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C. Decedent’s Trust
In 1991, decedent executed (1) a declaration and agreement
of trust (the trust agreement), which created decedent’s trust,
and (2) a deed transferring her remaining 98.2857-percent
undivided interest in the Sand Point Road property to herself and
to her son as cotrustees (the trustees) of decedent’s trust.
Decedent had the power to revoke the trust during her
lifetime. The trust agreement required the trustees to
distribute all of the income to or for the benefit of decedent
and allowed the trustees to invade the trust corpus for
decedent’s care, maintenance, or support. The assets remaining
in decedent’s trust when she died were to be distributed in equal
shares to her three children.
Decedent suffered a stroke and was hospitalized on March 9,
1992. After she was released from the hospital, she entered a
rehabilitation center for about 6 weeks. She then moved to an
assisted-living facility in Alhambra, California. On December
30, 1992, decedent withdrew a 1.5-percent interest in the Sand
Point Road property from the trust and gave each of her daughters
a 0.75-percent undivided interest in that property.
D. The Exchange of the Sand Point Road Property for the Padaro
Lane Property
In the fall of 1992, the trustees of decedent’s trust listed
the Sand Point Road property for sale with a real estate broker.
In January 1993, the trustees of decedent’s trust and decedent’s
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Last modified: May 25, 2011