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several arguments for disregarding the 1995 FSA, contending that
the 1995 FSA fails to satisfy either the pre-section-2703
requirements that it set a fixed and determinable price and be
legally binding, or the requirements of section 2703. We address
each issue in turn.
Pre-Section-2703 Requirements
Respondent argues that the 1995 FSA did not contain a fixed
and determinable price for decedent's FABG stock because it did
not give the Rod Amlie Trust "the right to buy any fixed amount
of the stock for the price set therein". Respondent observes
that the actual amount of decedent's FABG stock the Rod Amlie
Trust would acquire by purchase rather than bequest was
unknowable until after decedent died and her farm land was
valued, because the Trust was bequeathed such stock as would
equal one-half the value of the farm land, plus one-third of the
residual estate. Indeed, respondent contends, it was possible
that none of decedent's FABG stock would be sold pursuant to the
options in the 1995 FSA if the value of one-half the farm land
plus one-third of the residual estate exceeded the value of the
FABG stock (using the $118 price fixed in the 1995 FSA).
20(...continued)
prescribed the consideration that was required to be paid for the
former. However, we need not consider this aspect of the
estate's argument, given our ultimate conclusion herein that sec.
2703 does not cause any element of the 1995 FSA to be disregarded
for Federal estate tax purposes.
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