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the possession or enjoyment of, or the right to the income from,
the transferred property. See sec. 2036(a); see also Estate of
Bigelow v. Commissioner, 503 F.3d 955 (9th Cir. 2007), affg. T.C.
Memo. 2005-65. A decedent’s gross estate does not include the
value of property transferred pursuant to a bona fide sale for
adequate and full consideration. See sec. 2036(a); see also
Estate of Bigelow v. Commissioner, supra at 963.
The estate contends that the values of the assets decedent
transferred to RLP are not included in her gross estate under
section 2036(a)(1) because she relinquished enjoyment of, and the
right to the income from, the transferred assets, and
alternatively, she transferred the assets to RLP in a bona fide
sale for adequate and full consideration.7 For the reasons
7 The estate further argues that sec. 2036(a), to the extent
it applies to this case, applies only to decedent’s transfer of
the limited partner interests to her sons and not to her transfer
of the assets to RLP. To this end, the estate asserts, decedent
received 100 percent of the interests in RLP in exchange for the
assets, which means that the value of decedent’s gross estate was
not depleted by that transfer but was depleted when decedent gave
away the limited partner interests. See Estate of Magnin v.
Commissioner, 184 F.3d 1074, 1079 (9th Cir. 1999) (stating that
the “purpose underlying the section [2036(a)] is to prevent the
depletion of the decedent’s gross estate”), revg. on other
grounds T.C. Memo. 1996-25. As detailed herein, we find on the
basis of the credible evidence at hand that decedent’s transfer
of her assets to RLP and her ensuing gifts of the limited partner
interests to her sons were part of a single plan to minimize
decedent’s Federal estate tax, lacked a significant nontax
business purpose, and accomplished no genuine pooling of assets.
On the basis of those findings, we reject this argument.
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