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contends fixed the value for Federal estate tax purposes.
Respondent determined that the FABG stock should be valued at the
price paid for it by FABG within a month after decedent's death
($1,489,725) and argues in this regard that the 1995 FSA should
be disregarded in ascertaining the stock's value for Federal
estate tax purposes.
Federal estate tax is imposed on the transfer of the taxable
estate of every citizen or resident of the United States. Sec.
2001(a). The taxable estate is defined as the gross estate less
allowable deductions. Sec. 2051. The gross estate includes the
value of all property owned by a decedent at the time of death.
Sec. 2031. In most instances, the value of the gross estate is
the fair market value of the included property as of either the
date of death, or the alternate valuation date under section 2032
if elected by the executor as is the case here. Sec. 20.2031-
1(b), Estate Tax Regs.
An exception to the general valuation rule exists when the
property in question is subject to an enforceable restrictive
agreement, such as a buy-sell arrangement. See, e.g., St. Louis
County Bank v. United States, 674 F.2d 1207, 1210 (8th Cir.
1982). For a restrictive agreement to control value for Federal
estate tax purposes, it must meet certain requirements set forth
in the regulations and the caselaw. Sec. 20.2031-2(h), Estate
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