Estate of Ona E. Hendrickson - Page 56




                                        - 56 -                                         

          husband's transfer of certain literary rights, in the absence of             
          proof that the services were bargained for).                                 
               As we have noted, the children's services were performed                
          primarily with respect to their own land, and there is no                    
          evidence their services were bargained for.  Therefore, we find              
          that the children's services do not constitute consideration for             
          purposes of the gift tax; they do not offset any use of                      
          decedent's income for the benefit of the children.                           
               5. No Land Bank Loan Payments Were Decedent's Expenses                  
               Petitioner admits that 65 percent of the proceeds of the                
          Land Bank loan was used to pay the taxes and administration                  
          expenses of Garry's estate.  Petitioner further admits that under            
          Garry's will the children were responsible for these payments.               
               Petitioner claims that the remaining 35 percent of the loan             
          proceeds was used to pay the expenses of the family farm.                    
          Because petitioner believes one-half of the farm expenses were               
          decedent's expenses, petitioner claims that 17.5 percent of the              
          loan proceeds was used to pay decedent's expenses.  As a result,             
          petitioner asserts that 17.5 percent of the Land Bank loan                   
          payments made during 1979-93 (approximately $276,000) should be              
          considered to be decedent's expenses, the payment of which by                
          decedent would not be a taxable gift.                                        
               The evidence suggests that even more than 65 percent of the             
          loan proceeds was used to pay the taxes and administration                   





Page:  Previous  46  47  48  49  50  51  52  53  54  55  56  57  58  59  60  61  62  63  64  65  Next

Last modified: May 25, 2011