Estate of Morton B. Harper, Deceased, Michael A. Harper, Executor - Page 46




                                       - 46 -                                         
          Memo. 1987-8; and Church v. United States, 85 AFTR 2d 2000-804,             
          2000-1 USTC par. 60,369 (W.D. Tex. 2000), affd. without published           
          opinion 268 F.3d 1063 (5th Cir. 2001).  The estate apparently               
          argues that the just-cited cases establish that a proportionate             
          partnership interest constitutes per se adequate and full                   
          consideration for contributed assets.  We believe, however, that            
          any such global formulation would overreach what can be drawn               
          from the decisions.                                                         
               First, with respect to Estate of Jones v. Commissioner,                
          supra, Estate of Strangi v. Commissioner, supra, and Shepherd v.            
          Commissioner, supra, none of these opinions involved section                
          2036.  Rather, they considered whether gifts were made at the               
          inception of family limited partnership arrangements.  Estate of            
          Jones v. Commissioner, supra at 127-128; Estate of Strangi v.               
          Commissioner, supra at 489-490; Shepherd v. Commissioner, supra             
          at 384-389.  The cases therefore do not control interpretation of           
          the requirements of section 2036.  Furthermore, while section               
          2512(b) describes a gift as a transfer of property “for less than           
          an adequate and full consideration in money or money’s worth”,              
          there exists an equally fundamental principle that a gift                   
          requires a donee--some other individual must be enriched.  In               
          this connection, we note that Estate of Jones v. Commissioner,              
          supra at 127-128, and Estate of Strangi v. Commissioner, supra at           
          489-490, which find no gift at inception, say nothing explicit              






Page:  Previous  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  51  52  53  54  55  Next

Last modified: May 25, 2011