Braaten

FACTS

Howard and Jonnie Lester established the Lester Family Trust. The trust consists of two subtrusts, the disclaimer trust and the survivor’s trust. Only the survivor’s trust (Trust) is the subject of this appeal. Jonnie died in 2004, and Howard died in June 2017.1 Jonnie’s children and Howard’s stepchildren, Mark and William (Bill) Braaten, are sole beneficiaries of the Trust. Originally Mark and Howard were cotrustees. When Howard became incapacitated, Mark became the sole trustee. At the time of Jonnie’s death, the Trust had a value of approximately $2.6 million. Before Howard became incapacitated, he had a business purchasing secured hard money loans. In 2007 and 2008, he purchased secured loans in Bill’s name, and the Trust took back unsecured notes from Bill in the amounts of $150,000 and $60,000. In 2013, Howard purchased a home in Mark’s name. The Trust took back a promissory note from Mark secured by the home. In September 2016, Howard moved into a property on Piney Way in Morro Bay owned by the disclaimer subtrust. Mark and his wife moved in with Howard to care for him.

1 When necessary, we refer to individuals by their first

names to ease the reader’s task.

2. As…