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suspicion and speculation about a decedent’s estate planning and
testamentary objectives are not sufficient to disregard an
agreement in the absence of persuasive evidence that the agreement
is not susceptible of enforcement or would not be enforced by
parties to the agreement.” Estate of Strangi v. Commissioner, 115
T.C. 478, 485 (2000), affd. on this issue, revd., and remanded 293
F.3d 279, 282 (5th Cir. 2002); Hall v. Commissioner, 92 T.C. 312,
335 (1989).
The Thompson Partnership and Thompson Corp. were validly
formed pursuant to Colorado law, and the Turner Partnership and
Turner Corp. were validly formed pursuant to Pennsylvania law.
Potential purchasers of decedent’s assets would not disregard the
partnership. Thus, the partnerships had sufficient substance to be
recognized for Federal estate and gift tax purposes. Knight v.
Commissioner, 115 T.C. 506, 513-515 (2000); Estate of Strangi v.
Commissioner, supra; Dailey v. Commissioner, T.C. Memo. 2001-263.
III. Whether the Assets Decedent Transferred to the Partnerships
Should Be Included in Decedent’s Gross Estate Under Section
2036(a)
Section 2051 defines the “taxable estate” as “the value of the
gross estate, less applicable deductions.” Section 2031(a)
specifies that the gross estate comprises “all property, real or
personal, tangible or intangible, wherever situated”. Section 2033
broadly states that “The value of the gross estate shall include
the value of all property to the extent of the interest therein of
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