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$225,800. The consideration received by the McReadys is outside
of that distribution. In other words, the deeding of Western in
1990, 6 years before decedent’s death, was outside of the equal
division of the probate estate. Upon the death of decedent, Mrs.
McReady became the sole owner of Western.
Although respondent questions whether the facts in the
record support the ultimate conclusion that there was an
agreement and that consideration was exchanged, the credible and
uncontradicted testimony of witnesses and corroborating evidence
in the record support the existence of the agreement and the
exchange of consideration between the parties.
Having decided that there were an agreement and the exchange
of consideration, we must now decide the amount of “adequate and
full” consideration given by the McReadys in exchange for an
interest in Western.5 The estate contends that there are two
types of the consideration exchanged for Bradley--the rental
5 We observe that the original agreement between the
McReadys and decedent was to deed full fee ownership to the
McReadys. On account of Mr. McReady’s concerns about ownership
of assets in his name because of pending unrelated litigation,
the deeding of Western was delayed until 1990, and, ultimately,
only an undivided one-half interest was deeded to Mrs. McReady.
In part, decedent remained a joint owner of Western to take
advantage of real property tax benefits. Although these
variations from the agreement may have some legal implications,
neither party has focused on this aspect. Perhaps the fact that
only one-half the fair market value of Western was excluded from
the gross estate has mooted any question about this aspect.
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