Estate of Marie S. Hubberd, Deceased, John B. McNamara, Jr., and Clayborne L. Nettleship, Co-Independent Executors - Page 4

                                        - 4 -                                         

               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                        
               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              

Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011