Estate of Morton B. Harper, deceased, Michael A. Harper, Executor v. Commissioner of Internal Revenue
Published: Aug. 19, 2000 | Result Date: Jun. 30, 2000 | Filing Date: Jan. 1, 1900 |Case number: 1933698 Verdict – $0
Facts
On Dec. 18, 1990, Morton Harper created a revocable inter vivos trust. The trust named Morton Harper as trustee and designated his children, Michael and Lynn as successor trustees. The assets held by the trust consisted of marketable securities and mutual funds, plus a note receivable for $450,000. On Jan. 1, 1994 Michael and Lynn entered into an agreement that created a California limited partnership. Michael and Lynn became general partners with interests of .4 and .16 percent respectively, and the trust became the sole limited partner eith an interest of 99 percent. On July 1, 1994, the parties entered into an amendment to the partnership agreement that created two classes of limited partnership interest. On Feb. 1, 1995, Morton Harper died. On the Federal Estate Tax return filed, Morton Harper's estate reported a 39 percent Class A limited partnership interest in the partnership with a value of $410,100, after a 35 percent discount.
Result
The court ordered that the limitations on liquidation contained in the partnership agreement were not applicable restrictions within the meaning of Section 2704(b) and, must be taken int account in valuing the limited partnership interests at issue. The respondent's motion for partial summary judgment was denied.
Other Information
<P>The respondent's motion for partial summary judgment was denied.</P>
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