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(g) The fractional share gifts of the Limited Partnership
interest made by the Decedent * * * were made outright,
absolutely, and unconditional. The Decedent retained no
incidents of ownership and had no further rights with
respect to the Limited Partnerships, either express or
implied.
We think the description in the notice is sufficient to
provide the estate with a description of the factual and legal
bases for respondent’s deficiency determination and that
respondent has not raised any new issues. Accordingly, we find
that the burden of proof does not shift to respondent.
B. Section 2036--Full Inclusion of the FLP Interests?
In the notice of deficiency, respondent determined that
decedent transferred interests in the FLPs “for less than
adequate and full value in money or money’s worth and that the
decedent, through the guardian, retained an interest” in the FLP
interests transferred and that the full fair market values of the
FLPs should have been included in decedent’s gross estate.23 On
brief, respondent explains that the interplay between the probate
court’s decree and the estate plan documents themselves expressly
created for decedent, through her duly appointed legal
representatives, a retained right to all the income that the FLPs
generated. Alternatively, respondent argues that there was an
implied agreement between decedent’s children and the limited
23See supra note 20.
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