Estate of Eleanor T.R. Trotter - Page 12

                                       - 12 -                                         
          equivalent of the value of an unencumbered estate.  Accordingly,            
          we turn to whether decedent retained an interest within the                 
          meaning of section 2036(a).                                                 
               C.  Existence of a Retained Interest                                   
                    1.  Contentions of the Parties                                    
               Respondent contends that the condominium is includable in              
          decedent’s gross estate on the grounds that decedent retained               
          possession and enjoyment through an implied or tacit agreement.             
          Respondent maintains that all of the circumstances relating to              
          the purported conveyance of the property and decedent’s continued           
          occupancy show an implicit arrangement bringing the residence               
          within the purview of section 2036(a)(1).                                   
               Conversely, the estate avers that the condominium is not               
          subject to inclusion in decedent’s gross estate under section               
          2036(a).  It is the estate’s position that decedent relinquished            
          all legal and equitable rights to the property in 1993.  In                 
          support of this position, the estate emphasizes the following               
          facts:  (1) Title was transferred to the trust; (2) the trustee             
          was bound by the trust terms and by fiduciary duties under State            
          law to hold and manage the property for the benefit of the                  
          beneficiaries; (3) the beneficiaries were given an immediate                
          right to withdraw trust assets and thereby to defeat all other              
          rights; and (4) decedent gave up the economic benefit of being              
          able to generate cash by selling or borrowing against the                   

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011