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Kleberg and Nueces Counties; (3) a one-third interest in the
Cameron and San Patricio property; (4) investment accounts at
Rauscher Pierce and Smith Barney Shearson; (5) the Graham note;
and (6) cash; i.e., all of the property alleged to have been in
the partnership when decedent died (the transferred property).
1. Whether Decedent Retained Possession, Enjoyment, or the
Right to the Income From the Transferred Property
During His Lifetime
For purposes of section 2036(a), a transferor retains the
enjoyment of property if there is an express or implied agreement
at the time of the transfer that the transferor will retain the
present economic benefits of the property, even if the retained
right is not legally enforceable. See Guynn v. United States,
437 F.2d 1148, 1150 (4th Cir. 1971); Estate of McNichol v.
Commissioner, 265 F.2d 667, 671 (3d Cir. 1959), affg. 29 T.C.
1179 (1958); Estate of Spruill v. Commissioner, 88 T.C. 1197,
1225 (1987); Estate of Rapelje v. Commissioner, 73 T.C. 82, 86
(1979); Estate of Honigman v. Commissioner, 66 T.C. 1080, 1082
(1976); Estate of Gilman v. Commissioner, 65 T.C. 296, 306-307
(1975), affd. 547 F.2d 32 (2d Cir. 1976); sec. 20.2036-1(a),
Estate Tax Regs. (last sentence).
In deciding whether there was an implied agreement, we
consider all of the facts and circumstances surrounding the
transfer and subsequent use of the property. See Estate of
Spruill v. Commissioner, supra; Estate of Rapelje v.
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