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interests in land, an implied trust in favor of a son-in-law who,
without consideration and without relinquishing possession of the
land, had executed a land deed to his father-in-law with the
mutual understanding that the father-in-law would convey the land
to the son-in-law’s wife and children).
In Estate of Spruill v. Commissioner, supra, this Court
applied these principles of implied trusts under Georgia law to
conclude that an implied resulting trust arose in favor of a
daughter and her husband with respect to a homesite where the
facts clearly demonstrated an understanding among the parties
that the daughter’s father took legal title to the homesite for
the sole purpose of obtaining financing on the property but
enjoyed no beneficial interest in the property. Accordingly,
this Court determined that the homesite was not includable in the
father’s gross estate. See also Estate of Rodriguez v.
Commissioner, T.C. Memo. 1989-13 (applying Georgia law to hold
that decedent’s gross estate excluded beneficial interests in
real property with respect to which decedent held legal title as
the trustee of an implied resulting trust in favor of his closely
held corporation, based on a mutual understanding that the
closely held corporation was to have beneficial ownership).
Here, the totality of the evidence clearly shows a mutual
understanding and intent that when Mr. Forbes, Walter, and Betty
transferred their respective property interests to the limited
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