Shelton

FACTS AND PROCEDURAL HISTORY

1 Upon the death of the second trustor, Barbara Anne Larson (Barbara), one of the Trust’s assets was a piece of residential real property in Anaheim (Residence), in which Barbara had been living. Barbara or the Trust (the record is unclear) had borrowed $290,000 from Bank of America (BofA Loan), apparently to loan money to Trustee’s son Christopher and his wife (Perezes). In 2010, the Perezes borrowed approximately $330,000 from Barbara or from the Trust (again, the record is unclear) to purchase real 2 property. The loan was evidenced by a promissory note secured by a deed of trust on the property purchased (Perez loan). In 1991, Trustee herself borrowed almost $120,000 from Barbara and Larson (Trustee Loan). This was evidenced by a promissory note and secured by a trust deed on Trustee’s residence. The Trustee Loan was an asset of the Trust upon Barbara’s death. The Trust also owned a truck.

1 We use Barbara’s first name for clarity, not out of disrespect. 2 In her first account, Trustee stated that the deed of trust referred to a promissory note but she could not find it.

3 Paragraph 7.10 of the Trust, entitled “Compensation of Individual…