Estate of Ona E. Hendrickson - Page 71





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          provided that the grantees assumed the Land Bank debt to which               
          the transferred land was subject.                                            
               As a result of these assumptions by the children (and their             
          spouses), decedent effectively became a guarantor, rather than a             
          co-obligor, with respect to most of the Land Bank loan.  Because             
          a guarantor's rights to contribution (or subrogation) are greater            
          than a co-obligor's, it would be inappropriate to determine the              
          value of decedent's contribution rights by reference to the                  
          number of obligors on the Land Bank loan.  See Estate of Theis v.            
          Commissioner, 770 F.2d 981 (11th Cir. 1985) (section 2053                    
          deduction denied in its entirety where decedent was only                     
          secondarily liable, because decedent had 100-percent right of                
          contribution from primary debtor), affg. 81 T.C. 741 (1983).                 
               3. Decedent's Status as Guarantor or "Accommodation" Party              
               In addition to the assumptions of debt by decedent's                    
          transferees, there is other evidence that suggests decedent                  
          functioned largely as a guarantor or "accommodation" party with              
          respect to the Land Bank loan.                                               
               First, even petitioner claims that only 17.5 percent of the             
          proceeds from the Land Bank loan was used for decedent's benefit.            
          In addition, all of the net loan 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.  Moreover, other than the unsubstantiated testimony of             





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