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the time they filed their petition. The principal address of the
trust was Humble, Texas, at the time of filing its petition.
Prior to the establishment of the trust, Richard Pelham
owned and operated Lake Lock & Key as a sole proprietorship.
Lake Lock & Key was engaged in the sale, repair, and maintenance
of locks and keys for homes and motor vehicles, including selling
locks and keys, installing and repairing locks for homes and
motor vehicles, opening and repairing broken locks and those with
missing keys, and making replacement keys. As a sole
proprietorship, all of the equipment was owned or provided by
Richard Pelham individually.
The trust was established upon the suggestion of the
Pelhams’ accountant. The Pelhams then consulted with a tax
attorney, to whom they paid $2,495 to draft the trust document.
Edwina Hamilton (Hamilton), the adult daughter of the Pelhams,
was involved in the trust arrangement and, on October 1, 1996,
Hamilton, as donor, and Richard Pelham, as trustee, executed the
trust agreement. The trust designated Richard Pelham as both the
trustee and beneficiary of the trust. Paula Pelham was named as
the successor trustee. Under the terms of the trust, the
beneficiary, while serving as trustee, had the power to appoint
cotrustees and successor trustees.
The trust was initially funded with $1 from Hamilton and,
upon the request of Richard Pelham, Hamilton wrote a check for
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Last modified: May 25, 2011