- 14 -
$2,200 ($4,300 - $2,100), creating a shortfall of $4,800 ($2,200
- $7,000).
After the benefits under decedent’s residential care
insurance policies had expired, Mr. Bigelow told the trustee of
the 1954 trust that decedent did not have enough income to pay
her expenses. As a result, by April 1997, the trustee had
distributed a total of $68,214 to decedent and terminated the
1954 trust. Mr. Bigelow and his wife received $22,000 from the
funds distributed from the 1954 trust before decedent died in
August 1997.
Decedent’s trust had accounts at Citizens Bank. When
Spindrift was formed, the total amount in those accounts was
about $23,500. Decedent’s trust received more than $68,000 early
in 1997. When decedent died, the combined balance was about
$5,500. All of the checks drawn on the Citizens Bank accounts
were signed by Mr. Bigelow as trustee of decedent’s trust.
L. Tax Returns
1. Decedent’s Income Tax Returns for 1993-97
On decedent’s 1993 Form 1040, U.S. Individual Income Tax
Return (decedent’s 1993 return), decedent reported adjusted gross
income of $50,037. On Form 8824, Like-Kind Exchanges, decedent
reported $25,833 as boot from the exchange of the Sand Point Road
property for the Padaro Lane property. On Schedule E,
Supplemental Income and Loss, decedent reported $43,750 of rental
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