Lavonna J. Stinson Estate v. United States

TERENCE T. EVANS, Circuit Judge.

Lavonna Stinson owned valuable farmland in Fulton County, Indiana. In June 1981 she and her five children and two grandchildren incorporated as Stinsons, Inc. Ms. Stinson then sold 267 acres of farmland to the corporation for $398,728 to be paid in monthly payments of $2,856.62 over 20 years. The children and grandchildren exchanged their interest in 160 acres of farmland for 600 shares of Stin-sons’ stock — 100 to each child and 50 to each grandchild. The board of directors consisted of all seven shareholders and Ms. Stinson, who never was a shareholder but…