In Re Estate Of Hanau

Facts

In 1974, Robert and D were married in Illinois. Robert and D each had substantial amounts of separate property before the marriage, and at all times kept such property under their names. Five years later they moved to Texas. While married in Illinois, Robert acquired stock with his separate property, Under Illinois common law, this would have remained his separate property. Robert died in Texas in 1982 and D was granted letters testamentary on May 10, 1982. Robert left this separate property to his children from a previous marriage. On May 2, 1983, P, the decedent's son, filed a complaint in which he specified acts which he contended were a violation of D's fiduciary duty and he raised the issue of the characterization of certain property. P requested that D be removed as independent executrix and that he be placed in her stead. D requested in part declaratory relief with regards to characterizing certain property as community property. The parties stipulated that the stocks acquired before marriage were Robert's separate property and that stocks acquired while married in Texas were community property. The only question presented to the trial court was the status of those stocks bought during the marriage in Illinois using Robert's separate property. The trial court granted a partial summary judgment to D on the characterization issue. The court ruled that all the amounts that accrued during the marriage would be considered as community property in Texas, despite their characterization as separate property outside the state. The court of appeals affirmed in part and reversed in part. It held that most of the stocks should have been classified as separate property, and rendered judgment that they go to Ps, the son, and daughter. On one stock it held that a proper tracing could not be shown so as to classify it as separate property. Both parties appealed.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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