Estate of Albert Strangi - Page 14

                                       - 14 -                                         
               We are not persuaded by the testimony that SFLP was formed             
          to protect assets from will contests by Angela or Lynda Seymour             
          or from a potential tort claim by Stone.  The Seymour claims were           
          stale when the partnership was formed, and they never                       
          materialized.  There was no direct corroboration that Stone was             
          injured by decedent while she was caring for him or any                     
          indication that Stone ever threatened litigation.                           
               We also do not believe that a “joint investment vehicle” was           
          the purpose of the partnership.  Mr. Gulig took over control of             
          decedent’s affairs in September 1993, under the 1988 power of               
          attorney, and Mr. Gulig continued to manage decedent’s assets               
          through his management responsibilities in Stranco.  Petitioner             
          concedes, in disputing respondent’s alternative claim of gift tax           
          liability, that “directly or indirectly, the Decedent ended up              
          with 99.47% of the Partnership, having put in essentially 99.47%            
          of the capital.”                                                            
               The formation and subsequent control of SFLP were                      
          orchestrated by Mr. Gulig without regard to “joint enterprise”.             
          He formed the partnership and the corporation and then invited              
          Mrs. Gulig’s siblings, funded by her, to invest in the                      
          corporation.  The Strangi children shared in managing the assets            
          only after and to the extent that the Merrill Lynch account was             
          fragmented in accordance with their respective beneficial                   

Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011