Jack passed away and his stock is held by his estate. Jack's wife, Betty, is the sole beneficiary of the estate. Jack's estate holds 50 shares of Short Enterprises, Inc. The other 50 shares are held by Jack and Betty's daughter, Patty. Short Enterprises would like to redeem the 50 shares held by Jack's estate. Betty and Patty are also in agreement with this plan.

What would be the tax consequences if Short Enterprises redeemed the 50 shares held by Jack's estate or is there a better way for the estate's stock to be redeemed? Assume that Patty does not want her stock to be redeemed.