-62-
debt. See id. at 630; Estate of Mixon v. United States, 464 F.2d
at 409.
The only partner of the LRFLP who used its funds was
decedent.
This factor weighs toward a finding that decedent’s use of
the funds of the LRFLP did not create bona fide debt or, at best
for petitioners, is irrelevant.
vii. Presence or Absence of Security
The absence of security for the repayment of transferred
funds weighs strongly against a finding of bona fide debt. See
Roth Steel Tube Co. v. Commissioner, 800 F.2d at 632; Lane v.
United States, supra at 1317.
The promissory notes were unsecured. While petitioners
claim to the contrary, stressing the fact that the amounts of the
“loans” were less than the value of decedent’s limited
partnership interest, the mere fact that the balance of the
transfers was less than the presumed fair market value of
decedent’s interest in the LRFLP does not necessarily make the
transfers secured debt. Such is especially so where, as here,
decedent’s daughter conceded at trial that she loved her mother
and indicated that she would probably have continued to use the
funds of the LRFLP to pay her mother’s living expenses as
necessary.
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