- 8 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
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