Estate of Morton B. Harper, Deceased, Michael A. Harper, Executor - Page 27

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          focus here is on whether there existed an implicit agreement that           
          decedent would retain control or enjoyment, i.e., economic                  
          benefit, of the assets he transferred to HFLP.                              
               Respondent avers that section 2036’s applicability is                  
          established on these facts, emphasizing in particular actual                
          conduct with respect to partnership funds.  Respondent further              
          maintains that this case is indistinguishable from the situations           
          presented in Estate of Reichardt v. Commissioner, supra, and                
          Estate of Schauerhamer v. Commissioner, T.C. Memo. 1997-242.  The           
          estate, on the other hand, discounts the evidence and cases                 
          relied on by respondent, emphasizing instead the formal terms of            
          the partnership arrangement and the accounting treatment of                 
          entity assets.                                                              
               In Estate of Reichardt v. Commissioner, supra at 147-148,              
          the decedent formed a family limited partnership, the general               
          partner of which was a revocable trust created on the same date.            
          The decedent and his two children were named as cotrustees, but             
          only the decedent performed any meaningful functions as trustee.            
          Id. at 147, 152.  He was the only trustee to sign the articles of           
          limited partnership, to open brokerage accounts, or to sign                 
          partnership checks.  Id. at 152.  He transferred his residence              
          and all of his other property (except for his car, personal                 
          effects, and a small amount of cash in his checking account) to             
          the partnership and subsequently gave his two children limited              

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