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trust. Decedent was the only trustee to open brokerage accounts
or sign partnership checks. He did not open any accounts for the
trust.
Decedent commingled partnership and personal funds. He
deposited some partnership income in his personal account. He
used the partnership’s checking account as his personal account.
He lived at 214 Encino without paying rent before or after he
transferred it to the trust and to the partnership. Decedent’s
relationship to the assets at issue remained the same after he
transferred them. If a decedent's relationship to assets remains
the same after a transfer as it was before a transfer, the value
of the assets may be included in the decedent's gross estate.
See sec. 2036(a)(1); Guynn v. United States, supra; Estate of
Hendry v. Commissioner, supra at 874; Estate of Schauerhamer v.
Commissioner, T.C. Memo. 1997-242. Here, nothing changed after
decedent transferred his interests in the property to the trust
and the partnership, except legal title.
Petitioner contends that decedent had no relationship to any
of the real property except for 214 Encino and the Routt rental
property because Welch and the Estate of Jessie Dennett managed
those properties. We disagree. Section 2036 applies not only if
a transferor retains possession or enjoyment of property, but
also if a transferor retains the right to income from the
property. See sec. 2036(a)(1). We believe that decedent and his
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