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Respondent issued a notice of deficiency to decedent's
estate determining a deficiency in Federal estate tax in the
amount of $6,084,194. A portion of the deficiency is
attributable to respondent's determination that petitioner
understated the value of the gross estate by $8,646,350; i.e.,
the value that respondent assigned to decedent's Chapote limited
partnership interest. The notice of deficiency states in
pertinent part:
It is determined that the decedent had a legally
enforceable claim to the ownership of an 89% limited
partnership interest in Chapote Y Las Joberas, Ltd.
The purported transfer of this interest by Blackstone
Dilworth as fiduciary for the decedent was voidable.
It is also determined that the fair market value of
this interest is $8,646,350. However, the estate is
being credited for $180,000 of authorized gifts in
1990, 1991 and 1992 and $4,089,757 for consideration
received for partnership interests purportedly sold.
Accordingly, the taxable estate is increased by
$4,376,593.
Petitioner invoked the Court's jurisdiction by filing a
timely petition for redetermination.
Petitioner moves for partial summary judgment that the value
of decedent's Chapote limited partnership interest is not
includable in the gross estate, notwithstanding that Dilworth's
transfers of the limited partnership interest are conceded to be
voidable transfers for the purposes of the motion. Petitioner
contends that, under Texas law, a voidable transfer remains valid
and vests title in the transferee until the transfer is
successfully avoided. Relying upon this principle, petitioner
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