David J. Edwards - Page 4




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          made and received patient telephone calls at the Burl Avenue                
          residence and prepared for meetings with patients.  He also                 
          stored audio and video equipment at the Burl Avenue residence.              
               Petitioner’s main medical office was at 360 South Clovis               
          Avenue, Fresno, California (Fresno office).  Petitioner also                
          maintained medical offices in Merced, California, and Burbank,              
          California.                                                                 
               Petitioner stored some of his film-making equipment at the             
          Burl Avenue residence because he believed it was more secure than           
          the studio where he had originally stored the equipment.                    
          Petitioner’s film and music equipment was not inventory held for            
          sale to customers in the ordinary course of business but was                
          instead used by petitioner to make films and recordings.                    
               In 1995, on the advice of Estate Preservation Services (EPS)           
          operated by Robert L. Henkell (Henkell), petitioner transferred             
          ownership of his medical practice, his movie and sound equipment,           
          his airplane and other vehicles, his personal residence, and                
          other assets to seven separate trusts.  Attached as an appendix             
          to this opinion are a diagram and a schedule prepared by EPS                
          showing the ownership of petitioner’s trust entities and the flow           
          of funds among them.  Petitioner’s revocable trust held complete            
          ownership of the “focus trust”, which in turn held complete                 
          ownership of the remaining trusts.  Petitioner retained direct or           








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