Church v. United States (I)

Full Text of Court Cases
January 18, 2000
0291 General Farms, Primarily Livestock and Animal Specialties
112990 All Other Animal Production
estate and gift taxation
income approach, discount for lack of marketability (DLOM), market approach, partnership agreement, discount for lack of control (DLOC), undivided interest

Church v. United States (I)
2000 U.S. Dist. LEXIS 714
Federal Court
United States District Court
Bruce Johnson (for plaintiff)


At issue is whether a partnership transaction was entered into for no purpose other than to reduce the taxation of Mrs. Church's estate.

See Also

Taxpayer Victory on FLP Recognition

On Jan. 18, 2000, Judge Orlando Garcia of the United States District Court ruled in favor of the taxpayer in the first family limited partnership case to be tried in a federal district court.

Family Limited Partnership Formed Two Days Before Death Not Sham Transaction

The primary issue in this estate tax refund action was whether Stumberg Ranch Partners Ltd. was formed for a bona fide business purpose, or was a sham transaction designed to avoid estate and gift taxes.

No Gift Tax Due When Partnership Was Formed Two Days Before Death

The U.S. District Court for the Western District of Texas rejected the IRS' position that gift tax was due on the formation of a family limited partnership formed two days before the decedent's death.