Estate of Charles E. Reichardt - Page 17




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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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