- 40 -
like that of the taxpayers in Hewitt v. Commissioner, 109 T.C.
258 (1997).
Petitioners, during 1995, consulted with Attorney Kelley
concerning income and estate tax planning. Attorney Kelley
directed and assisted petitioners in setting up an FLP for each
couple. Each couple also established a corporation to be the
general partner of their FLP, and the individuals were made the
limited partners of their respective partnerships. The general
partner (the controlled corporation of each couple) had operating
authority over each FLP. A limited partner’s interest could not
be transferred without permission of all other partners in the
FLP. Each couple contributed their Beneco stock, along with
other assets, to their FLP in 1995.
Attorney Kelley assisted petitioners with their donations of
interests in their limited partnerships to CCF. CCF anticipated
that petitioners would make gifts of interests in the FLPs in
1995 and in future years. It was understood that the transferred
FLP interests would be reacquired from CCF (or other charitable
donee), and irrevocable life insurance trusts were created that
would be used to fund the reacquisition of the contributed
interest upon each donor’s death.
At the time of the contributions of the FLP interests, CCF,
and later Crossmen Ministries, received FLP interests that could
not be transferred without petitioners’ and their wholly owned
Page: Previous 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 Next
Last modified: March 27, 2008