Douglas

FACTS

1. The Douglas Family Trust In 1992, Eva Maria and Riley executed the declaration of trust for the Douglas Trust. The Douglas Trust provided upon the death of the surviving spouse, all trust assets would be divided equally among their four sons, Randall, E. Scott (Scott), Derek, and Garret. 2. Survivor’s Trust (Trust A) and Exemption Trust (Trust B) Riley died in 2002. Upon the death of the first spouse, the Douglas Trust instructed the trustee to divide the trust estate into two separate trusts, designated as Trust A, referred to as the “Survivor’s Trust,” and Trust B, referred to as the “Exemption Trust.” a. Survivor’s Trust (Trust A) The Survivor’s Trust (Trust A) consisted of the share of the community property belonging to Eva Maria, the surviving spouse, her separate property, and the balance of the trust property not allocated to the Survivor’s Trust (Trust A) or the Exemption Trust (Trust B). The Survivor’s Trust (Trust A) was revocable, and Eva Maria had the power as trustee to manage these assets without any obligation or duty to any other person. Upon death, the assets of the Survivor’s Trust (Trust A) would be distributed as directed in the Douglas Trust, unless…