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stated below, we reject both arguments. The record here, as did
the record in Estate of Bigelow v. Commissioner, supra, supports
the finding, which we make, that RLP was formed to facilitate the
transfer of decedent’s property to decedent’s sons and
grandchildren primarily as a testamentary substitute, with the
aim of lowering the value of decedent’s gross estate by applying
discounts for lack of control and lack of marketability.
2. Retained Interests
Under section 2036(a)(1), decedent’s gross estate includes
the fair market value of transferred assets to the extent that
she retained possession or enjoyment of, or the right to income
from, the assets for her life or for any other period that does
not end before her death. In order not to have a retained
interest described in section 2036(a)(1), decedent must have
“absolutely, unequivocally, irrevocably, and without possible
reservations,” parted with all of her title, possession, and
enjoyment of the transferred assets. See Commissioner v. Estate
of Church, 335 U.S. 632, 645 (1949). Decedent will have retained
such an interest if there was an express or implied agreement
among the parties to the transfer at the time of transfer that
the transferor retain the possession or enjoyment of, or the
right to the income from, the transferred property. See Estate
of Bigelow v. Commissioner, supra; Estate of Thompson v.
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