Estate of Lewis A. Bailey, Deceased, Frances Jeanette Foster, Executrix - Page 6

                                        - 6 -                                         
          real property was previously held in the grantor trust, “which              
          Trust was revoked by Grantor before this conveyance.”   Also on             
          January 31, 1995, decedent and Melba executed an assignment of              
          the promissory note to three of decedent’s children (Harold,                
          Roger, and Frances).                                                        
          Decedent’s Estate Tax Return                                                
               C&L Bailey Stock                                                       
               On Form 706, United States Estate (and Generation-Skipping             
          Transfer) Tax Return, Schedule B--Stocks and Bonds, the value of            
          decedent’s 50 shares of C&L Bailey stock was reported as                    
          $370,708.  Similarly, on Schedule F–-Other Miscellaneous Property           
          Not Reportable Under Any Other Schedule, the value of the 50                
          shares included in decedent’s gross estate as QTIP property was             
          reported as $370,708.  Supporting schedules attached to the Form            
          706 indicate that $370,708 represents 25 percent of an indicated            
          $2,965,662 total “liquidation value” of the two motels, after               
          applying a 50-percent discount, described on the schedules as a             
          “Key Man, Minority Ownership, Lack of Market Discount”.                     
               The $2,965,662 total “liquidation value” of the two motels             
          (as indicated on the schedules to decedent’s Form 706)                      
          represented the estimated value of C&L Bailey’s assets (primarily           
          the California motel and the Arkansas motel) net of corporate               
          liabilities.  For this purpose, the estimated value of the motels           
          was based on two appraisal reports:  (1) A May 1996 report (the             

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