Estate of Melvine B. Atkinson - Page 3




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          trustee.  At that time, she also created the Melvine B. Atkinson            
          Irrevocable Trust (administrative trust) and placed stock worth             
          $953,012 in that trust.  MacQuarrie was named trustee for this              
          second trust as well.  On the same day, decedent signed her Last            
          Will and Testament (will), naming MacQuarrie as personal                    
          representative.                                                             
               The annuity trust provided that the trust would pay decedent           
          an annuity equal to 5 percent of the fair market value of the               
          assets of the trust as of the date of its creation, in equal                
          quarterly payments, until her death.  At least seven quarterly              
          payments of $49,999.68 ($3,999,974 x 5% � 4), totaling                      
          $349,997.76, should have been made to decedent before her death.            
          No payments were actually made from the trust account during                
          decedent’s lifetime.  The value of the trust was not diminished             
          by the 5-percent payments.  MacQuarrie was aware that the trust             
          document and the statutes relating to CRAT’s required that a                
          minimum of 5 percent of the initial fair market value be paid out           
          each year, and he was aware that decedent was not withdrawing               
          money from the trust.  No funds were ever transferred to decedent           
          from the trust.  The amount of $366,334.92, representing the                
          amount due to decedent under the trust terms, was included as an            
          asset of decedent’s estate.                                                 
               Upon decedent’s death, the trust document provided that the            
          same 5-percent annuity amount was to be distributed amongst                 







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Last modified: May 25, 2011