Case: Transfer of Limited Partnership Interest, Not Assignee Interest (T.C. Memo) (IRC §2038)

Decedent’s lifetime transfer to a revocable trust was that of an 88.99% limited partnership interest rather than an assignee interest because the transfer met all the requirements of the partnership agreement and the substance of the transfer supported such classification, the U.S. Tax Court held in a memorandum opinion. The court noted that the decedent’s daughter was both the managing member of the limited partnership’s general partner and the trustee of the revocable trust, so that information restrictions for transferees of partnership interests had no effect. Further, the partnership did not hold meetings or votes after the partnership agreement was ...