Penny

Appellants Melinda Penny (Melinda), John Ferris (John), and Richard Ferris (Richard) appeal from a judgment entered after a court trial in favor of respondent Kristin Elaine Wilson (Kristin). Appellants contend that the trial court erred in finding the 1998 creation of a tmst and conveyance of real property to the tmst by decedent William Ferris (William) to be valid. We agree, and reverse the judgment.

FACTS AND PROCEDURAL BACKGROUND

On December 4, 1981, William and Elaine Ferris (Elaine) created the Ferris Family Tmst (FFT). The following six real properties were put into the tmst: Newport Beach residence (Newport Beach Property); San Marino residence (San Marino Property); Alhambra rental property; Alhambra commercial building; Alhambra medical building; and Costa Mesa apartments. William and Elaine’s adopted children Melinda, John, and Richard, and their biological child Kristin, were the beneficiaries of the tmst.

Elaine passed away on December 10, 1981. According to the terms of the FFT, upon Elaine’s death, William was to divide the trust assets of the FFT into the survivor’s trust and the decedent’s trust. The survivor’s trust was to be made up of the separate…