Estate of Georgina T. Gimbel, Deceased, Janet G. Rogers, JoAnne M. Gimbel, and Thomas W. Gimbel, Co-Executors and Co-Trustees - Page 15

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               For Federal estate tax purposes, the term “fair market                 
          value” is defined as the price at which property would change               
          hands between a willing buyer and a willing seller, neither being           
          under any compulsion to buy or sell and both having reasonable              
          knowledge of relevant facts.  United States v. Cartwright, 411              
          U.S. 546, 551 (1973); sec. 20.2031-1(b), Estate Tax Regs.                   
               The willing buyer and the willing seller are hypothetical              
          persons, rather than specific individuals or entities, and                  
          individual characteristics of the hypothetical persons or                   
          entities are not necessarily the same as the characteristics of             
          the eventual actual seller or actual buyer.  Estate of Simplot v.           
          Commissioner, 249 F.3d 1191, 1195 (9th Cir. 2001), revg. 112 T.C.           
          130 (1999); Estate of Mellinger v. Commissioner, 112 T.C. 26, 33            
               For shares of publicly traded stock, the average of the                
          highest and lowest quoted selling prices on the valuation date              
          generally establishes the value of the shares.  Section 20.2031-            
          2(b)(1), Estate Tax Regs.  However, if a taxpayer establishes               
          that the quoted selling prices do not reflect the fair market               
          value of the shares, then some reasonable modification of the               
          selling price and other relevant facts and elements of value may            
          be considered in determining the fair market value.  Estate of              
          Gilford v. Commissioner, 88 T.C. 38, 48 (1987); sec. 20.2031-               
          2(e), Estate Tax Regs.  For example, sale restrictions on shares            

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