-49-
The documentary record also furnishes at least a measure of
objective support for the decedent’s willingness to act based on
these worries. In 1994, decedent declined to make annual
exclusion gifts of limited partnership interests in the Schutt
Family Limited Partnership to his daughter Sarah S. Harrison and
her children. The estate attributes this decision to concern
about the investment philosophy of these individuals, and the
limited evidence does reflect 13 occasions on which DuPont or
Exxon stock was sold by Harrison grandchildren from 1989 through
1997.
Further corroborating the bona fides of the professed intent
underlying creation of Schutt I and II is the fact that formation
of the business trusts did serve to advance this goal.
Respondent’s contention that the business trusts were unnecessary
to perpetuate decedent’s investment philosophy unduly emphasizes
management of the assets held by the Revocable Trust and
minimizes any focus on the considerable assets held in the WTC
trusts. Respondent points out that, under the Revocable Trust
indenture, decedent could control investment decisions pertaining
to the assets until his death, at which time various successor
trusts to be administered by his son and son-in-law would be
funded. Respondent argues that the situation under the business
trusts was functionally equivalent, with decedent as trustee
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