Estate of Robert V. Schuler - Page 2




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               After concessions,1 the sole issue for decision is whether             
          decedent's transfers of stock in 1994 and 1995 to members of his            
          brother's family were, in substance, indirect gifts of stock to             
          members of his own family.  We hold they were.                              
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found,               
          unless otherwise noted.  The stipulation of facts and the                   
          accompanying exhibits are incorporated herein by this reference.            
          Decedent died testate on October 4, 1995, in Wahpeton, North                
          Dakota (Wahpeton).  At the time the petition in this case was               
          filed, the personal representatives of the estate, Jay Schuler              
          and Thomas Schuler, resided in Wahpeton.                                    
               All section references are to the Internal Revenue Code in             
          effect for the date of decedent's death, and all Rule references            


               1In the notice of deficiency, respondent determined values             
          for certain real properties and a limited partnership interest              
          owned by decedent at the time of his death that decreased the               
          value of the gross estate.  Respondent determined that the value            
          of the taxable estate should be increased for the amount claimed            
          as a charitable deduction which was in excess of the value of the           
          properties contributed to qualified charities, for the unreported           
          value of decedent's brokerage account, and for interest accrued             
          on certain indebtedness owed to decedent.  The estate concedes              
          these adjustments.                                                          
               The estate attached Schedule J to Form 706, United States              
          Estate (and Generation-Skipping Transfer) Tax Return, to claim              
          deductions for $35,000 of attorney's fees, $7,500 of accountant's           
          fees, and $4,400 of miscellaneous expenses.  The parties have               
          stipulated that the estate will incur additional administrative             
          expenses which will further decrease the value of the taxable               
          estate.                                                                     






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