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Respondent determined that the 50- and 44.069-percent blocks of
stock should be valued as a 94.069-percent block. A 94.069-
percent block had a date-of-death value of $4,850,000. If not
aggregated, however, the 50- and 44.069-percent blocks of Ledyard
stock had date-of-death values of $2,043,500 and $1,747,500,
respectively.
The parties submitted this case fully stipulated pursuant to
Rule 122. When the petition was filed, Richard was a resident of
Santa Cruz, California, and Joan was a resident of Millbrae,
California. Aldo died a resident of Burlingame, California.
Discussion
The value of property includable in a decedent’s gross
estate is generally the fair market value of such property on the
decedent’s date of death. Sec. 2031(a); sec. 20.2031-1(b),
Estate Tax Regs. For transfer tax purposes, the fair market
value is “the price at which the property would change hands
between a willing buyer and a willing seller, neither being under
any compulsion to buy or to sell and both having reasonable
knowledge of relevant facts.” Sec. 20.2031-1(b), Estate Tax
Regs.
Respondent contends that Aldo’s testamentary GPA is
essentially equivalent to outright ownership, and, as a result,
the Ledyard stock held by Trust A should be aggregated, for
valuation purposes, with the stock Aldo owned outright. The
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