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included in the decedent’s gross estate. See sec. 2036(a)(1);
Estate of Reichardt v. Commissioner, supra at 152.
Section 2036(a) does not apply if the transfer of property
was part of a bona fide sale in exchange for full and adequate
consideration. A bona fide sale is an arm’s-length business
transaction between a willing buyer and a willing seller. Estate
of Reichardt v. Commissioner, supra at 155.
The estate argues that there was no agreement, express or
implied, that decedent would retain the possession, control, or
enjoyment of, or the right to the income from, the partnership.
The estate contends that, because the partnership was in
existence for only 5 months at the time of decedent’s death,
there was not enough time to establish a pattern of history or
behavior from which respondent could imply an agreement.
Respondent contends that, shortly after decedent’s initial
suicide attempt, decedent executed her will, the amended trust,
and the LKHP agreement, thereby transferring substantially all of
her assets. Respondent argues that the practical effect of the
partnership was minimal because decedent continued to be the sole
economic beneficiary of the property that was contributed to the
partnership.
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