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FSA are comparable to similar arrangements that would have been
entered at arm's length. The value of the FACC option was less
clear in 1995, and the conservator (as decedent's fiduciary) and
the prospective heirs other than Rod preferred to secure an
agreement in 1995 rather than risk a protracted dispute with
FABG, for the reasons previously discussed.
Finally, FABG's purchase of the FABG stock from the Rod
Amlie Family pursuant to the 1997 Rod Amlie Family Agreement was
conditioned upon the sale by Rod's wife Sally of certain other
FABG stock that she owned in her own right, suggesting that the
1997 price was also affected by FABG's desire to obtain
additional stock in the hands of another minority holder.
Conclusion
We accordingly find on this record that the estate has shown
that the requirements of section 2703(b) are satisfied, so that
section 2703(a) does not provide a basis for disregarding the
1995 FSA. As a consequence, we conclude that the value of
decedent's FABG stock as of the alternative valuation date was
limited as a result of the 1995 FSA to $993,757, the value
reported by the estate.
III. Fair Market Value of Farm Land
Background
The estate reported values for decedent's farm land based on
an appraisal by an auctioneer. Respondent determined
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