Estate of Lillie Rosen, Deceased, Ilene Field and Herbert Silver, Co-Personal Representatives - Page 41

                                         -41-                                         
               Second, the partners of the LRFLP did not negotiate or set             
          any of the terms of the LRFLP, and decedent’s daughter (as                  
          decedent’s attorney-in-fact, cotrustee of the Lillie Investment             
          Trust, and general partner of the LRFLP) stood on all sides of              
          the transaction.  See Estate of Strangi v. Commissioner, 417 F.3d           
          468 (5th Cir. 2005); Estate of Hillgren v. Commissioner, T.C.               
          Memo. 2004-46; Estate of Harper v. Commissioner, supra.  Feldman            
          singlehandedly set up everything connected with the LRFLP without           
          first discussing the matter with any of the partners.  See Estate           
          of Harper v. Commissioner, supra; Estate of Korby v.                        
          Commissioner, T.C. Memo. 2005-103; Estate of Korby v.                       
          Commissioner, T.C. Memo. 2005-102.  He decided who should be the            
          general and limited partners and how much each partner would                
          contribute to the LRFLP.  He represented each initial partner in            
          the formation of the LRFLP, and he chose the limited partnership            
          form solely so that decedent or her estate could claim discounts            
          on the proportionate values of the assets that were reflected in            
          the partnership interests that were either the subject of gifts             
          or included in decedent’s gross estate.  As decedent’s daughter             
          conceded at trial:  Feldman “drew up the partnership agreement,             
          and he was the one who told us what to do and how to do it.”                
               Third, while the LRFLP agreement was signed on July 31,                
          1996, decedent did not make her initial contribution until                  
          October 11, 1996, and decedent’s children did not make their                






Page:  Previous  31  32  33  34  35  36  37  38  39  40  41  42  43  44  45  46  47  48  49  50  Next

Last modified: May 25, 2011