Estate of Virginia A. Bigelow, Deceased, Franklin T. Bigelow, Jr., Executor - Page 2
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US Tax Court > 2005 > Estate of Virginia A. Bigelow, Deceased, Franklin T. Bigelow, Jr., Executor - Page 2
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1993. Decedent’s trust and decedent’s children formed a family
limited partnership in 1994 when decedent was about age 85 and a
few months after she suffered a stroke and began living in an
assisted-living facility. Decedent’s trust transferred the real
property, but not the liability for a loan and a line of credit
totaling $450,000 which were secured by the property, to the
partnership. After the transfer, decedent was left with an
insufficient amount of income to meet her living expenses or to
satisfy her liability for the indebtedness. Decedent’s sole
purposes in establishing the family limited partnership were to
facilitate gift giving and to reduce Federal estate tax.
The issue for decision is whether the real property that
decedent’s trust transferred to the partnership is included in
decedent’s gross estate under section 2036(a)(1). We hold that
Unless otherwise specified, section references are to the
Internal Revenue Code in effect for the time of decedent’s death
in 1997, and Rule references are to the Tax Court Rules of
Practice and Procedure.
1 In an amendment to the answer, respondent asserted that
the property is also includable in decedent’s estate under secs.
2036(a)(2) and 2038(a)(1). Because we hold that the property
transferred to the partnership is included in decedent’s estate
under sec. 2036(a)(1), we need not decide whether the property is
included in decedent’s estate under sec. 2036(a)(2) or sec. 2038.
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