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case of ES3LP and that Eugene Earle Stone, IV, C. Rivers Stone,
Ms. Morris, and Ms. Fraser contribute services in providing such
management in the case of ES4LP, CRSLP, RSMLP, and MSFLP, respec-
tively. As Mr. Stone and Ms. Stone intended, after the funding
of ES3LP, the children actively participated in the management of
the assets of that partnership, and after the funding of ES4LP,
CRSLP, RSMLP, and MSFLP, Eugene Earle Stone, IV, C. Rivers Stone,
Ms. Morris, and Ms. Fraser, respectively, actively participated
in the management of the assets of such partnerships.
Based upon our examination of the entire record before us,
we find that the respective transfers of assets by Mr. Stone and
Ms. Stone to each of the Five Partnerships were bona fide sales
for adequate and full consideration in money or money’s worth
under section 2036(a).77
Possession or Enjoyment of, or
Right to Income from, the Transferred Property
We have found that the respective transfers of assets by Mr.
77Although not altogether clear, respondent appears to take
the position that, where a decedent has made a bona fide transfer
of property for which the decedent has received an adequate and
full consideration in money or money’s worth and with respect to
which the transferor has retained possession or enjoyment of, or
the right to income from, such property, the exception in sec.
2036(a) for “a bona fide sale for an adequate and full consider-
ation in money or money’s worth” may never apply to such a
transfer. We reject any such position. That position, like
respondent’s position about the discounted values of the partner-
ship interests at issue, in effect reads out of sec. 2036(a) the
exception that Congress expressly prescribed when it enacted that
statute.
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