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Bard property) at the time of his death.2 We must decide
whether, at the time of decedent's death, the interest in the
Bard property was decedent’s separate property or community
property.
II. Relevant Law
A. State Law
We look to State law to determine property rights. Estate
of Rowan v. Commissioner, 54 T.C. 633, 639 (1970) (citing
Commissioner v. Estate of Bosch, 387 U.S. 456 (1967)). “The
realty of a decedent is disposed of in accordance with the laws
of the state in which it is located.” In re Herbert’s Estate,
109 P.2d 729 (Cal. Ct. App. 1941); cf. Cal. Civ. Code sec. 755
(West 1982) ("Real property within this State is governed by the
law of this State, except where the title is in the United
States."). The Bard property is located in California, and,
consequently, we must look to California law to determine how it
passed on decedent’s death. If the Bard property was decedent's
separate property, then one-third of his interest in that
property passed to petitioner under the intestate succession law
2 The record is ambiguous as to whether, at the time of
decedent's death, the Bard property was owned by the Windmill
Ranch partnership (the partnership). Petitioner clearly believes
that the Bard property was not owned by the partnership, although
she has not proposed a finding to that effect. At trial,
respondent's counsel stated that she had no knowledge that the
Bard property had ever been deeded to the partnership. We shall
assume, without deciding, that the Bard property was not owned by
the partnership.
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