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tions. * * * The creation of the [Five] Partnerships
did not constitute “value recycling,” and Mr. and Mrs.
Stone received full and adequate consideration for
their transfers to the partnerships. [Fn. ref. omit-
ted.]
On the record before us, we agree with the estates’ position
and reject respondent’s position. The instant cases are distin-
guishable from Estate of Harper v. Commissioner, supra, and other
cases factually similar to Estate of Harper71 on which respondent
relies, and respondent’s reliance on such cases is misplaced.
Unlike the transfers involved in Estate of Harper and those other
cases, we have found on the record in the instant cases that the
respective transfers of assets by Mr. Stone and Ms. Stone to each
of the Five Partnerships, as well as the respective transfers of
assets by the other partners to each such partnership,72 were bona
71See supra note 70.
72All the partners of each of the Five Partnerships trans-
ferred to each such partnership respective assets such partners
owned. We reject respondent’s contention that, because certain
of the assets that the children respectively transferred to one
or more of the Five Partnerships were assets that they received
as gifts from Mr. Stone, the children did not make transfers to
one or more of such partnerships that should be recognized for
purposes of determining the applicability of sec. 2036(a)(1) to
such transfers. Mr. Stone gave certain property to each of the
children, which they then transferred to one or more of the Five
Partnerships in return for partnership interests. Mr. Stone
reported the gifts that he made to the children in his 1997 gift
tax return. The children owned the assets that he gave them when
they respectively transferred such assets to one or more of such
partnerships. In this connection, we note that respondent
abandoned the alternative substance over form doctrine advanced
in the respective notices issued to Mr. Stone’s estate and Ms.
Stone’s estate.
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