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supposed collateral estate-tax effects of allocating the GST tax
to the charitable bequest, ignores the more direct and proximate
effect that would result from allocating the GST tax against the
grandchildren’s bequests. Even if, as the estate suggests,
allocating the GST tax against the noncharitable bequests would
lower the estate’s overall estate-tax burden, we are unpersuaded
that such an allocation would not reduce the amounts ultimately
received by the grandchildren, since the GST tax would then be
borne entirely by their shares, in contravention of the will
provision that the GST tax “not * * * reduce the gift, bequest,
or devise which constitutes a ‘direct skip’”.
We hold that the GST tax is not chargeable to the transfer
in trust for decedent’s grandchildren but rather is to be charged
to the charitable bequest to the Lubin-Green Foundation.
C. Valuation of Decedent’s 3,276 Shares of RBI Stock
Generally, the value of a decedent’s gross estate is
determined by including the value of all property, real or
personal, tangible or intangible, wherever situated. Sec.
2031(a). The value of every item of property includable in a
decedent’s gross estate is its fair market value at the time of
the decedent’s death (or the alternate valuation date). Sec.
20.2031-1(b), Estate Tax Regs. The fair market value of property
is the price at which the property would change hands between a
willing buyer and a willing seller, neither being under a
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