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American College Exam HS330 Topic 2 Question 96 Discussion

Actual exam question for American College's HS330 exam
Question #: 96
Topic #: 2
[All HS330 Questions]

Generally the courts will accept as the federal estate tax value of a closely held corporate business the price established by a buy-sell agreement if all the following conditions are met EXCEPT:

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Suggested Answer: A

by Pearlie at Sep 09, 2024, 01:13 PM

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Benton
4 months ago
Option A is the right answer, no doubt. Although, I'm sure there's a lawyer out there who could argue the other way and still get paid. Gotta love the legal system!
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Marti
4 months ago
The legal system can be so tricky sometimes, but that's why lawyers are there to help.
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Ilene
4 months ago
Lawyers always find a way to argue things, that's for sure.
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Cecil
4 months ago
I agree, option A is definitely the right answer.
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Tran
4 months ago
That makes sense, I see your point.
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Nguyet
5 months ago
I think the answer is D because it goes against the fair and arm's length requirement.
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Ressie
5 months ago
But doesn't the agreement requiring the payment of liquidated damages to survivors make it invalid?
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Irene
5 months ago
Honestly, I'm just impressed that anyone can keep track of all these legal technicalities. Where do they even come up with this stuff?
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Maia
4 months ago
Yeah, it's a good idea to consult with a professional to make sure everything is in order.
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Argelia
4 months ago
I know, it can be overwhelming trying to understand all the legal details.
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Weldon
4 months ago
It's definitely a lot to keep track of, but it's important for estate planning.
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Tran
5 months ago
I disagree, I believe the answer is C.
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Mel
5 months ago
Hah, option D is the best. Gotta love those shareholders who try to get out of the agreement by selling their stock during their lifetime. Nice try, but the courts aren't buying it!
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Wei
3 months ago
Agreed, the courts will see right through that.
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Hortencia
3 months ago
Definitely, can't have shareholders trying to sneak out of their agreements.
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Teddy
4 months ago
Yeah, it's important to have those safeguards in place.
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Lilli
4 months ago
I know right, option D really covers all the bases.
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Willard
5 months ago
I don't know, I think option B is the way to go. If the agreement is fair and at arm's length, that should be the key factor, right?
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Clemencia
4 months ago
Chun: I think they are important too, but option B is definitely a key factor.
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Rozella
5 months ago
But what about the other conditions? Do you think they are also necessary?
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Chun
5 months ago
Yeah, if the per-share value is fair and at arm's length, it should be accepted by the courts.
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Gail
5 months ago
I agree, option B seems like the most important condition.
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Tennie
6 months ago
Option A is clearly the correct answer. Why would the courts accept a buy-sell agreement that penalizes the executor for not following it? Seems like a no-brainer to me.
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Coleen
5 months ago
Yeah, it wouldn't make sense for the courts to accept a buy-sell agreement with liquidated damages.
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Troy
5 months ago
I agree, option A is the correct answer.
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Ressie
6 months ago
I think the answer is A.
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