-59-
As regards other factors considered indicative of a bona
fide sale, these too tend to support the estate’s position. The
contributed property was actually transferred to Schutt I and II
in a timely manner. Entity and personal assets were not
commingled. Decedent was not financially dependent on
distributions from Schutt I and II, retaining sufficient assets
outside of the business trusts amply to support his needs and
lifestyle. Nor was decedent effectively standing on both sides
of the transactions.
Concerning this latter point, it is respondent’s position
that “there were no ‘arm’s-length negotiations’ between the
decedent and the bank concerning any material matters affecting
the formation and operation of the business trusts.” Respondent
maintains that WTC, while ostensibly an independent third party,
simply represented the interests of decedent’s children and
grandchildren and that decedent dictated all material terms.
The Court, however, is unpersuaded by respondent’s attempts
to downplay the give-and-take reflected in the record. As
detailed in the facts recounted above and the stipulated
exhibits, WTC representatives thoroughly evaluated the business
trust proposals, raised questions, offered suggestions, and made
requests. Some of those suggestions or requests were accepted or
acquiesced in; others were not. Such a scenario bears the
earmarks of considered negotiations, not blind accommodation.
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