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limited partnership interest in the RMA FLP, and RMA, Inc., held
the remaining 1-percent interest. On December 26, 1995, Mr.
Richard Abraham was given a 30-percent interest in the RMA FLP in
exchange for the settlement of his claims against decedent’s
estate.
In a letter dated November 9, 1995, Mr. William D.
Kirchick14 explained to Ms. Cawley and Ms. Slater the methodology
used in determining the value of interests in the FLPs. The
starting point was Mr. Lipof’s appraisal valuing the Tyngsboro
property at $1.8 million or $900,000 in each partnership.15 Mr.
Kirchik then applied a 15-percent minority and a 25-percent
marketability discount, arriving at a value of $5,795 for each 1-
percent limited partnership interest. Similarly, in a letter
dated January 2, 1996, Mr. Kirchick explained his methodology to
determine the value of the RMA FLP. The starting point was Mr.
Lipof’s appraisal that the Walpole and Smithfield properties had
13(...continued)
note 15.
14With the agreement of decedent’s family and their
respective representatives, the probate court appointed Mr.
Kirchik to “work with David Goldman in creating the limited
partnerships and any and all supporting documents necessary to
implement said limited partnerships.”
15In a letter dated Nov. 9, 1995, Mr. Kirchick explained
that the daughters were deemed to have made capital contributions
of 1 percent of the total value of the partnership as their
initial capital contribution, or $9,091 each. Thus, he
calculated a total value for each partnership of $909,091 or
$9,091 for each 1-percent interest before applying discounts.
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