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B. Application to the Gifted Property
Beginning with the property itself, we reiterate that the
donees in these cases did receive, at least in the sense of
title, outright possession of the Treeco units. Nonetheless, as
previously explained, the simple expedient of paper title does
not in and of itself create a present interest for purposes of
section 2503(b) unless all the facts and circumstances establish
that such possession renders an economic benefit presently
reachable by the donees. It therefore is incumbent upon
petitioners to show the present (not postponed) economic benefit
imparted to the donees as a consequence of their receipt of the
Treeco units.
In considering this issue, we first address the role of the
Treeco Operating Agreement in our analysis. Petitioners state
that each gifted Treeco unit “represented a significant bundle of
legal rights in the venture, rights which are defined by the
Operating Agreement, Treeco’s Articles of Organization, and
Indiana statutory and common law”. At the same time, petitioners
aver: “The postponement question is not concerned with
contractual rights inherent in the transferred property, but
rather in whether, in the transfer of the property, the
transferor imposed limitations or restrictions on the present
enjoyment of the property.” They then go on to quote the
language from section 25.2503-3(a), Gift Tax Regs., which
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