- 66 -
Commissioner, T.C. Memo. 2005-65; Estate of Stone v.
Commissioner, T.C. Memo. 2003-309.
Petitioner asserts that decedent’s only interest in the
transferred assets was as a beneficiary of the Sylvia Gore
Revocable Trust, which held a 32.667-percent limited partnership
interest in GFLP. Because GFLP is a separate legal entity formed
in compliance with Oklahoma law, petitioner argues that decedent
relinquished all control, possession, enjoyment, or right to
income upon the alleged transfer of the Marital Fund assets to
GFLP. Petitioner argues that decedent retained no benefit or
control over the assets and that TCO controlled or managed the
GFLP assets during decedent’s life. Additionally, petitioner
argues that decedent did not execute or contemplate an agreement
reserving any control of the transferred assets.
Decedent, however, did not part with possession or enjoyment
of the property purportedly transferred to GFLP. At the time of
decedent’s death, GFLP did not hold title to any of the Marital
Fund assets. From its formation until the date of decedent’s
death, GFLP did not engage in any business or investment
activity. Only after decedent’s death and long after GFLP’s
formation were accounting records created purporting to show that
decedent transferred a series of Marital Fund assets to GFLP.51
51Accounting manipulations occurring after decedent’s death
cannot refute the existence of an implied agreement permitting
(continued...)
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