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houses and canceled checks that decedent’s daughter gave him.
The accountant obtained all other information by talking to
decedent’s daughter and to decedent’s son-in-law. The accountant
forwarded the completed returns to decedent’s daughter, who
signed them on behalf of the LRFLP. No books were maintained as
to any activity of the LRFLP, and the primary records that were
kept by or for the LRFLP were the Merrill Lynch account records,
the checkbook (and related canceled checks), and the bank and
brokerage statements for the accounts bearing the name of the
LRFLP.9 No formal or documented meetings were held between the
general partners of the LRFLP.
The following table is a summary of the assets held in the
Merrill Lynch LRFLP account on five dates:
11/29/96 12/31/97 12/31/98 12/31/99 06/30/00
Equities $392,234 $670,234 1,056,556 1,096,826 1,185,247
Mutual funds 13,514 47,156 75,886 78,604 118,014
Securities 92,877 124,785 519,546 477,077 39,724
Municipal bonds 1,673,052 1,489,675 1,317,579 1,184,717 1,146,119
Corporate bonds -0- -0- 100,299 126,245 187,370
CD’s, notes 20,049 -0- -0- 9,852 10,197
Cash -0- 626 3,384 69,676 510,335
Total 2,191,726 2,331,850 3,073,250 3,042,997 3,197,006
Although the amounts invested in equity versus debt changed
somewhat from year to year, the investment strategy of the
general partners of the LRFLP followed that of decedent when she
had managed her investments. In addition to this account,
decedent’s daughter also maintained at First National Bank of
9 Decedent’s children each received copies of the referenced
statements.
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