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gift to charity, it would appear that petitioners’ claimed
charitable deduction herein would have been completely
disallowable. See the analysis below relating to the
deductibility of gifts to charity of partial interests.
The Gift
Petitioners formed MIL as a Texas family limited partnership
and made gifts of a portion of their interests therein by way of
an assignment agreement and a formula clause which, according to
petitioners and the majority opinion, transferred only assignee
interests in MIL to four levels of donees, generally as follows:
First and Second Level (Noncharitable) Donees: Trusts for
the benefit of the donors’ four children (first level
donees) to receive portions of the gifted interest and
outright gifts to the donors’ four children (second level
donees) with an aggregate fair market value on the valuation
date up to $6,910,933;
Third Level Donee: If the fair market value of the gifted
interest exceeds $6,910,933, Symphony, a charitable donee,
to receive such excess up to a maximum value of $134,000;
Fourth Level Donee: If the fair market value of the gifted
interest exceeds $7,044,933 ($6,910,933 plus $134,000), CFT,
also a charitable donee, to receive such excess without
limit.
Focusing on the gift to the fourth level charitable donee
(the gift to CFT), petitioners themselves allege (in order to
beef up the valuation discounts they seek) and the majority
opinion finds, majority op. pp. 19-24, that the gifted MIL
partnership interest transferred to CFT included only certain
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