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Petitioners assert that subsequent to 1990 Frank and Katherine
still owned substantial assets, including a home valued at
$311,000, other real property valued at $8,000, and other assets
valued at $84,900.
Respondent, however, asserts that by the time Katherine died
all of her and Frank’s assets had been transferred to Larry,
Ronnie, and Sylvia. Respondent maintains that in each of the
years in issue Frank’s and Katherine’s known assets were less
than their tax liabilities. Thus, respondent asserts, Frank and
Katherine were insolvent or rendered insolvent by virtue of the
transfers to Larry, Ronnie, and Sylvia.
We agree with respondent that the series of transfers to
Larry, Ronnie, and Sylvia rendered Frank and Katherine insolvent.
Insolvency may be measured after a series of related transfers
which in total leave the transferor insolvent. See Botz v.
Helvering, 134 F.2d 538, 543 (8th Cir. 1943), affg. 45 B.T.A. 970
(1941); see also Hagaman v. Commissioner, supra; Gumm v.
Commissioner, 93 T.C. 475, 480 (1989); Leach v. Commissioner, 21
T.C. 70, 75 (1953). Frank and Katherine’s tax liability began
accruing at the close of 1983, and that liability increased at
the close of each additional year in issue. See Hagaman v.
Commissioner, supra. Thus, by the end of 1990 Frank and
Katherine’s tax liabilities exceeded the assets enumerated by
petitioners. Those assets were further reduced during 1991 when
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