- 13 -
Savings for the purpose of deferring the reporting of the
guaranteed tuition as income until the students passed the bar.
He contends that he deposited $50,000 of refundable tuition from
the guaranteed course offered during 1990 into the World Savings
account to be held in trust for the guaranteed students until
they took the bar examination. Petitioner has attempted to
explain his failure to deposit the purported trust property,
i.e., the $30,000 in tuition from the winter 1992 guaranteed
course, into the alleged trust account. He contends that because
he had previously deposited $50,000 into the World Savings
account and did not withdraw the money to pay refunds to failing
students in the previous year, there was sufficient money in the
account to cover tuition refunds for the winter 1992 courses.
Petitioner argues that it was unnecessary for him to deposit the
$30,000 in tuition from the winter 1992 guaranteed course into
the alleged trust account.
There was some confusion at trial as to which parties,
petitioner or the guaranteed students, were the settlors and
beneficiaries of the alleged trust. Petitioner argues that both
he and the guaranteed students are the settlors. Under
California law, a trust is created only if the settlor manifests
an intention to create a trust. Cal. Prob. Code sec. 15201.
Petitioner contends that he intended to create a trust.
Petitioner's intention, as the trustee or a beneficiary (if the
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011