ........... 99
D. Were Agreements Substitutes for Testamentary
Dispositions? ................ 101
1. Testamentary Purpose Test ......... 101
a. Decendent’s Health When He Entered Into
Agreements .............. 101
b. No Negotiation of Buy-Sell Agreement
Terms ................. 102
c. Enforcement of Buy-Sell Agreement
Provisions ............... 107
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011