§11602

in determining value. See Estate of Weil v. Commissioner, 22 T.C. 1267, 1274 (1954); sec. 20.2031-2(h), Estate Tax Regs. Section 2703, enacted in 1990, also governs restrictive agreements. Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11602, 104 Stat. 1388-491. The general rule of section 2703 is that any agreement to acquire property at less than its fair market value will be disregarded for Federal estate tax purposes unless the agreement satisfies the requirements enumerate

g to the valuation of property subject to options, is not applicable to an agreement entered into before Oct. 9, 1990, unless there has been substantial modification since Oct. 8, 1990. See Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11602(e)(1) (A)(ii) (I), 104 Stat. 1388-500. The options in issue were executed before Oct. 9, 1990, and were not substantially modified thereafter. convey decedent's interest to his son for less than full and adequate consideration, and therefo

ity, Example 5 does not expressly contradict any statutory language. Accordingly, we focus on the statute's origin and purpose for further guidance. Section 2702 was enacted as part of the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11602, 104 Stat. 1388-491. Legislative history¹ describes the aims which prompted the measure: the committee is concerned about the undervaluation of gifts valued pursuant to Treasury tables. Based on average rates of return and life expectancy,

by the parties. We note that neither party contends that the special valuation rules of sections 2701 through 2704 apply to the decedent's transfer that is the subject of these cases. See Omnibus Budget Reconciliation Act of 1990, Pub. L. 101- 508, sec. 11602(a), 104 Stat. 1388-491. Petitioner argues that by exchanging his voting common stock in HBC for class B nonvoting common stock, the only thing the decedent gave up in the recapitalization was the right to vote his 402.5 shares of stock in

by the parties. We note that neither party contends that the special valuation rules of sections 2701 through 2704 apply to the decedent's transfer that is the subject of these cases. See Omnibus Budget Reconciliation Act of 1990, Pub. L. 101- 508, sec. 11602(a), 104 Stat. 1388-491. Petitioner argues that by exchanging his voting common stock in HBC for class B nonvoting common stock, the only thing the decedent gave up in the recapitalization was the right to vote his 402.5 shares of stock in H

ent, or right), or (2) any restriction on the right to sell or use such property. Section 2703 applies to any right or restriction created or “substantially modified” after October 8, 1990. Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11602(e)(1)(A)(ii), 104 Stat. 1388, 1388-500. Because the executors elected alternate valuation, as provided for in section 2032, we assume that decedent’s shares were valued for estate tax purposes as of January 28, 1991. Respondent argues that

1989).6 We also find that the executrix is mistaken in her reliance on the legislative history of section 2701, which was added to the Internal Revenue Code by section 11602(a) of the Omnibus Budget Reconciliation Act of 1990, Pub.

We also find that the executrix is mistaken in her reliance on the legislative history of section 2701, which was added to the Internal Revenue Code by section 11602(a) of the Omnibus Budget Reconciliation Act of 1990, Pub.