Estate of Lea K. Hillgren, Deceased, Mark Hillgren, Executor - Page 27

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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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