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the transfer must not have been a bona fide sale for adequate and
full consideration. Estate of Bongard v. Commissioner, 124 T.C.
95, 112 (2005).
The parties agree that Mrs. Erickson made an inter vivos
transfer of assets to the Partnership. We therefore consider
whether Mrs. Erickson retained rights or interests in the
property she transferred. If she did, we then must consider
whether Mrs. Erickson’s transfer meets the exception for bona
fide sales for adequate and full consideration.
A. Whether Mrs. Erickson Retained Possession or Enjoyment
of the Transferred Property
Property is included in a decedent’s gross estate if the
decedent retained, by express or implied agreement, possession,
enjoyment, or the right to income. Sec. 2036(a). The term
“enjoyment” in section 2036(a) is synonymous with substantial
present economic benefit, not speculative and contingent benefit.
Estate of Abraham v. Commissioner, 408 F.3d 26, 39 (1st Cir.
2005), affg. T.C. Memo. 2004-39; Estate of McNichol v.
Commissioner, 265 F.2d 667, 671 (3d Cir. 1959), affg. 29 T.C.
1179 (1958); Estate of Reichardt v. Commissioner, 114 T.C. 144,
151 (2000). Part of the possession and enjoyment of one’s assets
is the assurance that these assets will be available to pay debts
and expenses after death. Strangi v. Commissioner, 417 F.3d 468,
477 (5th Cir. 2005), affg. T.C. Memo. 2003-145.
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