Adequate and Full Consideration Exception

Question 1

Retained Interest statutes subject to the adequate and full consideration exception and justification.

Answer 1

2035, 2036, 2037, and 2038.
There is no need to analyze retained interest issues if transaction does not deplete the future estate.

Question 2

How to meet Bona Fide sale requirement?

Answer 2

Helps to make sure money is actually exchanging hand. Don’t want sale to be sham or illusory.

Tax court ruled promissory not illusory because decedent forgave annual payment every year.