35
In light of the fact that five members of Paul Brown's
family paid $1,556,000 to Sawyer in 1993, respondent concedes
that Sawyer received arm's-length consideration for some of the
Bengals stock. Thus, respondent concedes that only 312 shares
are included in Paul Brown's estate under section 2036. Our
analysis is not affected by whether respondent contends that
Brown's estate includes 312 or 329 shares of Bengals stock.
Petitioner contends that Paul Brown's estate does not
include any of the 329 shares of Bengals stock sold pursuant to
the 1983 agreement between Brown and Sawyer. Petitioner contends
that the 1983 agreement was a bona fide, arm's-length agreement,
the substance of which is the same as its form. Petitioner
contends that section 2036 does not apply to the 117 shares of
stock Paul Brown sold to Sawyer because Sawyer paid full
consideration for it, or to Sawyer's 212 shares of Bengals stock
because Paul Brown did not transfer or retain a life interest in
it.
B. Section 2036 -- Background
A decedent's gross estate includes the value of an interest
in property that the decedent transferred for less than adequate
and full consideration and in which the decedent retained for
life the right to (or to designate a person or persons to)
possess or enjoy the income. Sec. 2036(a).6 Section 2036(a)
6 Sec. 2036 provides as follows:
(continued...)
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