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review the Third Account, appear before the California Court, and
make appropriate objections.
Insufficiently productive assets. Petitioner contended that
the Trustee failed to earn a normal rate of return on trust
assets, focusing on two of these assets. One asset was the
residence which had been occupied by L.O. Ivey’s widow after his
death. Petitioner contended that the Trustee failed to make the
property productive after the death of L.O. Ivey’s widow and that
the Trustee sold the residence for only $3.5 million, although
the residence had been appraised at $5.2 million and there had
been offers to buy the residence for more than $3.5 million. The
other asset was a series of gypsum mining claims located in
Nevada. L.O. Ivey owned the claims for 10 to 12 years before his
death. For nearly 15 years the Trust did not receive income from
the claims but did incur expenses associated with them. The
Trustee disposed of the claims after petitioner filed the
Objections.
Charges of bias and fraud. Petitioner charged that the
Trustee failed to protect the interests of income beneficiaries
with regard to the residence that had been occupied by L.O.
Ivey’s widow, and that, to make up for this, the Trustee proposed
to distribute the proceeds of the sale of that residence in a way
that would fail to protect the interests of the remainder
beneficiaries. Petitioner proposed that the income
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