Estate of George C. Blount, Deceased, Fred B. Aftergut, Executor - Page 51

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          out by his coventurers, actually entered into by persons at arm’s           
          length.  Nor did he attempt to establish that the method decedent           
          used to arrive at his $4 million price was similar to the method            
          employed by unrelated parties acting at arm’s length.                       
               If Mr. Grizzle were correct regarding the fair market value            
          of decedent’s BCC shares, section 2703(a) would not be triggered,           
          insofar as it applies only to those agreements that set a price             
          below fair market value, and no evidence of similar arrangements            
          would be required.  For the reasons discussed below, however, Mr.           
          Grizzle has failed to persuade us that the purchase price for               
          decedent’s BCC shares set forth in the Modified 1981 Agreement              
          was a fair market price, either when selected or at decedent’s              
          death.  Rather, we are persuaded that the price set forth in the            
          Modified 1981 Agreement is far below fair market value.  Because            
          Mr. Grizzle has failed to provide any evidence of similar                   
          arrangements actually entered into by parties at arm’s length, as           
          required by section 2703(b)(3), and his opinion is based solely             
          on his belief that the purchase price for decedent’s BCC shares             
          was set at fair market value, Mr. Grizzle’s conclusion that the             
          terms of the Modified 1981 Agreement are comparable to similar              
          agreements entered into by parties at arm’s length is                       
          unsupportable.                                                              









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