Hurd

FACTS

The Hurd Trust and the Hurd Family William and Linda Hurd established the Hurd Trust on June 15, 1992, in Pasadena, California. It was funded with financial assets, real property in California, and real property in Colorado. They were the original trustees as well as the settlors. Appellant and respondent are the children of the settlors. During the joint lifetime of the settlors, the trustees were required to pay the settlors the entire income of their community estate at least once a quarter. If the income was insufficient, the trustees were required to apply as much of the principal of the trust as necessary for the settlor’s health, maintenance, comfort, and welfare. Upon the death of the first settlor, the living settlor was required to divide the trust estate into three separate trusts designated as Trust A, Trust B and Trust C. The trustee was obligated to utilize the interest and principal for the benefit of the

2 living settlor, subject to certain general provisions common to each of the sub-trusts. Upon the death of the living settlor, the successor trustee was required to pay funeral expenses as well as various debts and taxes, then combine the sub-trusts and…