Herbert V. Kohler, Jr., et al. - Page 20

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               Respondent then sought to amend respondent’s answer after              
          the deadline for motions with respect to the pleadings to assert            
          that the proper valuation date was the date of Frederic’s death,            
          rather than the alternate valuation date.  We denied respondent’s           
          motion to amend his answer due to the substantial disadvantage              
          and prejudice to petitioners if respondent amended his answer at            
          such a late date.  We accordingly shall not consider respondent’s           
          renewed arguments that the stock should be valued on the date of            
          Frederic’s death, rather than the alternate valuation date.                 
               B.   Stock To Be Valued                                                
               Respondent renews two arguments he made in his motion for              
          partial summary judgment regarding the stock to be valued.  He              
          argues that we should value the pre-reorganization stock on the             
          alternate valuation date, or, alternatively, that we should                 
          ignore the transfer restrictions and the purchase option in                 
          valuing the post-reorganization stock.  Although these issues are           
          now ripe for decision, we reject both respondent’s arguments.               
                    1.   General Rules on Valuation Date                              
               Section 2032 allows the executor of an estate to choose to             
          value the estate’s property at a time after the date of death.              
          Sec. 2032(a).  If an executor chooses this option, property                 
          “distributed, sold, exchanged, or otherwise disposed of” within 6           
          months after the decedent’s death is valued as of the date of the           
          distribution, sale, exchange, or other disposition.  Sec.                   






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