In re Salvini’s Estate

In 1950, Jennie Klotsche, who was 90 years old, owned pastureland (the store property) that she wished to give to a married couple, Pete and Mary Salvini. Mary had been the executrix of Klotsche’s late husband’s will. Around the time that Klotsche wished to give the store property to the Salvinis, third parties Howard Gerritsen and his wife became interested in acquiring the then-vacant store property for the purpose of constructing a building and operating a store. Gerritsen could obtain a better interest rate on a construction mortgage if he owned the store property. An agreement was made and executed in which Klotsche conveyed the store property to the Gerritsens, who mortgaged it, constructed a building, and then conveyed title to the Salvinis, as husband and wife. The Gerritsens then leased the store property from the Salvinis. The Salvinis treated the store property as community property, and in 1958, when Mary executed a will, she did not list the store property as separate property. Mary later revoked all prior wills and died intestate, survived by Pete and Mary’s mother, Margaret Scanlon (defendant). Mary’s estate (plaintiff) sought to distribute the store property entirely to Pete, consistent with characterization as community property. Scanlon objected, arguing that the store property was Mary’s separate property and, as such, should be distributed in equal halves to Pete and Scanlon. The trial court found that the store property was community property and distributed it to Pete. Scanlon appealed.