- 32 -
in an orderly fashion. There wasn’t any deadline or urgency to
do it and get it done.” The following colloquy then ensued:
Q Now let’s talk for a moment about the income from
the portfolio assets. Before the title to the assets
was transferred to the partnership, your father or his
trust continued to receive the income from those
assets. Isn’t that right?
A Would you restate that? I’m lost.
Q Okay. At a certain point in time the assets were
contributed to the partnership, correct?
A Yes.
Q Okay. Before that happened, your father’s trust
continued to receive the income from those assets,
correct?
A Probably.
Q Well, why isn’t it Yes?
A Well, before he contributed it, he was in control
of that. Who else would get it? I say probably.
Hence, we are again met with an example of indifference by
those involved toward the formal structure of the partnership
arrangement and, as a corollary, toward the degree of separation
that the Agreement facially purports to establish. Moreover,
until title to the assets was transferred to HFLP, decedent would
not have forfeited the control over the underlying securities
that he through the Trust possessed as legal holder. Thus, at
the time of the June 14, 1994, creation of HFLP and for some
months following, decedent’s Trust retained title to the
underlying assets and was issued the dividends and interest
Page: Previous 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 NextLast modified: May 25, 2011