Estate of Albert Strangi - Page 13

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               The estate contends that there were “clear and compelling”             
          nontax motives for creating SFLP, including the provision of a              
          flexible and efficient means by which to manage and protect                 
          decedent’s assets.  Specifically, the estate argues that its                
          business purposes for forming SFLP were (1) to reduce executor              
          and attorney’s fees payable at the death of decedent, (2) to                
          insulate decedent from an anticipated tort claim and the estate             
          from a will contest (by creating another layer through which                
          creditors must go to reach assets conveyed to the partnership),             
          and (3) to provide a joint investment vehicle for management of             
          decedent’s assets.  We agree with respondent that there are                 
          reasons to be skeptical about the nontax motives for forming                
               We are skeptical of the estate’s claims of business purposes           
          related to executor and attorney’s fees or potential tort claims.           
          Mr. Gulig testified that, on various social occasions, he                   
          consulted with a former probate judge about decedent’s                      
          anticipated estate.  Those consultations, however, were not                 
          related in time or purpose to the formation of SFLP.  In our                
          view, the testimony about consultation is similar to the evidence           
          described in Estate of Baron v. Commissioner, 83 T.C. 542, 555              
          (1984), affd. 798 F.2d 65 (2d Cir. 1986), to wit, the                       
          “‘consultation’ was mere window dressing to conceal tax motives.”           

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