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The parties have stipulated that the price at which the
partnership interest was conveyed to the Meek trust was adequate.
Other than the above-described transactions, petitioners did
not convey, by gift or otherwise, any property or interest in
property to the trust during 1991.
Section 267(a)(1) provides in part: "No deduction shall be
allowed in respect of any loss from the sale or exchange of
property, directly or indirectly, between persons specified in
any of the paragraphs of subsection (b)."
Section 267(b) enumerates certain relationships, including
that between a grantor and a fiduciary of a trust. Sec.
267(b)(4). The person who creates the trust is the settlor, or
grantor,2 of a trust. Restatement, Trusts 2d, sec. 3 (1959);
I Scott, Trusts, sec. 3 (4th ed. 1987).
Petitioners and respondent agree that the trust was created
on December 11, 1991. They further agree that the partnership
interest was held in trust for the benefit of Meek's
grandchildren and that McCormick and Furman were the trustees of
the trust. As trustees, they are fiduciaries under section
7701(a)(6). The issue before us is only whether Meek is the
settlor of the trust.
2 The terms grantor, as used in sec. 267, and settlor, as used
in the trust document, both refer to the creator of a trust. See
Black's Law Dictionary at 700, 1373 (6th ed. 1990). We view them
as synonymous.
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