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distribution under the terms of the annuity. On brief,
respondent further contends that Phyllis’s oral statement to
Julie did not create a trust.
Clearly, Phyllis’s naming of Julie as the successor owner of
the annuity constituted a nonprobate transfer of the annuity to
Julie. See Cal. Prob. Code sec. 5000 (West 1991). The question
thus presented is whether Julie received the distribution subject
to an oral trust to distribute the annuity proceeds to the
children upon Phyllis’s death.
Under California law, it is well settled that a trust over
personal property may be created orally and established by parol
evidence. Cal. Prob. Code sec. 15207 (West 1991);5 see Fahrney
v. Wilson, 4 Cal. Rept. 670, 672-673 (Dist. Ct. App. 1960). The
essential elements of a trust, whether oral or written, under
California law are: (1) A manifestation of an intention by the
settlor to create a trust; (2) a proper trust purpose; (3) trust
property; and (4) an identifiable beneficiary. Cal. Prob. Code
secs. 15201-15205 (West 1991). A trust may be created by the
“transfer of property by the owner, by will or by other
instrument taking effect upon the death of the owner, to another
5 As relevant herein, Cal. Prob. Code sec. 15207 (West
1991) provides: (a) An oral trust of property may be
established only by clear and convincing evidence; and (b) the
oral declaration of the settlor, standing alone, is not
sufficient evidence of the creation of a trust of personal
property.
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