Chapter 10 - EQUALIZATION
Arthur’s trust contained a rule.
Not complicated once Martin explained it.
Major support given to one descendant branch above ordinary limits had to be accounted for when later descendant branches activated.
Not necessarily repaid immediately.
But disclosed.
Adjusted.
Reviewed.
If Lauren’s branch had received excessive benefit, future allocations could be reduced or corrected.
Noah’s activation triggered the first full equalization review because he was the first great-grandchild in my branch.
Dad had spent years giving Lauren money outside formal trust distributions.
Some from his own funds.
Fine.
Some indirectly from trust-supported assets.
Less fine.
Then the Harbor loan.
Parents borrowed against their home, used me as guarantor, transferred money to Lauren.
Why?
Because formal trust request for $280,000 had been denied.
Martin found it.
Three years earlier.
Purpose:
Primary residence support for Lauren Mercer Collins and children.
Trustee response:
Existing beneficiary resources and prior support sufficient. Request denied.
Dad found another route.
Borrow personally.
Use my credit strength.
Transfer money.
Then tell Lauren it was “family equity.”
Why use my guarantee?
Because Dad’s debt-to-income ratio was too high.
Mine was strong.
And if I paid the monthly interest voluntarily, nobody would question sustainability.
May you like
I had done exactly that.
Without knowing.
