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IN RE ESTATE
IN THE COURT OF COMMON PLEAS
OF
CUMBERLAND COUNTY, PENNSYLVANIA
GRACE E. HEMPT
ORPHANS' COURT DIVISION
DECEASED
No. 21-78-fll63
ORDER OF COURT
AND NOW, to wit, this )..3....... day Of~' 1981,
in consideration of the foregoing Stipulation, it is hereby
ORDERED AND DIRECTED that the appraised value of the 6,000
shares of C. A. Hempt Estates, Inc., as determined by the
Department of Revenue Board of Appeals, is reduced from
$191,820 or $31.97 per share to $131,880 or $21.98 per share
and the inheritance tax shall be reassessed in accordance
with this Order.
BY THE COURT
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BOOK 108 PAct 632
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".
IN RE ESTATE
IN THE COURT OF COMMON PLEAS
OF
CUMBERLAND COUNTY, PENNSYLVANIA
GRACE E. HEMP'r
ORPHANS' COURT DIVISION
DECEASED
21-78-683
STIPULATION
AND NOW, Dorothy L. Keeney, Assistant Counsel, Counsel
for the Department of Revenue, and William Fearen, Esquire,
Counsel for the Estate of Grace E. Hempt, hereby make the
following stipulation:
1. Grace E. Hempt died on December 8, 1978, a resident
of York County.
2. On or about September 6, 1979, Robert H. Kalbock,
Executor, filed the Inheritance Tax Return for the estate with
the Register of Wills of Cumberland County.
3. The assets of the estate included 6,000 shares of
common stock of C. A. Hempt Estate, Inc. This represents one-
fourth of the shares outstanding, all of which are owned by
Hempt family members.
4. On October 12, 1979, the Executor filed with the
Inheritance Tax Division, Department of Revenue, Commonwealth
of Pennsylvania, a Closely Held Corporate Stock Information
Report showing a $15.92 per share value for the 6,000 shares
held by the decedent, for a total of $95,520.00.
BOOK l6S PACE 629
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5. On July 3, 1980, the appraiser for the Department
of Revenue filed an appraisement increasing the value to $38.55
per share, for a total of $231,314.49, based on a valuation of
$42.83 per share minus a 10% discount for minority interest and
lack of marketability.
6. On or about November 10, 1980, the United States
Internal Revenue Services appraised the 6,000 shares at $19.98
per share based on a valuation of $39.96 per share minus a 50%
discount for minority interest and lack of marketability.
7. On August 29, 1980, the Executor filed a protest with
the Commonwealth Department of Revenue Board of Appeals. On
May 21, 1981, the Board of Appeals adjusted the value of the
shares to $31.97 per share for a total of $191,820 based on
the Internal Revenue Service valuation of $39.96 per share
minus a 20% for minority interest and lack of marketability.
8. On or about July 7, 1981, the Executor filed an
Appeal with the Court contesting the valuation as set by the
Board of Appeals.
9. Counsel for the respective parties have discussed the
value of the stock, the effect of the restriction of sales to
family members, and the minority interest of the decedent's
holding. As a result of those discussions and in order to
settle this matter without litigation, it is hereby agreed
that the value of the stock should be $21.98 per share for a
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BOOK 108 PAGE 630
total value of $131,880 for the 6,000 shares held by the
decedent.
10. Counsel respectfully request that the Court issue the
attached order reducing the appraised value of the 6,000 shares
of C. A. Hempt Estate, Inc. stock from $191,820 to $131,880.
11. Upon issuance of the Order of Court the Department of
Revenue will instruct the Register of Wills to amend the inheri-
tance tax records to conform with the Order.
iJ~x ~~ 1111n
Dorothy . Keeney
Assistant Counsel
Counsel for Department of Revenue
~~~
llllam Fearen, Esqulre ~
Counsel for Estate of Grace E. ~mpt
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BOOK 108 PACE 631