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principally as an alternate vehicle through which decedent would
provide for his children at his death. Estate of Schauerhamer v.
Commissioner, supra. We conclude that decedent retained enjoyment
of the contributed property within the meaning of section
2036(a)(1).
B. Whether Decedent Transferred Property to the Partnership
in a Bona Fide Sale for Full and Adequate Consideration
Section 2036(a) does not apply to a transfer that is “a bona
fide sale for an adequate and full consideration in money or
money’s worth”. Decedent’s estate contends that decedent’s
transfer of his assets to the partnerships falls within that
exception. We disagree. We believe that decedent’s transfer of
his property to the partnerships does not constitute “a bona fide
sale for an adequate and full consideration”, within the meaning of
section 2036(a).
The exemption under section 2036(a) is limited to those
transfers where the transferor has received full consideration in
a genuine arm’s-length transaction. Estate of Goetchius v.
Commissioner, 17 T.C. 495, 503 (1951). The exemption is not
allowed where there is only contractual consideration but not
“adequate and full consideration in money or money’s worth.” Id.
When a family partnership is only a vehicle for changing the
form in which the decedent held his property--a mere “recycling of
value”--the decedent’s receipt of a partnership interest in
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