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Petitioner contends that decedent received full and adequate
consideration because he received partnership interests, family
disputes were settled, and his children became involved in family
assets. We disagree. Decedent’s children gave nothing to
decedent or the partnership when he transferred property to the
trust and the partnership, and they did not involve themselves in
the partnership.
Petitioner contends that decedent’s children gave
consideration to the partnership in the form of their remainder
interests. We disagree for reasons stated in paragraph B-4,
below.
Petitioner contends that decedent sold the transferred
property to the partnership in exchange for partnership interests
as consideration. We disagree. Petitioner did not sell the
transferred property to the partnership. See Wheeler v. United
States, supra.
3. Comparison of This Case to Schauerhamer v. Commissioner
Petitioner contends that this case is distinguishable from
Schauerhamer v. Commissioner, T.C. Memo. 1997-242. We held in
Schauerhamer that property transferred to three family limited
partnerships was included in the transferor’s estate under
section 2036(a). This case is similar to Schauerhamer in that,
in both cases, the decedents and their children had implied
agreements for the decedents to use property that they had
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