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was entitled to the income and principal of Trust A and had a
power of appointment with respect to its remainder.
The property transferred to Trust B was Jack Rector’s
remaining assets. Decedent’s interest in Trust B was a life
estate, consisting of distributions of monthly income. The terms
of the Trust B agreement directed that the cotrustees make
monthly payments of the net income to decedent during her
lifetime and allowed the cotrustees to pay to decedent “such
amounts of trust principal as the Trustee deems necessary for
* * * [decedent’s] care and comfortable support in * * * her
accustomed manner of living, but only if the principal of Trust A
may not in the judgment of the Trustee be readily used for these
purposes.” The Trust B agreement stated that upon the death of
decedent, her sons were entitled to the entire income of Trust B
for life, payable monthly, and the remainder of Trust B would be
distributed in equal shares to decedent’s natural grandchildren.
On October 29, 1991, at the age of 85, decedent created the
Concetta H. Rector Revocable Living Trust (1991 revocable trust)
to which she transferred the assets of Trust A. Decedent and
John Rector were appointed cotrustees of the 1991 revocable
trust, and Frederic Rector was named successor cotrustee. The
1991 revocable trust agreement stated that decedent was entitled
to all of the income and principal from the 1991 revocable trust.
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