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refinancing in accordance with his 25-percent lender interest in
proceeds from refinancing as provided by the BLA. In 2001,
however, in his capacity as general partner of LKHP, Hillgren
paid himself $92,332, representing 25 percent of the net loan
proceeds from the 1999 refinancing of the University property.
The Amended Trust
On January 29, 1997, the original trust was amended and
restated (amended trust). Decedent and Hillgren were named as
cotrustees of the amended trust. Whereas Hillgren was the
beneficiary of the original trust, Hillgren and his two children
were the beneficiaries of the amended trust. The amended trust
provided for payment of the estate’s expenses and taxes after
decedent’s death.
The amended trust was funded by the items listed in
“Schedule A”. Schedule A included: The Orange County
properties, the University property, a partnership interest in
Nordica, decedent’s personal residence, three other properties
(Crescent Bay, Railroad, and Manzanita), and several additional
assets including bank accounts. Also on January 29, 1997,
decedent executed a will, naming Hillgren and his children as the
sole beneficiaries of decedent’s estate.
Loans Between Decedent and Hillgren
Over a number of years, decedent and Hillgren engaged in
several loan transactions. When one sibling needed money, the
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Last modified: May 25, 2011