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partnership interests. Id. at 148-149, 152-153. The decedent
deposited partnership income in his personal account, used the
partnership checking account as his personal account, and lived
at his residence without paying rent to the partnership. Id. at
152. Based on these facts, we concluded that nothing but legal
title changed in the decedent’s relationship to his assets after
he transferred them to the partnership. Id. at 152-153.
In Estate of Schauerhamer v. Commissioner, supra, the
decedent formed three limited partnerships. The decedent and one
of her three children were named as the general partners of each
partnership, with the decedent’s being designated as the managing
partner. Id. The decedent transferred business assets,
including real estate, partnership interests, and notes
receivable, to the partnerships in undivided one-third shares.
Id. Limited partnership interests in these entities were given
to family members. Id. Partnership bank accounts were opened,
but the decedent deposited the income earned by the partnerships
into the account she used as her personal checking account, where
it was commingled with funds from other sources. Id. Checks
were then written from this account to pay both personal and
partnership expenses. Id. The decedent’s children later
acknowledged at trial that formation of the partnerships was
merely a way to enable the decedent to assign interests in the
partnership assets to family members, with the assets to be
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