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endorsed the checks payable to the eight Weinstock Trusts, and
each of the other donees endorsed the checks payable to them.
The endorsed checks were deposited into the Jack K. Holland-Agent
account (Holland-Agent account) at First National. A check for
$120,000 was then drawn on that account to purchase a $120,000
certificate of deposit (CD) for the donees. Jack then pledged
the CD as security for his guarantee as decedent's agent.
The Certificates of Deposit
Decedent, Lewis, Betty, and Jack discussed how the gifts
were to be used prior to decedent's taking out the loan or making
the gifts. Although the issuance of the loan proceeds, the
pooling of the gifts, and the execution of the pledge all
occurred during the same visit to First National, both the
parents of the minor beneficiaries and the adult beneficiaries of
the Weinstock Trusts were given actual notice that the gifts were
being made, and that they had the right to the immediate use of
the money.10 The donees unanimously agreed to pool their gifts
in order to realize a greater return on their investments.
Pooling the gifts to purchase the CD and pledging it to
secure Jack's guarantee of the note benefited both the donees and
the donor. The interest rate paid on a $120,000 CD was higher
than the interest rate paid on a CD in an amount less than
$100,000. Thus, by pooling their gifts, the donees were able to
10 Decedent's children are the parents of the
beneficiaries of the eight Weinstock Trusts.
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