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use these roads. The landlocked condition of the Fishbranch
parcel impeded the trustees' efforts to sell it.
a. Part Gift/Part Sale of Basinger
Soon after decedent's death, Messrs. Pearce and Lanier
discussed their options as to how to handle the Basinger tract.
Early in 1992, the Water District approached Messrs. Lanier and
Pearce and proposed that the Trust donate the entire Basinger
parcel to the Water District. The trustees concluded that the
beneficiaries of the Trust would not want to donate so much land.
Instead, Messrs. Lanier and Pearce entered into a contract with
the Water District in their capacity as trustees of the Trust,
pursuant to which they donated a portion of Basinger and sold the
remaining portion of Basinger to the Water District (Gift/Sale
Transaction). Approximately 615 acres were sold to the Water
District for a price of $1,077,000, and approximately 468 acres
were donated to the Water District.4 The donated portion
included the Lockett family residence, and the other historical
sites. As part of the Gift/Sale Transaction, Messrs. Lanier and
4 Respondent argues that the 468 acres included 44 acres of
land that were only quitclaimed to the Water District, since the
petitioner did not have clear title to those acres. Because we
disallow the charitable deduction claimed by petitioner for the
transfer to the Water District, we need not decide whether these
44 acres were part of the transferred parcel, nor need we value
the transferred parcel or make findings of fact related thereto
resolving Basinger's exact acreage.
Messrs. Lanier and Pearce intended to dispose of Basinger in
its entirety. But because surveyors overlooked a tract of
approximately 40 acres, the Trust owned approximately 40 acres of
Basinger at the time of trial.
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