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The 1991 revocable trust agreement granted decedent the power to
amend and revoke the 1991 revocable trust by “written notice
delivered by Trustor during the lifetime of the Trustor to the
Trustees. In the event of such revocation, the Trust Estate
[corpus] or revoked portion thereof shall revert to the Trustor
as her separate property, as if this Trust had not been created.”
4. Decedent’s Move to the Golden Empire Convalescent Hospital
In October 1998, at the age of 92, decedent became a full-
time resident of the Golden Empire Convalescent Hospital
(hospital). She lived there until she died approximately 3 years
later. Her medical expenses, including her residence at the
hospital, cost her $24,588 during 1998, $71,798 during 1999,
$78,114 during 2000, and $94,822 during 2001.
5. Plans To Create a Limited Partnership
Among decedent, John Rector, and Frederic Rector, John
Rector was the first to consider forming a limited partnership to
which to transfer decedent’s assets. John Rector learned of the
idea from Ed Anderson (Anderson), an attorney who had created a
trust for John Rector and his wife and had amended decedent’s
1991 revocable trust agreement. Anderson advised John Rector
that such a limited partnership would allow decedent to give
limited partner interests to her sons and grandchildren, protect
her assets from her creditors, and significantly reduce the value
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Last modified: March 27, 2008