Estates and Trusts Commons^™

Gifts - Marriage And Divorce - Restitution Of Gifts Given In Contemplation Of Marriage, Michigan Law Review

Michigan Law Review

Plaintiff became engaged to Loretta Burns in 1914 and gave her a diamond ring. This engagement was ended in 1917 and the ring returned. A period of estrangement followed. In 1921, plaintiff gave her a dinner ring, in 1926 a wrist watch, in 1927 an onyx ring, in 1928 a diamond ring. Each gift was given on Christmas Eve. Loretta died in 1935, leaving defendants as heirs and next of kin. Plaintiff filed a suit in replevin and later a declaration in trover and conversion for these gifts. Held, after concluding that the evidence warranted a finding of an …

Taxation - Jurisdiction To Tax - Multiple Taxation Of Intangibles, Richard Brawerman

Michigan Law Review

In two recent decisions of the United States Supreme Court, Curry v. McCanless, and Graves v. Elliott, a majority of the justices refused to adhere to the doctrine that the Fourteenth Amendment prohibits taxation of intangibles by more than one state, and subscribed instead to the view that control and benefit are together the only test of jurisdiction of the states to tax. In Curry v. McCanless, the decedent, a resident of Tennessee, had created a trust of intangibles, reserving control over the income during her life and power to revoke the trust by will. The trust …

Powers - Liability Of Appointed Property For Debts Of Donee - Validity Of Attempted Restriction Of Liability By The Donor, Ward P. Allen

Michigan Law Review

By the terms of the donor's will a spendthrift trust was set up for her three grandchildren for life, giving them a general testamentary power of appointment over that portion of the corpus from which their share of the income had been derived, "but in no event shall any part of said trust funds be liable for, or be paid or appropriated to or for any debts or liabilities of such grandchildren . . . . " There was a gift over to the issue of the donees in default of appointment. By will one of the donees exercised the …

Wills - Right Of Creditors Of Testamentary Donee To Set Aside His Renunciation - Right Of Surviving Spouse To Share In Intestate Property After Electing To Take Under Will In Lieu Of Her Distributive Share, D. M. Swope

Michigan Law Review

Testator left all his real and personal property to his wife for life, and the remainder to his son and daughter in equal shares. The widow elected to take under the will in lieu of dower and other legal rights in the estate. The daughter renounced any right under the will, and seven months later filed a petition for voluntary bankruptcy. Her trustee in bankruptcy instituted this suit in equity to annul the renunciation. Held, the daughter had the right to file an unconditional disclaimer of all benefits granted her under the will and her creditors cannot complain thereof; …

Legal Institute, Michigan Law Review

Michigan Law Review

A legal institute for practicing lawyers will be held at the Law School of the University of Michigan on June 22 to 24. The student dormitories in the classic Law Quadrangle will be open to those attending the Institute. Subjects to be discussed will include Taxation, Labor Law, and Wills and Trusts. Members of the law faculty and several practicing lawyers specializing in the topics to be considered will be the lecturers.

Charities - Indefiniteness - Construction Of Statute Validating Indefinite Trusts For Charity, John M. Ulman

Michigan Law Review

The testator's will contained a bequest of $10,000 to executors to be held in trust by them and paid out "to such corporations or associations of individuals as will in their judgment best promote the cause of preventing cruelty to animals in the vicinity of Asheville." A state statute provided that no charitable trust should be declared invalid by reason of any indefiniteness or uncertainty of the object or beneficiaries of the trust or because the trustee is given discretionary power in the selection and designation of the objects or beneficiaries of the trust or in carrying out the purpose …

Taxation-Income Tax -Jurisdiction -Trusts - State Tax On Resident Beneficiary's Net Income From Trust Established And Administered By Non-Resident Trustee, Allan A. Rubin

Michigan Law Review

The state of Virginia imposed an income tax upon the income received by a resident of Virginia as beneficiary of a discretionary trust established and administered in New York by a resident of New York, which state had levied and collected an income tax on the entire income of the trust fund. Petitioner protested the payment of the Virginia tax, alleging the taking of property without due process of law and the denial of equal privileges in contravention of the Fourteenth Amendment of the Federal Constitution. Held, that the tax was valid, since it was ascertained by the beneficiary's …

Trusts - Right Of Trustee's Wife To Dower In Property Held Subject To Oral Trust - Effect Of Subsequent Memorandum - Dower Where Trustee Has Both Legal And Equitable Interest, Michigan Law Review

Michigan Law Review

Pursuant to an oral agreement and upon consideration furnished by them, A, B, and C procured land to be conveyed to A by a third party. Six days later A executed a self declaration of trust in the terms of the oral agreement; that he would operate it, and within a specified period sell the property and divide the proceeds between himself, B and C, as beneficiaries. A suit to remove A as trustee culminated in a judicial sale of the property to B and C. In this proceeding by B and C to quiet title, A …

Trusts - Termination By Consent Of Beneficiaries - Who Are Beneficiaries - Acceleration Of Equitable Remainders, Richard S. Brawerman

Michigan Law Review

It is the purpose of this comment to consider the destructibility of trusts for successive beneficiaries where the settlor has not expressed his intention with respect to the matter. It will appear that two questions are involved: First, what is the settlor's purpose for the trust? Second, who are beneficiaries?

Deeds - Future Interests - Right Of Murderer To Acquire Property By Operation Of Condition Subsequent That Property Shall Revert On Grantee's Death, Russel T. Walker

Michigan Law Review

Grantor, who had been adjudged insane, conveyed a farm to grantee on condition that the farm would revert to grantor should grantee predecease him. Grantee was killed under circumstances tending to show that he was killed by grantor, who was insane at the time of the death of the grantee. Held, title to the land, under the deed, reverted to grantor upon grantee's death, in spite of the general rule in Missouri that a murderer cannot inherit realty from his victim. Eisenhardt v. Siegel, (Mo. 1938) 119 S. W. (2d) 810.

Appeal And Error - The Administrator As A Party Aggrieved By Probate Of Will, John H. Uhl

Michigan Law Review

In an action to prove the existence of a lost will executed by the deceased, judgment was rendered setting up the lost will and revoking the letters of administration which had been issued. The administrator appealed from this order, and the appellee moved to dismiss the appeal on the ground that the administrator had no such interest as entitled him to review. The governing statute permitted appeal by "any party aggrieved by any final order, judgment, or decree." Held, that the administrator who has qualified as such was entitled to appeal under the statute, as the party aggrieved by …

Rule Against Perpetuities - Testamentary Provision Making Gift Vest On Distribution Of Testator's Estate, Henry L. Pitts

Michigan Law Review

Testator devised and bequeathed the residue of his estate to four specified chair officers of a lodge who were to be "the four chair officers in office at the time of distribution of my estate." These officers were elected annually. The lower court found that the clause was void as in contravention of sections 715 and 716 of the Civil Code of California. The four individuals holding the named offices in the lodge appealed. Held, affirmed. In re Campbell's Estate, 94 Cal. App. Dec. 482, 82 P. (2d) 22 (1938).

Wills - Construction - Meaning Of "Issue" In Testamentary Gifts, Daniel Hodgman

Michigan Law Review

Two recent cases illustrate a trend in the judicial construction of the word "issue" in wills which seems to be divergent from the view expressed in the older cases.

In Re Thompson's Estate there was a bequest to A and B for their lives and at the death of the survivor "one half thereof to the living issue of each daughter, if there then be such issue of each, whether of the first or succeeding generations." At the death of the survivor there were six children of A and two grandchildren, issue of living children, and there were two children …

Taxation - Federal Estate Tax - Inter Vivos Trust As Gift To Take Effect In Possession Or Enjoyment At Death, Edmund O'Hare

Michigan Law Review

On May 14, 1919, decedent set up six trusts, appointing life estates with remainders over. Each trust deed provided: "This Trust may, during the lifetime of the Grantor, be amended or revoked on the joint consent of the Grantor and the Trustees." The remainderman, who was the same person in each trust, was also one of the three trustees. Decedent died on September 4, 1928. The Board of Tax Appeals sustained the contention of the Commissioner of Internal Revenue that the value of the life estates should be included in the decedent's gross estate by virtue of section 302 (c) …

Taxation-Income Tax-Discretionary Application Of Income Of Irrevocable Trust To Maintenance Of Settlor's Children-Taxability To Settlor, Benjamin H. Dewey

Michigan Law Review

Settlors, husband and wife, established certain irrevocable trusts with themselves and another as trustees, and the children of the settlors as beneficiaries. The income from the trust property was to be accumulated, and a certain percentage of the corpus and accumulated income was to be distributed to the beneficiaries as they respectively reached certain specified ages. The trust agreement further provided that the trustees should have the power to expend from the corpus or income such sums as they should deem necessary and advisable for the maintenance, education and support of the beneficiaries, or to defray expenses arising from sickness, …

The Widow's Right Of Election In The Estate Of Her Husband, Elbridge D. Phelps

Michigan Law Review

Reference has already been made to the difficulties arising when the widow has elected to take under the will, and for some reason or other, intestate property also remains to be disposed. Further difficulty arises in those cases where the widow elects to take against the will and yet claims to share in intestate property. Shall her claim be allowed under those circumstances?

Banks And Banking - Trusts - Special Deposits - Agreement Between Depositor And Bank, Robert E. Sipes

Michigan Law Review

During a period of widespread bank failures, plaintiff corporation ceased depositing its funds with the defendant bank. To maintain the public's impression that the plaintiff was a regular customer of the bank, an agreement was entered into by the bank and the plaintiff whereby the bank was appointed "agent" of the plaintiff to collect and remit promptly money due plaintiff. Branch offices of the plaintiff deposited money under this agreement to be transmitted to the plaintiff. When the bank failed with some of this money still in its hands, plaintiff sought to be allowed a preferred claim. Held, the …

Taxation - Income Tax - Settlement Of Will Contest As Taxable, Anthony L. Dividio

Michigan Law Review

Taxpayer commenced suit to contest the probate of his grandmother's will, by which she had made nominal bequests to her grandchildren, and had created a charitable trust with the large residue. The parties agreed upon a settlement, as a result of which taxpayer received $141,404.03, all of which the tax commissioner claimed was taxable income. Held, the amount received by taxpayer came to him because he was an heir and did not constitute taxable income. Lyeth v. Hoey, (U. S. 1938) 6 U. S. Law Week 421 (Dec. 6, 1938).