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

Business Valuation Update BVLaw
Legal and Court Case Update
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)


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.

See Also

Church v. United States (I)

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