This section contains the nature of the case and procedural background.

Brooke (P) was a doctor, and by 1959 his family included six children from 6 to 14 years of age. As a gift P deeded to his children real estate which was improved by a pharmacy, a rental apartment, and the offices of his medical practice. After the conveyance, the Montana Probate Court appointed P guardian of the children. In this capacity, P collected rents from the pharmacy and apartment. Without a written lease, P also paid himself as guardian the reasonable rental value of his medical offices. The rents collected were applied to the children’s insurance, health, and education. P paid for school tuition, music and swimming lessons, public speaking lessons and even a car for the oldest and expenses to New Mexico for his asthmatic child.

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