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On September 3, 1997, the partnership agreed to sell the
Padaro Lane property for $1,475,000. The partnership received
$949,490.33 from the sale on November 21, 1997. The partnership
began distributing the proceeds to the partners, including
decedent’s trust, by December 1997.
H. The Partnership’s Financial Activity
All of the rental receipts from the Padaro Lane property
were deposited into partnership bank accounts, and the expenses
for the Padaro Lane property were paid from those accounts.
Although decedent was obligated to make the monthly payments on
the Great Western Bank loan, the partnership made those payments.
The partnership, however, did not adjust the capital account of
decedent’s trust for payment of principal as required by the
partnership agreement. Decedent’s trust made the monthly
payments on the Union Bank line of credit.
From April 6, 1995, to August 8, 1997 (when decedent died),
Mr. Bigelow transferred funds between the partnership and
decedent’s trust 40 times. When decedent died, decedent’s trust
owed Spindrift $3,500. Mr. Bigelow transferred funds from
decedent’s trust to the partnership soon after it was formed to
pay the property taxes on the Padaro Lane property. He
transferred funds from the partnership to decedent’s trust to
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Last modified: May 25, 2011