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a $1.4 million commission because, he alleged, the decedent had
retained him to sell assets worth at least $14 million in return
for a 10-percent commission. These assets, Pasko alleged,
included the decedent’s diamonds, jade and ivory collections,
ancient Chinese artifacts, and handmade unique wool rug.3 The
finder’s fee document, signed in the name of the decedent,
provided that Pasko had the authority to sell for $20 million the
decedent’s “ancient ornamental Chinese artifacts for a period
from Oct. 20 to Nov. 20, 1990 with no extension allowed. This
lot also includes a hand made [sic] unique wool 4' x 8' rug of
Moslem theme.” The finder’s fee document provided that Pasko
would receive a commission equal to 10 percent of the sales price
and that “Any and all commissions to be paid by the buyer as
finders [sic] fee”.4 Although diamonds were not specifically
mentioned in the finder’s fee agreement, Pasko understood this
agreement to include the decedent’s diamonds.
3 The estate’s Federal estate tax return did not report that
the decedent owned at his death any jewelry or loose gemstones.
Nor were either of those items reported as a gift on any of the
gift tax returns filed by or on behalf of the decedent, his
trust, or the estate. The estate’s Federal estate tax return
also did not report that the decedent owned at his death a
significant amount of jade, ivory, Chinese artifacts, or rugs.
The coexecutors reported on the estate’s Federal estate tax
return that the value of the decedent’s collection of ivory,
jade, rugs, and other collectibles totaled $39,065.
4 The fact that the buyer was liable for the 10-percent
commission on $20 million means that the buyer would need to pay
$22 million for the specified items in order for Pasko to collect
his $2 million commission.
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Last modified: May 25, 2011