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capital account balances. Hence, existing precedent shows that
decedent is considered to have received adequate and full
consideration as used in sections 2036(a) and 2038 for his
transfers to Schutt I and II.
II. Conclusion
The Court has concluded in the unique circumstances of this
case that decedent’s transfers to Schutt I and II constitute bona
fide sales for adequate and full consideration for purposes of
sections 2036(a) and 2038. Because the record supports finding
that both prongs of this test have been met, respondent has
failed to carry the burden of proving otherwise. Accordingly,
the transfers to Schutt I and II are excepted from inclusion in
decedent’s gross estate under either section 2036(a) or 2038.
The Court therefore need not probe other arguments by the parties
with regard to the application of these statutes.
To reflect the foregoing and to give effect to the parties’
stipulations,
Decision will be entered
under Rule 155.
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