Behrmann

FACTS AND PROCEDURAL HISTORY

A. Facts Because we are reviewing the trial court's grant of a nonsuit, we construe the evidence presented at trial in the light most favorable to the Behrmanns, and resolve all presumptions, inferences and doubts in their favor. (Castaneda v. Olsher (2007) 41 Cal.4th 1205, 1214-1215; Nally v. Grace Community Church (1988) 47 Cal.3d 278, 291 (Nally).) In the mid-1990s, Baker created a proprietary investment "tool" he called the "Financial Independence Plan" (FIP). Under the FIP, an investor would buy a variable life insurance policy and place title to the policy in an irrevocable life insurance trust. The policy would be a "split dollar policy." Ten percent of the policy's premiums would be paid directly by the investor; the remaining 90 percent would be paid by a private charity the investor created and funded specifically for that purpose. The policy's death benefit was also split, with the charity and the investor's designated beneficiaries receiving a share upon the investor's death. Baker's plan advised investors up front that the Internal Revenue Service (IRS) might, at some point, disallow split dollar policies.…