-53-
decedent from continuing to enjoy her transferred assets. See
Estate of Disbrow v. Commissioner, T.C. Memo. 2006-34.
Petitioners assert that the distributions from the LRFLP to
decedent were actually loans that did not constitute enjoyment of
the underlying funds. We disagree. Petitioners bear the burden
of proving this assertion. See Rule 142(a)(1); Frierdich v.
Commissioner, 925 F.2d 180, 182 (7th Cir. 1991), affg. T.C. Memo.
1989-103 as amended by T.C. Memo. 1989-393; Roth Steel Tube Co.
v. Commissioner, 800 F.2d 625, 630 (6th Cir. 1986), affg. T.C.
Memo. 1985-58. As we understand their factual claim supporting
this assertion, neither decedent nor decedent’s children foresaw
that decedent would incur the amounts of health expenses that she
did after her assets were transferred to the LRFLP. We consider
this claim incredible. When the LRFLP was formed, decedent was
nearing 90 years old and suffering from dementia and Alzheimer’s
disease. The fact that an elderly individual in such a condition
could be expected to incur major health expenses in later years
cannot seriously be denied. Nor can it seriously be denied that
decedent enjoyed the capital of the LRFLP for the duration of her
lifetime and that decedent’s children, as the general partners of
the LRFLP, never intended to seek repayment of the “loans” during
decedent’s lifetime.
Moreover, we disagree with petitioners from a legal point of
view. Debt for Federal tax purposes connotes an existing,
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