- 67 -
Decedent individually or through Ms. Powell as attorney-in-fact
continued to receive all of the income from the property
transferred to GFLP, directed its deposit, and benefited from its
use without restriction. Ms. Powell continued using Marital Fund
assets allegedly transferred to GFLP for decedent’s benefit.
Decedent’s access to the assets was without restriction, allowing
decedent to maintain the same relationship to her assets as
existed before the alleged transfer to GFLP.
The circumstances surrounding the alleged transfer and
subsequent use of the Marital Fund assets demonstrate an implied
agreement between decedent and her children. Accordingly,
because decedent continued to control and to use Marital Fund
assets after the alleged transfer to GFLP on January 8, 1997, the
assets transferred to GFLP are includable in decedent’s gross
estate under section 2036.
Decedent’s transfer of Marital Fund assets to GFLP also does
not qualify for the bona fide sale exception contained in section
2036(a). Decedent’s transfer did not occur through an arm’s-
length transaction because decedent essentially acquired her
interest from herself. See Estate of Harper v. Commissioner,
T.C. Memo. 2002-121. Decedent stood on both sides of the
transaction, and the partnership was formed without any
51(...continued)
the continued use of transferred assets. See Estate of Harper v.
Commissioner, T.C. Memo. 2002-121.
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Last modified: November 10, 2007