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1. Impoverishment of Decedent
The estate contends that the transfer of the Padaro Lane
property had no adverse financial effect on decedent because she
received partnership interests in the partnership that held the
Padaro Lane property which were, when she received them, equal in
value to the transferred property. The estate contends that
decedent’s financial situation worsened only when her residential
care insurance policies expired in 1995 and 1996.
We disagree. Before the Padaro Lane property was
transferred to the partnership, decedent met her financial
obligations.5 After the transfer, decedent no longer received
rent from the property, but she remained liable for both the
Great Western Bank loan and the Union Bank line of credit. The
transfer of the Padaro Lane property to the partnership left
decedent unable to meet her financial obligations because her
reduced income of $5,800 was insufficient to pay her reduced
expenses of $7,000.
After decedent’s residential care insurance benefits expired
in August 1996, Mr. Bigelow informed the trustee of the 1954
5 When decedent formed the partnership in 1994, she had
monthly income of $9,300 ($3,600 from two residential care
insurance policies, $3,500 from rent paid on the Padaro Lane
property, and $2,200 from other sources). At that time, her
monthly expenses averaged $8,350 ($3,600 for assisted living
expenses, $2,750 for the Great Western Bank loan and Union Bank
line of credit, $1,350 for property taxes and insurance, and $650
for other expenses).
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