McDaniel v. Ortlieb
San Diego resident Elgin R. Parker and his wife, Eleanor Flo Parker, owned several thousand shares of Home Interstate Bancorp (Home Bank), a corporation they cofounded. On September 23, 1983, the Parkers created the Funded Intervivos Trust of the Parker Family (trust agreement or Parker Family Trust). In doing so, they transferred 12 numbered certificates representing 49,612 shares of Home Bank into their trust. As cotrustees of the trust, the Parkers had discretion to buy and sell assets during their joint lifetimes. The trust agreement also provided that the surviving trustor would have similar discretion to buy and sell assets during his or her lifetime.
[T]he gift of the Home Bank Stock as provided in [Trust Agreement] Section 4.03(b) was not adeemed and ... the assets on hand in the Elgin Parker Residual Trust C [shall] be transferred and administered by [appellant trustee] as trustee of a separate trust to be known as the Home Bank Trust, with the trustee to continue to distribute all income and/or interest and/or dividends generated from the traceable cash proceeds generated from the prior sale of the Home Bank Stock to the remaining surviving children of the [Trustors] in equal shares, and upon the death of the last surviving child of the [Trustors], the Home Bank Trust assets are to be distributed, in kind, in equal shares, share and share alike, among the grandchildren of the [Trustors] ....
Court have rejected appellants contention in issue I above and no further discussion is required.
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