- 10 - terms of the existing leases and Texas law required extensions and modifications of the lease agreement to be in writing. Respondent further argues that the postdeath leases were created to reduce the value of decedent’s assets for estate tax purposes because Edwards and Carson were both the coexecutors and devisees of decedent’s estate and, as the owners of the ranch properties, would not have to lease the ranch property from themselves to maintain control over the ranch properties and continue their ranching operations. The estate argues that there was a bona fide business purpose in executing the leases, which was to maintain managerial control over the ranch properties. The estate explains that Edwards and Carson, the devisees of the ranch properties, would have joint ownership of both the ranch properties, as coexecutors and devisees, whereas the purpose of the leases was to grant an exclusive possessory right to a particular ranch property to each child. Based on the testimony offered by the estate, we are not persuaded that decedent granted oral options that extended the existing leases indefinitely. In regards to the oral options, Edwards testified on examination by the estate’s counsel: Q Now, Mr. Edwards, * * * beginning in 1985 was there ever any discussions with your mother, Mrs. Pattie Welder Edwards, about who was going to ranch Cotulla and who was going to ranch Sinton? A Well–- Q And if so, when did it happen?Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011