- 22 -
Commissioner, T.C. Memo. 1997-242 (quoting Estate of Hendry v.
Commissioner, 62 T.C. 861, 873 (1974)).
It is clear from the documentary evidence and the testimony
elicited at trial that, regardless of the form of decedent’s
transfers, she continued to enjoy the right to support and
maintenance from all the income that the FLPs generated.
According to the decree (the document which authorized the
creation of the FLPs), decedent’s needs for support were
contemplated first from the income that the FLPs generated. Only
after decedent’s support needs, if any, were met did the
children/limited partners receive their proportionate share of
the partnership income. Decedent’s support needs were treated as
an obligation of the FLPs. For example, the decree provided that
decedent’s children
shall receive income from said * * * [FLPs] * * * after
deducting from the gross income of the partnership all fees,
taxes, partnership administration expenses, reserve for
expenses and monies needed in the discretion of the limited
Guardian ad litem * * * for Ida Abraham’s support.
In the decree, decedent’s children agreed that they would
share equally any and all costs and expenses related to
* * * the support of Ida Abraham insofar as the funds
generated by Ida Abraham’s properties maintained by her
do not provide sufficient funds for her adequate
health, safety, welfare and comfort as determined by
the limited Guardian ad litem * * *
The document further provided:
Ida Abraham’s living arrangement shall remain in accordance
with the present arrangement and every effort will be made
to maintain her in “status quo.” Her segregated assets
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011