What's Implied in BongardWhat's Implied in Bongard

Rorie M. Sherman Editor in Chief

From David A. Handler of Kirkland & Ellis in Chicago we have this report on the latest development in the Tax Court's understanding of the Internal Revenue Code Section 2036(a): On March 15, the court issued a decision in Estate of Wayne C. Bongard v. Comm'r, 124 T.C. No. 8; No. 6141-03, finding that a decedent hadn't transferred property to his family partnership “in a bona fide sale for an adequate consideration,” and that he'd retained an “implied” beneficial enjoyment of the assets transferred to the family limited partnership (FLP); therefore the FLP's assets had to be included in his estate. This meant $101 million more was included in Wayne Bongard's estate and his heirs owed an additional $52 milli...