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Probate and Trusts
Trust
Trust/Estate Tax Dispute

In the Matter of LET Revocable Trust U/D/T dated February 11, 2008

Published: Feb. 2, 2013 | Filing Date: Jan. 1, 1900 |

Bench Decision –  Petition Granted

Court

Riverside Superior


Attorneys

Plaintiff

Adam F. Streisand

Nicholas Van Brunt

Amy Bell


Defendant

Rodney C. Lee

Marshall B. Grossman

Karen Y. Cho
(Morgan, Lewis & Bockius LLP)

Jeffrey Merriam-Rehwald


Facts

The Tweten family amassed a $100-million estate from the founding and sale of their business, Magnolia Home Entertainment. Mrs. Tweten died in 2010 when there was no estate tax in effect. The family executed a trust in 2008 and amended it in 2010. Mrs. Tweten's adult daughters filed suit to invalidate the amendment and to enforce the trust as drafted, because the amendment would cause the estate to be distributed as if the death occurred in 2009 and the share of the first to die would go to the surviving spouse. Mr. Tweten filed a petition to modify the trust to conform to the amendment.

Result

The Court invalidated the amendment for lack of execution, but also rejected claims that it was procured through fraud, mistake, undue influence or forgery. The Court went on to modify and reform the trust to reflect Mrs. Tweten's intent as reflected in the intended amendment.


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