-20-
Some factors we have previously considered important in
assessing whether a decedent impliedly retained the right to
possession and enjoyment of the transferred assets include
commingling of funds, a history of disproportionate
distributions, testamentary characteristics of the arrangement,
the extent to which the decedent transferred nearly all of his or
her assets, the unilateral formation of the partnership, the type
of assets transferred, and the personal situation of the
decedent. Estate of Rosen v. Commissioner, supra; Estate of
Harper v. Commissioner, T.C. Memo. 2002-121. The likelihood that
an implied agreement will permit the individual to keep using
contributed assets is the greatest when the individual conveys
nearly all of his or her assets. Estate of Reichardt v.
Commissioner, supra; Estate of Rosen v. Commissioner, supra.
Respondent argues that the facts and circumstances indicate
Mrs. Erickson retained the right to possess or enjoy the assets
transferred to the Partnership pursuant to an implied
understanding or agreement among the parties to the transactions.
We agree.
We are troubled by the delay in transferring the assets to
the Partnership. The delay suggests that the parties did not
respect the formalities of the Partnership. Specifically, the
partnership agreement provided that the partners would contribute
assets concurrently with the execution of the partnership
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Next
Last modified: November 10, 2007