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1197, 1225 (1987); Estate of Rapelje v. Commissioner, 73 T.C. 82,
86 (1979).
In this case, the circumstances surrounding establishment of
the partnerships show that, at the time of the transfer, there was
an implied agreement or understanding that decedent would retain
the enjoyment and economic benefit of the property he had
transferred. Before the partnerships were formed, Betsy sought
assurances from the financial advisers that decedent would be able
to withdraw assets from the partnerships in order to make cash
gifts each year to his children, grandchildren, and great
grandchildren. In late November 1993 after the partnerships were
formed, George asked the advisers how decedent could get $40,000
out of the partnerships to give as Christmas presents. The implied
agreement among decedent, Robert, Betsy, and George that decedent
would retain the enjoyment and economic benefit of the transferred
property is reflected also by the distributions made by the
partnerships to decedent. Late in 1993 and again in 1994, both the
Turner Partnership and the Thompson Partnership made distributions
to decedent of $40,000 so that he could continue his practice of
giving substantial gifts at Christmastime to his family members.
The circumstances also demonstrate an understanding that
decedent’s interest in the transferred property would last until
his death. When the partnerships were established, decedent parted
with almost all of his wealth, retaining enough to support himself
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