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duties did not deter him from continuing to possess and enjoy the
house in which he lived or the other assets he conveyed to the
partnership. Decedent's children, as cotrustees, did nothing to
preclude him from doing so. This suggests that decedent and his
children had an implied agreement to allow decedent to continue
to enjoy partnership property throughout his life.
Petitioner points out that decedent’s children could have
revoked his management powers. However, they did not. This
suggests that they and decedent had an implied agreement that he
could continue to possess, enjoy, and retain the right to income
from all of the property that he conveyed.
Decedent used at least $8,116 of partnership funds in 1993
for personal purposes and $13,507 in 1994. Petitioner contends
that, at the end of 1993 (before decedent died) and 1994 (after
decedent died), Hannah’s firm prepared yearend adjusting entries
which reclassified items of income and expense as relating to
decedent and the partnership. Petitioner contends that the
adjusting entries show there was no implied agreement for
decedent to continue to enjoy partnership property.
We disagree. The 1993 yearend and 1994 post mortem
adjusting entries made by Hannah’s firm were a belated attempt to
undo decedent’s commingling of partnership and personal accounts.
There is no evidence that the partnership or decedent transferred
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