HomeMy WebLinkAbout05-27-81
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June 1, 1981
Mr. Knovel F. Lamberti
District Administrator
Harrishurq District Office
1846 Brookwood Street
Harrisburg, PA 17128
Dear Mr. Lamberti:
Re: Estate of Grace E. Hempt
File Number 21-78-0683
County of Cumberland
Date of Death: December 8, 1978
Enclosed you will find a copy of a Protest and Decision
of the Board of Appeals concerning the estate of the above-named
decedent.
The Board of Appeals sustained-in-part, the Petitioner's
objection. Accordingly, you are aut.horized to amend the record of
this estat.e to conform with the Order of the Board.
Very truly yours,
John C. Murphy
Supervisor
Special Processing
Enclosure
CC 1 Ms. Mary C. Lewis
Register of Wills
....." "'.
.,',.'.
REV-383C (7-791
COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF REVENUE
BOARD OF APPEALS
P.o. BOX 1874
HARRISBURG. PENNSYLVANIA 17105
.It~ nJl ~a'1'A-nop.
.
!Soard Docket No. 0123'. 1ft
(.r4\c. %.. f".~
.
Fil. ~. 21-'9-0."
P!'flTxo>>:en.
.
COunty ot c..herlan4
~c>~rt. a. Kalha(:l'h
.
n.ta of neat.b. 1.2"'0,..7$
I oat. of App...i.....;: t 1)'-0'-80
. tlate ;trottnJt PU... 08-2t-80
JitD)~Sllt~'S.;\\~tIVl'h
. ba-lnltn ~ I... \Ie"..
itilU.... "Olllran, lt~.
Cle.,Iil.l4tr ."~""rfm
J 1 No):"d" flfte<m4 lu..t
Harr&.hut9, '1 11101
.
~c1.1on Mallia! nat..
MAY 2 7 ~981
FIlC'l'S
1. hU.t.tonar. ~~rt n. .alb..b. 1.. ..ac.tor for the htat. Qt
Gr~c. F.. ~"p~, t11e AU_bel' ll-1m-Ofe,.
2.. The dea...$d <Usd em D.o.~l' ~, 10)18. An %8berJ.tan.. fta.
r.t\ll'n we. tU~ vlt.h t.he ~p.rt'''Mu~,* aM an "~r.U\....t _. f.t.l.~ 1ft
~h. O(fLce of the ~q1.t.r of will. .f eu.~rl&nd COUnty ~ Jul, !,
19ftO. Thh app:rah__nt; r.t1..ot.d t.he f,,11owlI'l9 .alu't1.on8'
,
Jl.eal ~~"t't'.,.
'otoonat 9rop.r~y
1'ranfliffll'.
Jo1ft~ly Ow~~ P~l~rty
'rat.. 1
$UO,oeo.oo
303,802.83
-0-
-0-
J44J,"02~83
3. PeU.tion4t,l". p$"o1:.." concerr... t;.~. f,ItJpartl!llent:'a ".1_at1on $f
a,n06 ahAr.. of c. A. n.~r~ ~.tat., Inc., otock owned D1 tho decedent
A,"] r.rot't'.~~ .!! 11:."- No. :l on. t;.~. ~h.ma:l. f>f h'rlSonal Property.
4. An a~t.:nlstf".t:l" h"'^rinq co~d\tot;"d ,..y TheM. 1.. ..k>1\". OD.
".bruet]" 3, HHn, ln ~j.rrlHblitl'l1' ht\'lI'Hlylvanh, "'.. att.nde4 by ~bertl 8.
.v<fllb.ch, $.il!.c~ter for the }';l6It.te t)' "rAC. ~. fj..pt. A1\ti't ~tl11.1n 1'..1'012,
JUttl.llre.
~------~_._~'-_._--~-~'._------,---~..
"'k ...~ "
,
Ga-a.,. I. _apt
Board Docket No. 012364 l~ft
s. 1be wideftce ...bIlittAd by Pet.it-ioaer OOfleiet.e4 of ttt.
to11",,1119'
a. Teet.l..-,. by' Roben 8. ....lbaclh
b. IIlt.ena1 fte,",mM 8e....1c. HjutMat notice,
1nela411l9 ooa,.tat1on of 981uat.ion of 6,000
ahal".. of C. A. !leapt. E~t., Ino. (per Abua
ya1ua of $19.98).
Ch Copy of C. A. ... ht.at.., lac. &ppra"'a1
e.t.ab1iablnQ valu. of $.55,000,00 .. of
Marcb 19, 19'''. AppI.-a1eal ba... \IpoIl ...-
!:i1u~loft of iJ\C'011le ud M.Z'k.t appro.....
d. Letter by ~l'e1.ar inoorporet.lav a 1....
renewal .ffect1.. nbeeqwallt. to MilI'eh 19,
1977 awraiu1 W't pdor to deaaa.. of
On. B. tferIlI* and &'84aeiaq aWl'alH4 _1_
by '63,000.00.
e. C. A. ~ ..at.e, lac., a<KlOUDt:aa't'. nport,
o.oeaber 31, 1977 .
t. C. A. ae.pt. ltR.ta, Inc., acco\1.DUftt.t. nport.,
Dec.~r 31, 1976.
9. Affida.it. by Fre.ericlt M. "'e1aan to the
.ftNt. that Iobart. H. ..tbach aa4 .. e. ~
ar. cH.net bu81ae.. OOIaptIU tor. 84 1:bat be hu
obM.....4 . 8t.rft9 ..1ua.-orl."ta. ....lUt.,.
~""Jl Max C. ~ .d 1'teben B. ....lbacth.
h. Aff14..1t by R1char4 R. tePa..r, I:tIqv.1n t:o th.
.ttect. that. the a4,000 ow.t.taft4J.ru, ahar.. of
C. A. Neapt. ..ata, lac. ue owned .. loll.....
(1) 6,000 .bare. - Robart H. bU.ach, Ix-.t.ol'
of the ..tat.. of orace Z. Beap't.
(2) 4,000 .bar.. - '1'M B.at.. of J. 'I. 1I.-pt.
a,.4 bald by . t:r\uIt cr.atle" ia the .."at.
ot which Mex c. HeIapt. 1s th. ..141 t.net:...
(3) 6,000 aha.... - The lrata.. of Loy T. MeWlpt
and. held by a Uuft Cl'HtH 1ft ~e "Uti. of
which Max c. _~ 18 a t.ru..t.., 'th. oC:ber
tl'Wtt... being Mal'CJ&l'et Beap't, 'tb. wic50w of
Ley '1". e.apt.
k_________
-
-
-2-
~
-
-- -.-----,.,.------ \....-._-~.. JIII'"""-----;y- ~--- -____----.......-
...,.
., .
Orace M. lte.:Pt
8oar4 Docket Mo. 012364 INH
-3-
(4) 2,000 .har.. - Max C. S..pt
(5) 2,000 ahar.. Dol'o\:hy n_pt Hark, .1e~er
of Max c. !se.~.
(6) 2,000 eha~ea - ..""n D. If'8lllpt, M inCOMpe-
tent. .
i. Copy of lett.er datefl "nly 29, 1980, 11'011I John M.
Byerly, AMistant heretary, c. A. ~t E.tat.e,
Inc., sUting that no dlvtderu.'le hA.. been paid
by ~. eorporat1cm to and lnolud1J\9t:.he year
1978 and that ..c.~ for a $1,000.00 mana~nt
fee l'eCei..t! by John M. n,.erly, there are no
paid ctUeer..
j. Copy of 1.... for the Dauphin t:lIItpoai t Tluat.
COIapllny property.
DISCUSSION
Petitioner, 1n this prote.t., contends ~\.t the valuation plaoed
upon the 6, 000 .l,.~. of c. A. aeapt 7.:8tat., tne. IIt:oclc owned by the
deca4ent 1. oyerstat.d. Petitioner request. that the value of .15.92
~r ehare fUll reported Oft the inheritance tax return be aeoepted .. tho
correct value.
In the altern.th'., Petitioner requeet.a t.hIIt. the valuation
establ10hed by the Internal NeveDue SOrv1ce on tho 8her.. of Rock be
util1..d by the t>epart....",t. ($19.98 per share).
Petitioner ba... thi. requ..t tor a roduct.ion 1ft the value on ~b.
tol1t'Nlnq.
.. "the 41,000 ahare. owned by t.he decedent. repre-
..nt a ninority inter.at 1n .. olosely-held
corpOrat.ion whioh haw, by decadent.'. death.
pa..ecs t.o aft iftdi"idt,lAl who U 1n dtnct.
built...... COIapet.1titm w1t:hMax c. HeIIIlp't, 'Who
either own. or cont.rol. by a tru.t relation-
ship, qoardianahip, or clo.. r..lly ti8, the
rOlaa1nlaq t8,OOO sharee of CQrJ',)Orate .toek.
'~.
-~
Grace E. SI4nIpt:
moa~d f)OCket. MO. 012364 IN~
-4-
b. The stook I!lllY only bta 91v.", or eold to .
dftoendent of C. A. H..pt..
c. The nature ot ~~. corpo~fttion'. bqalne.. haD
be4U'.l low urnin" par ahaI'. of stock, ab..nce
of d1.J.dend., aad low rat., 10n9 ten 1.....
wnder which th.income of the corporation 1.
earned.
d. Tho individual '~ntrol11n9 the majority inter.at
wJ..:h.. to _int.a1n a lov level of _1'111098.
Initially, the Board not.. that t.he eatate valuation tor the .har..
of stook ..,ft. ba.e4 upon the etoekho1de:u' equity aa of December 31, 1978,
reduced by 20 peroent to reflect a minor1ty int.rest and lack of mark.t-
abUity. l"unh.nIOr., the Oel1'<l'rtl'lMmt.' s ..1uaU.Oft of $38.5525 "'1' tlhan
"a. baeed upon the net. ....t v.luation of the corporat.ion on D4to.",ber 31,
1976, dJ.acounted LO perClent: for minor-ity inter..t and 1.aQk of INl.rket-
ability.
In its ~90tl.t.ion. with tho Internal Revenue Se~ice, the Pet!-
tioner utl1iaed an appraisal of the corporation a. of March 19, 1977.
Thin apprai..l wan doft8 1n oonjunct.ion with t.he valuation of the oorpora-
t10n for the ..tat.. of Loy ~. H..pt. Thi. apprai..l va. ba..d upon
. co.blnat10n of lnc~ and ..rket approach.. and we. reduced from
'955,000.00 to $792,000.00 .. the valu. Oft Deo.~r 8, 1915. ~i.
rRllct.1on .. ba..('J upon an autoru.t.1e reneWAl of . tW4U\tY""Y..r 1....
effect.i.. unt.11 October 1, 19t8 at A rat. ..tabU.~d on Oct.ober 1,
1958.
-----------
--
- -~~ ~--- ....-------~
......---. """"F'---------.....- ---- -- -.-......- --_._- -- ___ -- __ ~. -- __
......-.-- -- -------.. -.....---- ~.,---~-
. ,.. '..
.. ..,.....
Or"c. le. Uempt.
Board Docket No. 012364 INH
-5-
saeed upon the adjusted appraisal and add1tlanftl depreciation tor
..... the t.t.. pedod from March 19, 1971 to tho dat.o of c50at.h, the lAternal
Revenue Servioe dttt.endne<t tbo adjwatod book ",alue ot tho corporation'.
stock to be $959,186.79 or a per ..hare ...1ue of $ 39. H.
lfavlnq rev1ewe(l tM abo"e, the Board ha. det.endned that. the .alu.
of $39.96 per aharo, .. detond..nod by tho Intel'Ml Me'Yenue Sttnloa, 18
DOS' repre.onta'!.. of the gross valuation of the ~ock. Furthermore,
the Brnlrd h.. det.aralne.{t that the minQrity lnt.ere.t. ..4 t.he lack of
aarketab11ity warrant ft dLacount. ot 20 percent. This r.eult.. in a per
ahare ..lWlt1on to the ..tate of $31.97 end a tail' 1lIA.l'ket value of t.he
decedent 'a f),aOo .harea of C. A. SMpt. Eat-ate, Inc. atock on Oecellll"'r 0,
1978 of $191,820.00.
ORDER or 'rJU BO.\\RD
Aocordln91y, it 1s hereby, Ordered that t.be prote.t 1. wuat.ained-
in-part.
The ~al\'le of deeedent.'. 6,000 ahar.s of C.A. n_pt. ~.t., Inc.
.toek rfllported a. Itee HO.2 O~ the Schedule of Personal Property be
a1jueted to $191,920.00.
R Y 'l'KI OOA1tO OF APPSAl.S
Haok F. Johnson, CbairlM.J\
kAt.hl..n c. 0II1er, taw Merabor
T1A'1Othy J. l>iorney, MeIilber
859.126....130
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