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principal to the beneficiaries as the trustee deemed necessary
for the beneficiaries’ health, education, support, or
maintenance. The trust instrument then set forth the following
with respect to the trust’s termination:
Upon the death of Eleanor T. Trotter, the real
estate which is contemplated to be held by this trust
(namely Apartment 3-S, Westriver Townhouses Horizontal
Property Regime, Pulaski County, Arkansas) shall be
maintained for one year during which time John F.
Trotter, Sr. (if he remains married to Grantor at the
time of her death) shall be entitled to live in such
real estate rent free if he pays all occupancy
expenses. Also, he shall have the option within one
year of Grantor’s death to lease or purchase such real
estate at its fair rental rate or fair market value (as
the case may be). If he leases the real estate, the
trust shall continue to hold the real estate until the
lease terminates. At the termination of the lease or,
if no lease, one year following Grantor’s death, the
assets then held in trust shall be divided into equal
shares for as many grandchildren of Grantor as are then
living or who have deceased but left issue surviving.
Such shares shall then be distributed directly to the
Beneficiaries except to those who are minor and, in
such event, * * * [distribution shall be to a trustee
managing a trust for the benefit of such minor
beneficiary].
The provisions described above regarding the use and
distribution of trust assets during and at the termination of the
trust were contained in paragraph 2 of the document, labeled
“DISPOSITIVE PROVISIONS”. Paragraph 3, “RIGHT OF WITHDRAWAL”,
next stated, in pertinent part:
Notwithstanding the provisions of paragraph 2
above, in the calendar year in which the trust is
created, the Beneficiaries shall have the power, in
their sole discretion, commencing with the date of such
creation to withdraw property then belonging to the
principal of the trust having a value equal to the
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Last modified: May 25, 2011