Estate of Augusta Porter Forbes - Page 10




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               Following the August 1, 1986, sale, the general partnership            
          managed all the assets, including all the timber and pecan trees,           
          on the land held by the limited partnership, and reported all               
          timber and pecan business sales and expenses on all of the land             
          held by the limited partnership.                                            
               On May 1, 1987, the executors of the Forbes estate conveyed            
          to the QTIP trustee the Forbes estate’s interest in the limited             
          partnership by endorsing the certificate of limited partnership             
          units.                                                                      
          Termination of the Limited Partnership and the General                      
          Partnership                                                                 
               On October 7, 1988, Betty and Walter executed a Partnership            
          Termination, Division and Release Agreement (the termination                
          agreement), terminating both the limited partnership and the                
          general partnership, effective December 31, 1987.  In the                   
          termination agreement, Walter and Betty agreed that the assets of           
          the limited partnership and the general partnership would be                
          distributed so that Walter and Betty would each receive equal net           
          values, based upon independent appraisals, and that the QTIP                
          trust would continue to have a 42-percent undivided interest in             
          all of the land, excluding improvements, crops, trees, and                  
          profits.  By the termination agreement, Walter and Betty agreed             

               4(...continued)                                                        
          that the Forbes estate claimed and was allowed a deduction for              
          property interests in excess of those with which the executor of            
          his estate funded the QTIP trust.                                           





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