-47-
essential task is to “separate the true nontax reasons for the
[entities’] formation from those that merely clothe transfer tax
savings motives.” Estate of Bongard v. Commissioner, supra at __
(slip op. at 44). It must be recognized, however, that
“Legitimate nontax purposes are often inextricably interwoven
with testamentary objectives.” Id. Furthermore, with respect to
the particular case at bar, the Court must be cognizant of any
potential divergence between decedent’s actual motives and the
concerns of his advisers.
The estate’s position is that Schutt I and II were “formed
primarily to put into place an entity to perpetuate Mr. Schutt’s
buy and hold investment philosophy with respect to the DuPont and
Exxon stock belonging both to Mr. Schutt and to the Wilmington
Trust Company Trusts.” In service of this objective, Schutt I
and II were aimed at “the furtherance and protection of * * *
[decedent’s] family’s wealth by providing for the centralized
management of his family’s holdings in duPont [sic] stock and
Exxon stock during his lifetime and to prevent the improvident
disposition of this stock during his lifetime and to the extent
possible after his death.” The estate contends that the desired
preservation of decedent’s investment policy “could not be
accomplished without the creation of Schutt I and Schutt II, as
the WTC Trusts were scheduled to terminate at various intervals
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