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trust agreement did not require Trust B to transfer those assets
to Trust C before using them to pay or holding them in reserve to
pay taxes. It would have been more practical and economical to
keep cash or other liquid assets to pay a potential tax liability
rather than real property.
Petitioners contend that respondent stipulated that Trust B
had to disburse its income to Trust C. Petitioners point out
that respondent stipulated to a copy of a preprinted part of
Trust B's 1991 income tax return, Form 1041, which says "Amount
of income required to be distributed currently". Petitioners
contend that respondent stipulated that Trust B had to distribute
its income currently to Trust C.
We disagree. The preamble to the stipulation provides:
It is hereby stipulated that the following
statements may be accepted as facts provided, however,
that either party may introduce other and further
evidence not inconsistent with the facts herein
stipulated.
Paragraph 40 of the Stipulation of Facts provides:
40. Attached and marked as Exhibit 22-V is a copy of
the trust income tax return, Form 1041, for the
Severence A. Millikin, Trust B for the year ending
December 31, 1991.
6(...continued)
trustee shall: (1) Distribute the corpus of Trust B according to
decedent's exercise of her power of appointment as decedent
provides in her will; and (2) distribute any unappointed part of
Trust B to Trust C.
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