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As found above, in October 1995, Ms. Cawley and Ms. Slater
each transferred $160,000 to their mother in exchange for certain
percentages in their respective FLPs.30 The problem here is that
there is no evidence as to the fair market value of the FLP
interests on the date that the daughters purchased them. The
percentages that the daughters received in the exchange were on
the basis of Mr. Lipof’s appraisal of the underlying real estate.
Mr. Kirchik then applied minority and marketability discounts to
arrive at a price per 1-percent interest. There is no evidence
that the discounts taken under these facts were appropriate.
Indeed, in his letters, Mr. Kirchik specified that he made “no
representation * * * that these discounts will hold up”. While
we agree that in certain circumstances discounts may be
appropriate in valuing interests in property, nonetheless there
must be some showing that the discounts taken were appropriate.
Mr. Kirchik’s letters31 provide no basis upon which we may judge
whether the discounts taken were appropriate. There are no
expert witness reports in the record, and no experts testified at
trial. Accordingly, we agree with respondent that the record
fails to demonstrate that these payments constitute adequate and
full consideration as required by section 2036. However, we do
30See supra notes 16 and 17.
31Mr. Kirchik did not testify at trial.
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