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To: carranza2 who wrote (128611)5/5/2003 12:07:04 PM
From: Stock Farmer  Read Replies (2) | Respond to of 152472
 
Selling for estate planning purposes is... um... interesting.

Assuming the estate planners have their act together, it means that whatever is left after estate taxes on the after-tax proceeds of the equity (disposed today) is expected to be less than the after-estate-tax proceeds on the equity itself (inherited later).

Juggling combinations of tax rates, it means the Jacobs Estate is expecting after-estate-tax proceeds on the equity itself as it appreciates over Jacob's actuarial life expectancy to be less, in current dollars, than the after-tax proceeds of disposition now, subject to estate tax later.

Or in other words, that the stock is not likely to appreciate significantly over the remainder of Jacobs' actuarial life expectancy.

So an "estate planning" reason, when boiled down to alternatives, suggests less bullishness by the Jacobs estate than most who post here.

John