Estate of Lea K. Hillgren, Deceased, Mark Hillgren, Executor - Page 11

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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