In Stangi II the FLP paid all of the 24 hour homecare costs of the Decedent immediately prior to his death as well as for his surgery expenses and the Decedent’s funeral, estate administration expenses and the estate and inheritance taxes. The Court relied on the fact that the Corporate General Partner although not technically controlled by the Decedent (only a 47% ownership interest), had entered into a management agreement with his son who was the holder of the Decedent’s Power of Attorney so that the disbursements of funds from the FLP were essentially the actions of the Decedent acting through his Attorney in Fact. The Strangi II opinion is viewed by many practitioners as a significant expansion of the reach of 2036(a)(2) because the Court pointed out that the formalities were adhered to..
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