Estate of John Kenly, Deceased, Betty B. Kenly, Personal Representative - Page 22

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            an interest in the New Mexico ranch.  (Hereafter, the Bard                                    
            property and its predecessors, the Windmill Ranch and the Dunlap                              
            property, but not the New Mexico ranch, will be referred to as                                
            the “successor properties”.)  We have determined that, upon                                   
            acquisition, decedent’s interest in the New Mexico ranch was his                              
            separate property.  Under Arizona law, when one spouse uses                                   
            separate property to purchase new property, the new property                                  
            remains separate property.  Nace v. Nace, 448 P.2d at 79.  Thus,                              
            unless the character of decedent’s interest in either the New                                 
            Mexico property or any of the successor properties changed to a                               
            community interest, the Bard property was decedent’s separate                                 
            property.                                                                                     
                  Petitioner has failed to show such a change.  The various                               
            deeds and other documents set forth or discussed in our findings                              
            of fact speak against a change.  John Hughes, who represented                                 
            decedent and petitioner in certain of the transactions here                                   
            involved, testified that decedent had told him that decedent’s                                
            interests in the New Mexico ranch and Dunlap property were                                    
            community property.  On the other hand, Robert Harman, a real                                 
            estate broker who brokered the exchange of the Dunlap property                                
            for the Bard property and the purchase of the 125-acre Bard                                   
            parcel, testified that decedent had told him that his interests                               
            in those properties were to be his sole and separate interests.                               
            Petitioner testified that she believed that she had a community                               
            interest in the New Mexico ranch and the successor properties,                                




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