Tassi v. Tassi

Facts

W and H were married on January 31, 1942, and lived together until H died on February 19, 1953. At the time of the marriage, H owned a wholesale meat business which he had purchased in 1938 for $400 or $500. The book value of the business at the time of H's marriage was $14,519.95. After the marriage, W to work for about 10 months, and thereafter worked part-time in H's business. The company account books contained an entry in 1943, indicating an additional investment at that time of $27,615.01, but there was no direct evidence as to the source of those funds. Income tax returns reported H indicated that the business earned $419,993.17 during the 11 years of marriage. The evidence showed that H withdrew from the business $447,805.75 from the date of marriage until his death. In 1947 and 1948 H opened seven trustee accounts, three for W, totaling $73,962.49, and four for his brother totaling $ 122,514.26. Three days before H's death, Edwin (D) wrote himself a $20,000 check on H's bank account. In 1951 decedent gave to d five $1,000 United States Bearer Bonds, and in 1946 purchased for him 300 shares of corporate stock. All of these transactions were without W's knowledge or consent. The trial court found that the source of the funds for the accounts and purchased the securities and bonds was the earnings and profits of a wholesale meat business known as Associated Meat Company. H set up the trustee bank accounts with the intention of passing the money to the beneficiaries with a minimum of expense and delay in the event of his death. It found further that the meat company was H's separate property and that the earnings and profits from the business 'are allocable 27% to the community property of H and W and 73% to the separate property of H. It found that the transfers to D 'were community property to the extent of 27% thereof. W appealed.

Issues

Rule of Law

Holding and Decision

Legal Analysis

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