Larry J. and Anita L. Lundgren - Page 14

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          nothing in the record to suggest that Mr. Chisum exercised any              
          power or authority over the Legg Mason account.  These facts                
          demonstrate the lack of an independent trustee for the purported            
          Lucky Kirt Trust.                                                           
               C.   Economic Interests of Beneficiaries                               
               The Lucky Kirt Trust arrangement does not reflect an                   
          economic interest’s being transferred to any other beneficiaries.           
          Raymond Roemer had the power to revoke or amend the trust, and              
          petitioners did not provide any evidence to the contrary.  Thus,            
          Raymond Roemer essentially had unlimited power to control the               
          trust property in any manner, and upon his death, Mrs. Lundgren             
          in practice replaced her father as the trustee.                             
               Mrs. Lundgren signed several documents for the USDA,                   
          identifying herself in capacities such as the heir or beneficiary           
          of Lucky Kirt Trust and on behalf of Lucky Kirt Trust as                    
          participant, owner, operator, manager, or agent.  After Raymond             
          Roemer’s death in 1994, Mrs. Lundgren was the only one with                 
          access and control over the Lucky Kirt Trust II bank account                
          because, as secretary, she was the only other person listed on              
          the account.  Because the Lucky Kirt Trust had no other                     
          beneficiaries than Mrs. Lundgren and because the Lucky Kirt Trust           
          II bank account was completely controlled by Mrs. Lundgren after            
          her father’s death, petitioners had the power to allocate all the           
          income and property of the trust to themselves to the detriment             
          of other potential trust beneficiaries.                                     




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