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trust arrangement. The Morrows also transferred intangible
assets to the trust, such as the business name and the ongoing
business operations of I.D.F. Pest Control Co.
The business was operated in substantially the same manner
both before and after the trust was created. The business and
its activities continued under the same name, used the same
invoices and service contracts, used the same Texas Structural
Pest Control business license, used the same taxpayer
identification number on the Texas Sales and Use Tax Returns,
used the same insurance policies, and used the same business
equipment. After the establishment of the trust, Peter Morrow
continued to work for the business and Charlotte Morrow continued
to manage the business.
The trust did not have an independent trustee. The Morrows
had control over the trust activities and trust assets.
Charlotte Morrow was named as the sole trustee of the trust, and
she had exclusive control over the trust and the business
operations. Additionally, Peter Morrow was named as successor
trustee, had signature authority over the trust’s bank account,
and, on occasion, paid the personal expenses of the Morrows from
the trust bank account. Under the terms of the trust, the
trustee also had the power to appoint successor trustees and
cotrustees.
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Last modified: May 25, 2011