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had fixed repayment dates.4 Beth W. Corp. had made no demand for
payment on the demand notes when decedent died. There are 14
signed promissory notes in evidence as follows:
Interest
Date Amount Rate Due Date Paid
Jun. 1, 1984 $760,000 10.5 May 31, 1989 No*
Sep. 1, 1984 12,000 12.0 Aug. 31, 1989 Yes
Oct. 1, 1984 14,000 12.0 Sep. 30, 1989 Yes
Jan. 1, 1985 21,000 12.0 Dec. 31, 1990 Yes
May 1, 1985 32,000 12.0 Apr. 30, 1990 Yes
Jul. 1, 1985 24,000 12.0 Jul. 30, 1990 Yes
Jul. 5, 1985 77,245 12.0 Jul. 5, 1993 No
Aug. 1, 1985 26,000 11.0 Jul. 31, 1990 No
Aug. 1, 1985 218,000 12.0 Jul. 31, 1990 No
Mar. 1, 1986 12,000 8.5 Mar. 1, 1989 No*
May 1, 1986 10,000 8.0 May 1, 1989 No*
Jun. 1, 1986 10,000 8.0 Jun. 1, 1989 No*
Jul. 1, 1986 10,000 8.5 Jul. 1, 1989 No*
Aug. 1, 1986 14,000 8.5 Aug. 1, 1989 No*
Total $1,240,245
Six of these notes (marked with "*") totaling $816,000, were
past due when decedent died. Petitioner had paid only $103,000
of the $1,240,245 of notes in evidence that were due when she
died. Decedent repaid some principal by forgoing receipt of some
redemptions and dividends owed to her by Beth W. Corp. Beth W.
Corp.'s books and records showed that had happened.
Decedent told her granddaughter, Pollett, that she intended
to repay the transfers (which decedent consistently referred to
as loans). J. Marvin Smith (Smith), the trust administrator for
First Union, executor and fiduciary to decedent's estate,
believed that the transfers were loans to decedent from Beth W.
4Petitioner did not offer any demand notes into evidence.
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