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unequivocally, irrevocably, and without possible reservations,
parts with all of his title and all of his possession and all of
his enjoyment of the transferred property.” Commissioner v.
Estate of Church, 335 U.S. 632, 645 (1949).
Under section 2036(a), a transferor retains the enjoyment of
the property transferred if there is an express or implied
agreement at the time of the transfer that the transferor will
retain the present economic benefits of the property, even if the
retained right is not legally enforceable. See Estate of
Reichardt v. Commissioner, 114 T.C. 144, 151 (2000); sec.
20.2036-1(a), Estate Tax Regs. In deciding whether there was an
implied agreement, the Court considers all of the facts and
circumstances surrounding the transfer and the subsequent use of
the property. See Estate of Reichardt v. Commissioner, supra at
151. Where the decedent conveys all or nearly all of his or her
assets to a trust or partnership, this may suggest an implied
agreement that the decedent can continue to use the assets. See
id. at 153. Section 2036 applies not only if a transferor
retains possession or enjoyment of property but also if a
transferor retains the right to income from the property. See
sec. 2036(a)(1); Estate of Reichardt v. Commissioner, supra at
153. Moreover, if a decedent’s relationship to the assets
transferred to a partnership remains the same after the transfer
as it was before the transfer, the value of the assets may be
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