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interest in each such partnership that she owned on the date of
her death. In light of the foregoing concessions by Mr. Stone’s
estate and by Ms. Stone’s estate, we hold that Mr. Stone and Ms.
Stone each made a transfer of property under section 2036(a). We
shall address below whether such respective transfers were other
than bona fide sales for adequate and full consideration in money
or money’s worth under that section.
Ms. Stone’s estate disputes, and does not concede, that Ms.
Stone made a transfer of property to ES3LP in exchange for the
69.973 percent partnership interest in that partnership that the
AWS Trust held on the date of her death. Respondent agrees with
Ms. Stone’s estate.68 In light of respondent’s concession, we
hold that Ms. Stone did not make a transfer of property under
section 2036(a) with respect to the 69.973 percent partnership
interest in ES3LP that the AWS Trust held on the date of her
death.69
68According to respondent, “it is irrelevant that Mrs. Stone
made no � 2036(a) transfer with respect to that [69.973 percent]
interest [in ES3LP].” That is because, as indicated above,
respondent relies on sec. 2044 at the time of Ms. Stone’s death,
and sec. 2036(a)(1) at the time of Mr. Stone’s death, to support
respondent’s position that 69.973 percent of the assets of ES3LP
on the date of Ms. Stone’s death is includible in her gross
estate.
69We shall address below respondent’s argument under sec.
2044.
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