Estate of Lea K. Hillgren, Deceased, Mark Hillgren, Executor - Page 29

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               1.  Formation of LKHP as a Premarital Asset Protection                 
          Device                                                                      

               The estate contends that the creation of LKHP was motivated            
          by legitimate business concerns and for premarital asset                    
          protection.  The estate further contends that decedent and                  
          Hillgren negotiated the terms of the partnership agreement at               
          arm’s length under “adverse economic interests”.                            
               First, with respect to the claim that the partnership served           
          as a premarital asset protection device, respondent notes that              
          decedent and her boyfriend broke up before her initial suicide              
          attempt and that it was unclear from the record whether they were           
          intending to get married.  Respondent also notes that the estate            
          made inconsistent representations during discovery and during               
          trial as to whether decedent’s boyfriend was even aware of the              
          partnership.  Respondent further argues that, as a premarital               
          asset protection device, the partnership agreement would fail               
          because decedent had the right to transfer her interest to a                
          spouse and had the power to approve a transfer to her spouse.               
               There is nothing in the language of the LKHP agreement                 
          stating the reasoning behind the formation of the partnership.              
          The estate’s claim that the partnership served to protect                   
          decedent’s assets from an impending marriage to O’Brien is                  
          unsupported by the record.  Title to the properties remained                
          solely in decedent’s name, potentially within the reach of a                






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Last modified: May 25, 2011