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Estate of Austin
California Court of Appeal
113 Cal. App. 3d 167 (1980)
Lucille Austin executed a will giving her friend, Betty Guldberg (plaintiff), an oil painting and a promissory note under which Gary Grenz owed money to Austin. Austin’s will also made numerous specific legacies, i.e., gifts, and left Austin’s residuary estate to the Shrine Hospital for Crippled Children (the hospital) (defendant). Grenz paid off the promissory note’s balance early. Austin put this money, approximately $17,000, in a bank account that contained other funds. Austin then loaned $20,000 from that same account to the Inmans, again using a promissory note. After Austin’s death, the Inmans paid off their note, and the estate held the proceeds for distribution. Guldberg claimed that her gift of the Grenz note had changed form into the Inman note and that she was the beneficiary of the Inman note’s proceeds. However, the probate court found that the gift of the Grenz note had adeemed and that the residuary beneficiary, the hospital, should receive the Inman note’s proceeds. Guldberg appealed.
Rule of Law
Holding and Reasoning (Andreen, J.)
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