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of partnership income to replace the income lost because of the
transfer of the Padaro Lane property to the partnership shows
that there was an implied agreement between decedent and her
children that she would retain the right to the income from the
Padaro Lane property.
2. Whether There Was an Implied Agreement That Decedent
Would Retain the Enjoyment of the Padaro Lane Property
During Her Lifetime
The estate contends that there was no express or implied
agreement for decedent to retain the enjoyment of the Padaro Lane
property. We disagree. Enjoyment includes present economic
benefits. Guynn v. United States, 437 F.2d 1148, 1150 (4th Cir.
1971); Estate of Reichardt v. Commissioner, supra at 151. After
the transfer of the Padaro Lane property to Spindrift, the
property continued to secure decedent’s legal obligation to pay
the $350,000 Great Western Bank loan and the $100,000 Union Bank
line of credit. Thus, decedent retained the economic benefit of
ownership of the Padaro Lane property after it was transferred to
the partnership.
We conclude that there was an implied agreement between
decedent and her children that she would retain for her life the
present economic benefit of the Padaro Lane property.
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