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d. Failure To Seek Significant Professional
Advice in Selecting Formula Price ... 109
e. Failure To Obtain or Rely on Appraisals
in Selecting Formula Price ....... 112
f. Exclusion of Significant Assets From
Formula Price ............. 114
g. No Periodic Review of Formula Price ... 115
h. Business Arrangements With True Children
Fulfilled Dave True’s Testamentary
Intent ................. 118
2. Adequacy of Consideration Test ....... 120
a. Petitioners’ Brodrick v. Gore/Golsen
Argument ............... 121
b. Petitioners’ Assertion That Respondent
Impermissibly Applied Section 2703
Retroactively ............. 124
c. Did Tax Book Value Pricing Formula
Represent Adequate and Full
Consideration? ............ 128
3. True Family Buy-Sell Agreements Were
Substitutes for Testamentary Dispositions 140
E. Conclusion: True Family Buy-Sell Agreements
Do Not Determine Estate Tax Values ..... 141
IV. Do True Family Buy-Sell Agreements Control
Gift Tax Values? ................ 144
A. Framework for Analyzing Gift Tax Valuation
Issues ................... 145
B. Buy-Sell Agreements Do Not Determine Value
for Gift Tax Purposes ............ 146
C. Application of Gift Tax Rules to Lifetime
Transfers by Dave and Jean True ....... 149
1. True Family Buy-Sell Agreements Do Not
Control Gift Tax Values ......... 149
2. Lifetime Transfers by Dave and Jean True
Were Not in Ordinary Course of Business . 151
V. Impact of NonControlling Buy-Sell Agreements
on Estate and Gift Tax Valuations ....... 153
Issue 2. If True Family Buy-Sell Agreements Do Not
Control Values, What Are Estate and Gift Tax
Values of Subject Interests? ........... 155
FINDINGS OF FACT ...................... 155
I. True Oil ..................... 156
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Last modified: May 25, 2011