Gaslowitz Frankel recently prevailed on a motion for summary judgment that resulted in its client retaining ownership and control of a grantor trust with a limited partnership interest valued at more than $80 million dollars.
The case, which was heard by Fulton County Superior Court, Business Court Division, centered on the issue of whether the terms of a grantor trust authorized the grantor to unilaterally substitute a limited partnership interest owned by the trust with an unsecured note. The trial court said no; any transfer of the partnership interest required the grantor to comply with the transfer provisions of the partnership agreement, which the grantor had not done in this case. Therefore, according to the trial court, the trust still owns its limited partnership interest, and accordingly, our client is entitled to the benefits of that ownership.
