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partnerships earned income, however, decedent, in violation of
the partnership agreements, did not deposit the income into the
partnership accounts. Instead, she deposited the income into the
account she utilized as her personal checking account, where it
was commingled with income from other sources. Such deposits of
income from transferred property into a personal account are
highly indicative of "possession or enjoyment". Id.
Sharlet Schauerhamer (David's wife), Diane, and Sandra
testified at trial that they were aware that decedent was
depositing the funds into her personal, rather than a
partnership, account. Moreover, they acknowledged that the
formation of the partnerships was merely a way to enable decedent
to assign interests in the partnership assets to members of her
family. The assets and income would be managed by decedent
exactly as they had been managed in the past. Where a decedent's
relationship to transferred assets remains the same after as it
was before the transfer, section 2036(a)(1) requires that the
value of the assets be included in the decedent's gross estate.
Guynn v. United States, supra; Estate of Hendry v. Commissioner,
supra at 874.
Petitioner contends that decedent did not spend any of the
partnership funds for her personal benefit. Petitioner bases
this contention on bank statements relating to the account and
the testimony of Richard Haynie, decedent's accountant. Neither
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