The Alice Brittain Estate, valued at $14.8 million, includes the following assets: A joint and last survivor
Question:
The Alice Brittain Estate, valued at $14.8 million, includes the following assets: A joint and last survivor annuity that pays Alice $5,000 monthly; the surviving annuitant, her sister, Joan, would receive a survivorship annuity amount of $3,500 monthly A solely owned tree nursery business located on 1,000 acres in a rapidly developing urban fringe area in the state of Washington; the nursery and the business-related land are valued at $8 million (the land alone is valued at $4 million); Alice has worked actively in the business during the past 20 years; the nursery property and business are given to her son by her will 50,000 shares of publicly traded stock, valued at $3 million; there is a total of 50 million outstanding shares, with an average daily trading volume of 2 million shares When Alice dies, the valuation technique that would be appropriate to reduce the value of her gross estate.
A) the alternate valuation date for the annuity.
B) a blockage discount on the publicly held stock.
C) a special use valuation on the family nursery.
D) a minority discount on the tree nursery business.
Retail Management A Strategic Approach
ISBN: 978-0132720823
12th edition
Authors: Barry R. Berman, Joel R. Evans