- 118 -
circumstances mentioned above. Petitioners counter that they did
not amend the formula when they amended the agreements for other
reasons because they believed that the agreements produced a fair
and reasonable price. On the contrary, we believe that
petitioners did not alter the formula price because the sons
would benefit (taxwise and pricewise) from leaving in place a
formula transfer price that was as low as possible.
h. Business Arrangements With True Children
Fulfilled Dave True’s Testamentary Intent
Dave True’s business arrangements with his children
fulfilled his testamentary intent, as evidenced by his will and
ancillary estate planning documents. At his death, Dave True’s
estate plan provided equally for his children, except Tamma
Hatten. Dave and Jean True amended their estate planning
documents to delete any specific provisions for Tamma Hatten and
her family after her withdrawal from the family businesses. The
advancement language in Dave True’s appointment document
explained that Tamma Hatten’s “potential inheritance” had been
fully satisfied when his daughter severed her financial ties with
the True companies.
Since the 1970's, each of the True sons has managed one or
more of the True companies. Hank True assumed responsibility for
the oil and gas marketing, pipeline, and environmental cleanup
businesses; Diemer True managed the trucking and tool supply
companies; and David L. True ran the ranching and drilling
Page: Previous 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 NextLast modified: May 25, 2011