-48-
321, 323-324 (1974); Rude v. Commissioner, 48 T.C. 165, 173
(1967); Clark v. Commissioner, 18 T.C. 780, 783 (1952), affd. 205
F.2d 353 (2d Cir. 1953). The factors are not exclusive, and no
one factor controls. Rather, our evaluation of the various
factors provides us with an evidential basis upon which we make
our ultimate factual determination of whether a bona fide
indebtedness existed. See Estate of Maxwell v. Commissioner,
supra at 604; Litton Bus. Sys., Inc. v. Commissioner, supra.
With the foregoing factors in mind, we turn to the facts and
circumstances surrounding the transfers at issue to determine
whether at the time of each transfer decedent entered into a bona
fide creditor-debtor relationship with the JKH Trust.
1. Promissory Note or Other Evidence of Indebtedness With
Respect to the Transfers at Issue.
Decedent never signed any promissory notes with respect to
the transfers at issue. While it is true that decedent never
executed a note or other singular debt instrument, we do not
consider the absence of such instrument a significant factor in
this particular case. It is quite clear that a valid debt may
exist between parties even where no formal debt instrument
exists. Litton Bus. Sys., Inc. v. Commissioner, supra. This is
particularly true in the case of related parties since formal
debt paraphernalia of this type in a closeknit family are not
necessary to insure repayment as the case may be between
unrelated entities. Id. at 377-378.
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