¹Est. of Dorothy Morganson Schauerhamer, TC Memo 1997-242.

²Est. of Charles E. Reichardt, 114 TC 144 (2000).

³Est. of Morton B. Harper, TC Memo 2002-121.

⁴Est. of Albert Strangi, TC Memo 2003-145, appeal pending to the Fifth Circuit.

⁵In this item, FLP also refers to a limited liability company; in general, the discussion applies to both types of entities.

⁶See Est. of Schauerhamer, note 1 supra. An analysis of the decisions in notes 14, supra, produces a list of facts and circumstances that show an implied understanding to retain economic benefit.

⁷For an excellent discussion, see Mulligan, Courts Err in Applying Section 2036(a) to Limited Partnerships, 30 ETPL 486 (October 2003).

⁸Est. of Eugene E. Stone III, TC Memo 2003-309.

⁹The Fifth Circuits rulings are critical, because a disproportionately high number of FLPs are formed within its geographic jurisdiction (due to its previous taxpayer-friendly rulings on FLP issues). In addition, its much-awaited ruling in Est. of Strangi, note 4 supra, may make it the first appeals court to weigh in on the issue.

¹⁰ In Est. of Harper, note 3 supra, the Tax Court noted that commingling of funds is the most heavily relied upon factor in Est. of Reichardt, note 2 supra, and Est. of Schauerhamer, note 1 supra.

¹¹See the discussion in the Appendix, under Accounting entries, on the effect of reclassifying entries.

¹²Marian A. Byrum, 408 US 125 (1972).

¹³See Est. of Reichardt, note 2 supra.