- 52 -
3. Petitioner's Accounting Shows That Much of Decedent's
Investment Income Was Spent on Children's Expenses
Although petitioner's "accounting" is not sufficiently
reliable to show exactly how the income of Garry's estate was
spent, it is still quite useful. Whether we treat the accounting
as an admission by petitioner or evaluate it in light of the
other evidence in the record, the accounting corroborates our
conclusion that the bulk of decedent's investment income was not
spent on the family farm. It also strongly suggests that much of
decedent's income was in fact used to pay the children's
expenses, rather than decedent's expenses.
Petitioner's accounting clearly shows that at least $443,000
of decedent's funds was not used to pay decedent's expenses
during 1979-93. It also clearly shows that the three bank
accounts of Garry's estate summarized in the accounting were used
to pay millions of dollars of the children's expenses during
1979-93. For example, petitioner's accounting shows that over
$1.5 million of expenses explicitly identified as "Children's
Expenses" was paid from the estate's accounts during 1979-93.
The accounting also shows that approximately $1,575,000 of
principal and interest on the Land Bank loan was paid from the
estate's accounts during the same period. Because petitioner
admits that most of the proceeds of the Land Bank loan were used
to pay the children's expenses, petitioner concedes on brief that
Page: Previous 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 NextLast modified: May 25, 2011