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expenses of Garry's estate. For this reason, we have found that
"at least" 65 percent of the proceeds was so used.
The evidence concerning the net loan proceeds not used to
pay such taxes and expenses is less clear. The Land Bank's
records provide few details about the use of these proceeds. It
is clear, however, that some of these proceeds were disbursed by
the Land Bank using checks payable solely to Donald Hendrickson.
It is also clear that all net proceeds not used to pay the taxes
and expenses of Garry's estate were deposited in the Vera Lou
Klippel agent account, which was owned solely by the children.
In addition, other than the unsubstantiated testimony of Donald
Hendrickson, there is no evidence that more than a de minimis
amount of the loan proceeds was used to pay expenses of the
family farm or was otherwise received by or used for the benefit
of decedent.13
The note representing the Land Bank loan provided that
decedent was jointly and severally liable for repayment of the
loan. However, the deeds by which decedent gave away most of her
interest in the family farm land during 1979-93 expressly
provided that the grantees assumed the Land Bank debt to which
the transferred land was subject. As a result of these
13 Petitioner's estate tax return did report some of the
Land Bank stock, with a value of $12,980, as an asset of the
estate.
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