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1976). Thus, “Enjoyment as used in the death tax statute is not
a term of art, but is synonymous with substantial present
economic benefit.” Estate of McNichol v. Commissioner, 265 F.2d
667, 671 (3d Cir. 1959), affg. 29 T.C. 1179 (1958). Retained
enjoyment may exist where there is an express or implied
understanding at the time of the transfer that the transferor
will retain the economic benefits of the property. Guynn v.
United States, 437 F.2d 1148, 1150 (4th Cir. 1971); Estate of
Rapelje v. Commissioner, 73 T.C. 82, 86 (1979).
Decedent’s retention of the property’s income stream after
the property was transferred is “very clear evidence that the
decedent did indeed retain ‘possession or enjoyment.’” Estate of
Hendry v. Commissioner, 62 T.C. 861, 873 (1974). Decedent
continued to receive the $9,000 monthly rent payments from
Financial Solutions, Ltd., and enjoy the economic benefits of the
61st Street property. Mr. Stewart contends that he and decedent
agreed they would share the income and expenses, in a manner
reflective of their ownership interests, relating to the 61st
Street property (i.e., Mr. Stewart would receive 49 percent of
the income and pay 49 percent of the expenses) and the East
Hampton property (i.e., Mr. Stewart would receive 50 percent of
the income and pay 50 percent of the expenses). At the end of
2000, according to Mr. Stewart, he and decedent intended to
perform a financial reconciliation to ensure that the proper
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