- 92 -
The majority opinion, using the definition of fair market
value in the Federal gift tax regulations and the assignment
agreement, determines that the fair market value of the gifted
interest used by the donees is not the fair market value of such
interest. It follows that the assignee percentage interest
allocated to CFT in the confirmation agreement in March 1996 (as
well as the respective assignee percentage interests allocated in
that confirmation agreement to petitioners’ children, the trusts,
and the Symphony) is not the assignee percentage interest that
petitioners transferred in the assignment agreement to that donee
on January 12, 1996.
The position of the majority opinion conflicts with the
provisions of the assignment agreement as to the respective
portions of the gifted interest that petitioners transferred
under that agreement to petitioners’ children, the trusts, the
Symphony, and CFT. Consequently, that position leads to results
that are in violation of what petitioners transferred to the
donees under that agreement. According to the majority opinion,
the aggregate fair market value of the aggregate 77.21280956-
percent assignee interests allocated to petitioners’ children and
the trusts is $9,269,089. Majority op. p. 64. However, under
the assignment agreement, petitioners transferred to their
children and the trusts portions of the gifted interest having an
aggregate fair market value equal to $6,910,933, determined
Page: Previous 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 NextLast modified: May 25, 2011