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Petitioners testified that Carolee Purcell returned to her
home in California a few weeks after her father died. At that
point, Sherry Purcell immediately took control of the estate and
managed the estate and the trust. At some point, relations
between the sisters became strained. Petitioners permitted
Sherry Purcell to act as the sole trustee, despite the fact that
petitioner Carolee Purcell was a copersonal representative and
cotrustee.10
Petitioners contend that Sherry Purcell distributed funds
from the trust to Carolee Purcell without identifying the source
of the funds. Petitioners also contend that Sherry Purcell
refused to provide specific information about the estate or the
trust. At trial, petitioners did not deny receiving payments
from the trust but argued that neither the trust nor respondent
clearly identified the distributions at issue as taxable.
The record reflects that the trust distributions to
petitioner Carolee Purcell result from dividends, interest, and
retirement benefits. Petitioners have not demonstrated that the
$45,033 received from the trust in 2003 was not includable in
gross income.
10 Carolee Purcell testified that she discussed her concerns
about the trust with her father’s attorney, that the attorney
characterized Sherry Purcell as belligerent and hostile, and that
the attorney withdrew from representing the trust because he
could not work with Sherry Purcell.
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Last modified: March 27, 2008