This was originally posted on the SGR Blog.
Was Stock Certificate to Son a Gift or Forgery?
It is not unusual for intra-family exchanges, gifts and transactions to be implemented without the formalities required by law. But, as a recent case illustrates, the Court may have to sort out intentions and consequences where the facts are in dispute, the acts or documents are not clearly dispositive, and conflicting outcomes are suggested.
In 1989, Abraham Lurie incorporated Lurie Management Corp., naming himself as sole owner and shareholder. In 2018, Neil Lurie, Abraham’s son, received a letter from Abraham’s attorney stating that Abraham had transferred his ownership of the stock of LMC to three trusts: 49% to Neil Lurie Trust (which was created by Abraham for the benefit of Neil), 25.5% to Susan Lurie Trust (which was created by Abraham for the benefit of his daughter Susan Lurie) and 25.5% to Leila Lurie Trust (which was created by Abraham for the benefit of his daughter Leila Lurie).
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