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as an attempt to dodge the imminent imposition of the estate tax.
Cf. Robinson, 102 T.C. at 129 (even State-court-approved
allocations are disregarded if done “solely with a view to
Federal income taxes”).
We also find that Clyde had plenty of motivation to seek a
large portion of the settlement for himself. Remember that under
Ohio law parents have a statutory obligation to provide
continuing support to their minor children. Ohio Rev. Code Ann.
sec. 3103.03(A) (Anderson 2003). And medical care for Kimberly
was expected to cost around $30,000 a month. Given Clyde’s
obligation to support Kimberly until she was an adult, and in the
face of Kimberly’s enormously expensive round-the-clock care, it
seems quite reasonable for Clyde to have sought a large payout
and then to have provided part of it as a loan to a trust to
ensure money would be available. The allocation-plus-loan of $1
million can be seen as fulfillment of the parental duty that he
owed his daughter. Should the Hicks lose their health insurance,
or if Kimberly turned out not to qualify for Medicaid coverage,
the trusts and the Hickses would shoulder the financial burden.
But the Hickses’ lawyers foresaw a sea of troubles if that
happened. If there was too much money in the Management Trust,
Medicaid might swallow it all before Kimberly would become
eligible; but if too much money went to Clyde, it might end up
with unforeseen future creditors of his own if he met with bad
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