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B. Operation of the Turner Partnership
1. Securities
The investment strategies for decedent’s trust holdings did
not change significantly after they were transferred to the Turner
Partnership. Ms. Newnam remained as adviser, and decedent’s
securities continued to be held in the Alex Brown account. The
amount of activity of the Turner Partnership account was low;
indeed, at trial, Ms. Newnam could not characterize the trading
activity of the account as even “moderately” traded.
2. Life Insurance Policies
The Turner Partnership owned insurance policies on the lives
of George and Betsy. The amount of insurance on George’s life was
$237,500 with a term rider of $196,500, for which the partnership
paid an annual premium of $15,992.88.6 The amount on Betsy’s life
was $200,000, for which the partnership paid an annual premium of
$3,927.
3. Lewisville Properties
In September 1993, Betsy, George, and their daughter, Phoebe,
discussed investing in a real estate project, known as the
Lewisville Properties. Lewisville Properties was a modular home
construction venture. Phoebe, a real estate broker, believed that
little risk was involved in making the investment and that she
6 The proceeds of the life insurance policy were paid to
the Turner Partnership after George’s death in 1999.
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