-53-
of the Exxon stock to Schutt II, specified that at the death of a
primary beneficiary, one of decedent’s children, the assets were
to be distributed free of trust to the corresponding
grandchildren. Respondent apparently seeks to belittle any
concern decedent may have felt over these provisions by citing
the good health of decedent’s three surviving children, who were
61, 60, and 56 at the time of decedent’s death. Yet respondent
has offered no evidence contradicting the bona fides of
decedent’s fears in this regard. Nor is the Court prepared to
say that decedent, who had already lost one child to cancer and
observed firsthand the operation of the outright distribution
mechanism, would be unjustified in taking steps to guard against
this risk.
Still another aspect of the evidence in this case that
corroborates decedent’s desire to perpetuate his investment
philosophy through establishment of Schutt I and II stems from
WTC’s concerns with and reactions to the proposed arrangement.
The record indicates that WTC perceived the business trust
transactions as having a meaningful economic impact on the rights
of the beneficiaries of the WTC trusts. From early in the
planning process, representatives of WTC consistently voiced
concerns regarding the effect of the business trusts on
liquidity.
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