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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?
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