- 32 -
787 (Iowa 1901) (actions taken on ward's behalf by conservator
under the direction of the probate court are binding on ward,
absent fraud).23
In sum, we conclude the 1995 FSA satisfies the pre-section-
2703 requirements that it set a fixed and determinable price, and
that it be legally binding during life and at death.
Section 2703 Requirements
Respondent further argues that, even if it is conceded that
the 1995 FSA created enforceable buy/sell options establishing a
price that bound decedent, the 1995 FSA is nonetheless
disregarded for Federal estate tax purposes under section
2703(a), because it fails to satisfy the requirements of section
2703(b) for exempting a restrictive agreement from the
"disregard" rule of section 2703(a). The estate contends that
all requirements of section 2703(b) have been satisfied, and we
agree.
Section 2703(b) provides that a restrictive option or
agreement will not be disregarded under section 2703(a) if it
meets each of the following requirements:
SEC. 2703(b). Exceptions.-- * * *
23 Respondent also argues that decedent was not bound by the
1995 FSA because she received no consideration for entering it.
We think the consideration received by decedent is patent;
namely, a fixed price for the FABG stock that was otherwise
contingent upon further negotiations and/or litigation with FABG.
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