Article Archives >> Lead Stories >> February 16-28, 2006

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Foundation Is Not “Affiliated Organization”
Because of Overlapping Trustees

Court says Trustees can collect fees from both entities
without offset required for service with affiliated organization

When Marvin M. Schwan died in 1993, he left an elaborate estate plan, including a major contribution of stock in the Schwan Food Company to the Schwan Foundation Trust, and another major bequest to a separate trust for the benefit of his unborn great, great grandchildren and descendants (“the 3G Trust”).

The Foundation redeemed Schwan’s stock in the Company for cash to run the Foundation programs. The 3G Trust acquired enough voting stock to control the Company.

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Article Archives >> Lead Stories >> February 16-28, 2006




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