-37-
Since the formation and funding of Schutt I and II, the net
cashflow of each trust has been distributed pro rata on a
quarterly basis, as required by the trust documents. The trusts
have also filed annual Federal income tax returns reporting,
inter alia, the pro rata distributive shares of income, credits,
deductions, etc., allocated to each unit holder. Through at
least the time of decedent’s death, the trusts had never sold any
of the DuPont or Exxon shares used to fund the entities, nor had
they acquired any other assets.9 Decedent’s personal assets were
not commingled with those of Schutt I or Schutt II.
Estate Tax Proceedings
As previously stated, decedent died on April 21, 1999,
approximately 1 year after Schutt I and II were formed. A Form
706, United States Estate (and Generation-Skipping Transfer) Tax
Return, was filed on behalf of decedent on or about January 21,
2000. An election was made therein to use the alternate
valuation date of October 21, 1999. The value reported for the
gross estate on the Form 706 was $61,590,355.08, which included
$15,837,295.45 and $7,237,104.56 for the Revocable Trust’s
interests in Schutt I and Schutt II, respectively. As of October
9 At trial, on direct examination, Mr. Dineen was asked:
“And have either Schutt I or Schutt II sold DuPont stock?” He
responded: “No.” Although not free from ambiguity given that
Schutt II held only Exxon stock, a reasonable inference from this
testimony would appear to be that neither business trust had sold
assets through the time of trial.
Page: Previous 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 NextLast modified: May 25, 2011