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lists the transferred interests and compares the 1993 gift tax
notice values to amounts paid by the purchasers.
B. 1994 Estate Transfers
Dave True died of a heart attack on June 4, 1994. Before
his death, he had transferred substantially all his assets to his
living trust. Under section 5.2 of the living trust, Dave True
reserved the power to appoint the trust estate at the time of his
death to “such persons, corporations or other entities and in
such shares and interests as I may specify by appropriate
provisions in any instrument executed and acknowledged by me and
delivered to the [trustees of the living trust].” On September
14, 1984, Dave True had exercised his power of appointment by
executing the appointment document.
Under the appointment document Dave True bequeathed to his
sons the maximum amount that could pass without estate tax by
reason of the unified credit (equally and free of trust) and the
remainder of the trust estate to a qualified terminable interest
property trust (QTIP trust) for Jean True. At Jean True’s death
(or from the beginning, had Jean predeceased Dave), the balance
of the trust estate and any tangible personalty was to be divided
equally among his sons or their heirs. However, before these
bequests were funded, and pursuant to the terms of the buy-sell
agreements, the trustees of the living trust sold Dave True’s
interests in the True companies to Jean True, Hank True, Diemer
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