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and did not transfer in April 1997 to each of the Five Partner-
ships, were sufficient to maintain their respective accustomed
standards of living. Mr. and Ms. Stone did not transfer to any
of the Five Partnerships the 582.672-acre parcel of the Cedar
Mountain property on which Mr. Stone was living in April 1997.39
Ms. Stone did not transfer to any of the Five Partnerships the
Cypress villa on Hilton Head Island in which she was living in
April 1997.
Sometime after the respective bona fide, arm’s-length
transfers of assets in April 1997 to each of ES4LP, CRSLP, RSMLP,
and MSFLP in exchange for partnership interests, the Stone family
realized that there had been an inadvertent, improper valuation
of certain of such assets (valuation errors). Those valuation
errors resulted in each of the children’s having received a total
partnership interest in each such partnership in which such child
had a partnership interest that was larger (unintended excessive
partnership interest) than the Stone family intended and agreed
each should have received had the correct valuation been used.
The Stone family did not intend or agree that a partner of any of
ES4LP, CRSLP, RSMLP, and MSFLP (or ES3LP) was to receive a larger
39On Apr. 8, 1997, Mr. and Ms. Stone gave to Anne Logan
Ministries, Inc., a charity, the remainder interest in the
582.672-acre parcel of the Cedar Mountain property on which Mr.
Stone was living, and Mr. Stone retained a life estate in that
parcel. When Mr. Stone died, he had an ownership interest only
in the .338-acre parcel of the Cedar Mountain property.
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