- 29 -
not shield the trust from its liability as an owner of the
property because decedent’s trust was Spindrift’s general
partner.
Fourth, Mrs. Kimbell retained more than $450,000 in assets
outside of the partnership for her support. In contrast,
decedent did not retain enough assets to support herself.
Finally, Mrs. Kimbell did not make continuous transfers
between her personal assets and the Kimbell partnership’s assets.
Mr. Bigelow transferred funds between decedent’s trust and
Spindrift 40 times from April 1995 to August 1997. Decedent’s
trust used partnership funds and the partnership used trust
funds. The facts supporting a finding of a bona fide sale for
adequate and full consideration in Kimbell are not present here.
C. Conclusion
We conclude that decedent and her children had an implied
agreement that decedent could continue during her lifetime to
enjoy the economic benefits of, and retain the right to the
income from, the Padaro Lane property after she conveyed the
property to the partnership, and that the transfer was not a bona
fide sale for adequate and full consideration. Thus, the value
of the Padaro Lane property is included in decedent’s gross
estate. See sec. 2036(a)(1).
Decision will be
entered for respondent.
Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Last modified: May 25, 2011