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An option trading account at Legg Mason was created on or
about May 9, 1994, and Mrs. Lundgren signed the account’s
documentation on May 10, 1994. The account statements during the
years at issue list Raymond F. Roemer as Trustee, although by
then he was deceased. On April 18, 2001, the Legg Mason account
reflected a sale of a U.S. Treasury note with a face value of
$20,000 for $20,430.
In 2001, Lucky Kirt Trust disbursed $195,000 to Mr. Lundgren
allegedly as a “gentleman’s loan” for farming purposes. The
“loan” was not memorialized in a written agreement, and there was
no repayment schedule, no final payoff date, and no interest
rate.
Lucky Kirt Trust also disbursed money to petitioners’
daughter to buy a car. The “loan” to petitioners’ daughter was
not reduced to a written agreement. Although Mr. Chisum
confirmed that regular payments were made on this loan, he did
not provide any proof of the payments, and there was no interest
rate applied to the loan. Mr. Chisum did not charge interest on
these loans.
Petitioners farmed the land held by Lucky Kirt Trust as
tenant farmers under a crop shares agreement, which provided for
petitioners to live on the land and bring in crops in lieu of
rent payments. The crop share was adjusted to reflect the
profitability of the crops and approximate rental value of the
land. The crop shares agreement was not in writing.
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Last modified: May 25, 2011