Estate of Morton B. Harper, Deceased, Michael A. Harper, Executor - Page 29

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          managed by the decedent exactly as in the past.  Id.  We                    
          therefore found the assets includable under section 2036(a).  Id.           
               We agree with respondent that the circumstances before us              
          bear many similarities to those in Estate of Reichardt v.                   
          Commissioner, 114 T.C. 144 (2000), and Estate of Schauerhamer v.            
          Commissioner, supra, and are convinced that a like result should            
          obtain.  We focus particularly on the commingling of funds, the             
          history of disproportionate distributions, and the testamentary             
          characteristics of the arrangement in support of our conclusion             
          that there existed an implied agreement that decedent would                 
          retain the economic benefit of the assets transferred to HFLP.              
               As regards commingling of funds, we note that this fact was            
          one of the most heavily relied upon in both Estate of Reichardt             
          v. Commissioner, supra at 152, and Estate of Schauerhamer v.                
          Commissioner, supra.  We find the disregard here for partnership            
          form to be equally egregious.  The Agreement specified:  “All               
          funds of the Partnership shall be deposited in a separate bank              
          account or accounts”.  Yet no such account was even opened for              
          HFLP until September 23, 1994, more than 3 months after the                 
          entity began its legal existence.  Prior to that time,                      
          partnership income was deposited in the Trust’s account,                    
          resulting in an unavoidable commingling of funds.                           
               Michael testified concerning this delay as follows:                    
               Inadvertently, either my account or I failed to apply                  
               timely for any--an employee [sic] identification                       

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