Estate of Ellie B. Williams, Deceased, Robert M. Driggers, Sr., Personal Representative, et al. - Page 11

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          petitioner retained a tax attorney to advise him in his work as             
          personal representative of decedent's estate.  The tax attorney             
          discussed the transfers with petitioner, concluded that the                 
          transfers were gifts, and prepared gift tax returns.  Petitioner            
          and decedent's other personal representative signed both returns            
          and filed them with the Internal Revenue Service in April 1993.             
               Decedent's personal representatives reported on decedent's             
          estate tax return that she had a gross estate of $869,391.85.               
                                    II.  OPINION                                      
          A.   Whether Decedent Made Taxable Gifts in 1980 and 1983 When              
               She Transferred Undivided One-half Interests in Timberland             
               to Petitioner                                                          
               1.   Background and Contentions of the Parties                         
               Respondent determined and contends that decedent's transfers           
          of undivided one-half interests in timberland to petitioner in              
          1980 and 1983 were taxable gifts.  Petitioners contend that                 
          decedent made the transfers in the ordinary course of business to           
          compensate petitioner for his many years of work for her and that           
          decedent lacked donative intent.                                            
               A transfer of property is not a taxable gift if it is made             
          in the ordinary course of business (i.e., is bona fide, at arm's            
          length, and without donative intent), even if the transfer is for           
          less than adequate and full consideration.  Estate of Anderson v.           









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