Estate of Lillie Rosen, Deceased, Ilene Field and Herbert Silver, Co-Personal Representatives - Page 43

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          relationship to her assets after the transfer.  See Estate of               
          Schutt v. Commissioner, T.C. Memo. 2005-126; Estate of Korby v.             
          Commissioner, T.C. Memo. 2005-103; Estate of Korby v.                       
          Commissioner, T.C. Memo. 2005-102; Estate of Schauerhamer v.                
          Commissioner, T.C. Memo. 1997-242.  We also note that during the            
          first 4 years of the LRFLP’s existence, i.e., the last 4 years of           
          decedent’s life, decedent’s daughter (as decedent’s attorney-in-            
          fact) gave away almost 65 percent of decedent’s limited                     
          partnership interest.                                                       
               Fifth, after the transfer of the assets to the LRFLP,                  
          decedent was unable to meet her financial obligations without               
          using funds of the LRFLP.  In fact, all of the funds that were              
          withdrawn from the LRFLP were used for decedent’s benefit.                  
          Before decedent died, that benefit included the payment of her              
          personal living expenses and the carrying out of her intent to              
          make significant annual gifts to each of her descendants.  After            
          decedent died, that benefit included the satisfaction of the                
          bequests set forth in the Lillie Investment Trust, the payment of           
          costs related to administering her estate, and the satisfaction             
          of her Federal estate tax liability.  The use of the LRFLP’s                
          funds to satisfy those obligations of decedent is inconsistent              
          with a finding of a bona fide sale.  See Estate of Thompson v.              
          Commissioner, 382 F.3d 367 (3d Cir. 2004); Estate of Korby v.               
          Commissioner, T.C. Memo. 2005-103; Estate of Korby v.                       






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