By Kathleen Ford Bay, Esq.
Richards Rodriguez & Skeith LLP, Austin, TX
In Michael R .Levy, Exr. Estate of Meyer Levy v. U.S., 402 Fed. Appx. 979 (5th Cir. 2010) (09-51082, slip copy), aff'g 2008 WL 5504695 (W.D. Tex. 2008), a federal district court confirmed by the Fifth Circuit allowed the jury to consider and rely on a sale after death, a sale not in the works before death, and negotiated solely after death. The jury verdict valued the property at $25 million and did not allow any discount for lack of control and marketability. The Fifth Circuit stated that the admissibility of comparable sales is within the peculiar discretion of the trial judge and noted that a trial court did not abuse its discretion when admitting evidence about a sale three and a half years after the original valuation date. Jayson v. U.S., 294 F.2d 808, 810 (5th Cir. 1961). The Fifth Circuit also determined that the record supported the jury's denial of discounts for lack of control or marketability. The Estate (and, while alive, the decedent) controlled the general partnership interest and had nearly unfettered control over partnership assets. (In a footnote, the Fifth Circuit noted that in taxing the estate, a 30% discount had been applied.) The U.S. Supreme Court has denied certiorari to review the decision: cert. denied, 2011 AWL 1481312 (May 23, 2011).
For more information, in the Tax Management Portfolios, see Mezzullo, 812 T.M., Family Limited Partnerships and Limited Liability Companies, and Hood, 830 T.M., Valuation: General and Real Estate, and in Tax Practice Series, see ¶6290, Valuation Generally.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)