Presta

Two men enter into a real estate investment partnership, each acting in his capacity as trustee of a family trust. The question is: who are the “partners,” the men, or the trusts? The answer is “the men.” A trust of the type formed by both men in this case is simply a fiduciary relationship, governed by the Probate Code, by which one person or entity owns and controls property for the benefit of another. Such a trust is not an entity separate from its trustee, and cannot independently do anything—it cannot sue or be sued; it cannot enter into agreements; and it cannot fulfill the fiduciary duties of a partner. Consequently, we agree with the conclusion of the trial court in this case, that the provision of the partnership agreement which required that upon the death of a “partner,” the partnership shall purchase his interest in the partnership, was triggered by the death of one of the two men. We affirm its judgment.

FACTS

Robert Tepper and Ronald Presta invested in real estate together. They entered into three different partnership contracts, in 1986, 1993, and 1995, each one governing their investment in a separate described property. Tepper and Presta each entered…