- 18 -
Bernards resigned as trustee of ISA Trust, leaving Mr. Welter as
sole trustee.
ISA Trust made six distributions between April 22, 1991, and
December 30, 1994. Each distribution was preceded by decedent’s
requesting the trustee or trustees to consider making the
distribution. After each distribution, an entry was made in
Empak’s stock register recording ISA Trust’s distribution of
Empak shares to a particular beneficiary. Empak and the named
distributee would enter into a stock redemption agreement at
approximately the same time as the distribution. The stock
redemption agreements provided for Empak to redeem the
distributed shares if the distributee was willing.
The first distribution occurred on April 22, 1991. ISA
Trust distributed 150 shares of Empak stock to Mark Bongard, who
then caused Empak to redeem the shares on May 1, 1991, for
$40,000, which he used to purchase a home. The second
distribution of 180 shares of Empak stock occurred on August 31,
1992. Beth Akerberg was the recipient of this distribution,
which was shortly followed by a redemption of the shares by Empak
in exchange for a 90-day note. On February 1, 1994, ISA Trust
distributed 250 shares of Empak stock to Lynn Zupan. On the same
day, Empak redeemed the 250 shares from Lynn Zupan. Empak paid a
portion of the redemption proceeds directly to a third party who
had performed home improvement work on Lynn Zupan’s home. The
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011