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death. Mr. Renbarger made no effort, however, to collect either
of the outstanding loans or to collect interest payments from his
son.
Mr. Renbarger forgave the loan to himself according, he
claims, to decedent’s wishes. In addition, Randy Renbarger
testified that his interest payments were contingent upon his
“ability to pay”, which coincidentally stopped in the same month
decedent died.10 Mr. Renbarger thereafter refused to enforce
collection of interest payments on Randy Renbarger’s loan,
because he was now the sole beneficiary and, because the loan to
his son became his personal property, he just “called it off”.
We find Mr. Renbarger’s relinquishment of the estate’s right to
accounts receivable and interest payments at a time it owed a
significant Federal estate tax not consonant with ordinary
business care and prudence.
Respondent also claims the estate made insufficient efforts
to obtain a loan. Mr. Renbarger counters that he made two
informal inquiries, but that in both instances he would have had
to personally guarantee the loan, which he was not willing to
do.11 There is no evidence in the record that Mr. Renbarger ever
10No promissory note for Randy Renbarger’s loan was
submitted into evidence.
11Respondent asserts that Mr. Renbarger’s failure to
consider granting a personal guaranty to obtain a loan or
contributing proceeds he received from two annuity contracts to
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