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espousal made solely to defend their claim to the legitimacy of
the transfer.
4. Retention of Possession or Enjoyment of Transferred Property
Petitioners next argue that decedent did not retain the
possession or enjoyment of, or the right to income from, the
transferred assets after her assets were transferred to the
LRFLP. We disagree. We find that decedent transferred her
assets to the LRFLP and retained the lifetime possession and
enjoyment of those assets pursuant to express or implied
understandings and agreements. In other words, we find that the
terms and conditions of the transfer of decedent’s assets to the
LRFLP were not the same as they would have been had unrelated
parties been involved in the same transfer. In fact, we find it
hard to conceive of unrelated parties’ engaging in such a
transaction.
Decedent’s daughter was decedent’s attorney-in-fact, and
decedent’s children were cotrustees of the Lillie Investment
Trust and general partners of the LRFLP. The LRFLP was funded
with liquid assets, and decedent’s children, as the Lillie
Investment Trust’s cotrustees, had a fiduciary duty to decedent,
in effect standing in her shoes. Given the additional fact that
the LRFLP agreement allowed decedent’s children, as general
partners, to make distributions to decedent when and in the
amount they pleased, we conclude that decedent had the same
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