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distributions would be outside the day-to-day business of a
partnership capitalized nearly exclusively with investment
assets. As a practical matter, actual disbursement of funds
occurred when checks were issued by Mr. and Mrs. Gulig in their
various related capacities, pursuant to rights granted to them by
decedent, acting through Mr. Gulig.
Hence, to summarize, the SFLP agreement named Stranco
managing general partner with the sole discretion to determine
distributions. The Stranco shareholders, including decedent
(through Mr. Gulig), then acted together to delegate such
authority to Mr. Gulig under the management agreement.
Decedent’s attorney in fact thereby stood in a position to make
distribution decisions. Mrs. Gulig effectuated these decisions
by signing checks to the recipients so designated.
1. Section 2036(a)(1)
Section 2036(a)(1) provides for inclusion of transferred
property with respect to which the decedent retained, by express
or implied agreement, possession, enjoyment, or the right to
income. Enjoyment in this context is equated with present
economic benefit.
a. Right to income
As a threshold matter, we observe that our analysis above of
the express documents suggests inclusion of the contributed
property under section 2036(a)(1) based on the “right to the
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