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agreement, yet no assets were transferred then; many transfers
occurred only 2 days before Mrs. Erickson died. Although the
Partnership had separate accounts from its partners, the record
reflects that the partners were in no hurry to alter their
relationship to their assets until decedent’s death was imminent.
The Partnership also had to provide the estate with funds to
meet its liabilities. This fact is telling in two respects.
First, disbursing funds to the estate is tantamount to making
funds available to Mrs. Erickson (or the estate) if needed.
Second, although the estate designated the funds disbursed to the
estate as a purchase of Mrs. Erickson’s home and a redemption of
units rather than a distribution, the estate received
disbursements at a time that no other partners did. These
disbursements provide strong support that Mrs. Erickson (or the
estate) could use the assets if needed.
Finally, the Partnership had little practical effect during
Mrs. Erickson’s life, particularly because the Partnership was
not fully funded until days before she died. Indeed, the
Partnership was mainly an alternate method through which Mrs.
Erickson could provide for her heirs. Karen, acting on behalf of
Mrs. Erickson, transferred substantial amounts of her partnership
interests in making the grandchildren’s gifts 2 days before she
died. Moreover, Mrs. Erickson had been in declining health for
some time. She was diagnosed with Alzheimer’s disease in March
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Last modified: November 10, 2007