Estates and Trusts Commons^™

Gifts For The Benefit Of Minors, Austin Fleming

Michigan Law Review

Primarily because of tax incentives, lifetime gifts have become increasingly popular in recent years among persons of wealth. Until the Revenue Act of 1948, such gifts were frequently made between spouses. But the tax advantages of interspousal gifts were greatly lessened by the split-income privilege and the marital deduction, and a new inducement was given to gifts to third persons by the establishment of the right to treat such gifts as being one half from each spouse. As a result, gifts to children and grandchildren have taken on new prominence.

Constitutional Law-Power Of State To Discriminate Against Federal Government By Testamentary Transfer Statute, Gordon W. Hueschen

Michigan Law Review

Decedent, domiciled in California, made a testamentary gift to the United States. By an interpretation of the state probate code, the California Supreme Court held the gift invalid and directed distribution to decedent's heirs. The United States asserted unconstitutional interference with the federal government's power to receive gifts. On appeal to the United States Supreme Court, held, affirmed. The California Probate Code did not violate the supremacy clause of the Constitution, and no unconstitutional discrimination was effected against the federal government thereby, even though the statute allows testamentary gifts by state domiciliaries to the state and prohibits testamentary gifts …

Future Interests-Rule Against Perpetuities-Vesting Of Residuary Estate In Trustee For Charity Subject To A Condition Precedent, Edward W. Rothe S.Ed.

Michigan Law Review

The will of testatrix provided: after the payment of debts and legacies, "I give, devise and bequeath" the residue of my estate to a charitable foundation. Held, the provision for payment of debts and legacies refers only to the quantum of estate the trustee will take and not to the time when his title vests in interest; it constitutes no condition precedent to the vesting of title in the trustee for charity. Therefore, the rule against perpetuities, which applies only to remoteness of vesting and not to postponement of possession and enjoyment, has no application. The fact that debts …

Future Interests-Inter Vivos Application Of Worthier Title Doctrine- Destruction Of The Doctor V. Hughes Rule, Daniel A. Isaacson S.Ed.

Michigan Law Review

In one case, settlor executed an instrument whereby certain property was conveyed to trustees to pay the income therefrom to settlor during her life and upon her death to convey the principal of the trust estate to such persons as she should appoint in her will, or, in default of appointment, to her next of kin as in intestacy. In addition, settlor reserved to herself the right and power to approve and join in the execution of any conveyance or mortgage of the property. After the settlor died without having exercised the power of appointment, her four children applied as …

Probate-Recent Statutes-"Streamlining'' The Administration Of Small Estates, Joseph Gricar S.Ed.

Michigan Law Review

One by-product of the research leading to the drafting of the Model Probate Code is a monograph by Professor Paul E. Basye which contains a complete survey of the statutes which simplify or eliminate the regular administration of estates. One portion of the monograph is devoted to statutes which provide methods for the administration of small estates. Since the publication of the monograph, there have been a number of statutes enacted which continue· the trend toward a "streamlined" administration of small estates; with these recent statutes this comment is concerned. Statutes which simplify or eliminate administration but which are not …

Wills-Pretermitted Heir Statutes-Need To State Parent-Child Relationship In The Will., Nancy J. Ringland S.Ed.

Michigan Law Review

Plaintiff alleged that she was an adopted daughter of testator, and, by reason thereof, claimed to be a pretermitted heir, under a statute providing that if any person make his last will and die, leaving a child not named or provided for in such will, testator in so far as regards such child shall be deemed to die intestate, and such child shall be entitled to such proportion of the estate of the testator as if he had died intestate. Plaintiff's claim was based on two provisions in the will. In the first, the testator declared that he had had …

Trusts-Resulting Trust In Registered Automobile, William P. Sutter S.Ed.

Michigan Law Review

Suit was brought by plaintiff against the administrator of the estate of X to establish title to an automobile which plaintiff alleged had been purchased with funds furnished by her. Title was in the name of deceased, X, in whose name plaintiff claimed to have registered the car because she did not drive and X would do most of the driving. The sole heir of X was permitted to intervene as a party defendant and claimed that lawful ownership had been in X. Decree was for defendants and it was directed that the car be turned over to …

Specific Performance-Oral Promise To Devise In Consideration Of Personal Services, C. J. Rice

Michigan Law Review

Decedent orally agreed that if plaintiff would render services as housekeeper, practical muse and general business associate, he would devise and bequeath one-half of his estate to her. Decedent died without having made a will, and plaintiff sought specific performance of the agreement. Held, performance of these services did not take the oral contract out of the operation of the statute of frauds because the services were capable of measurement in money, and recovery on a quantum meriut basis was adequate. Snyder v. Warde, 151 Ohio St. 426, 86 N.E. (2d) 489 (1949).

Wills-Interference With Revocation-Constructive Trust, John S. Yates

Michigan Law Review

The complaint alleged that testatrix who had executed a will leaving her whole estate to defendants attempted to make a new will containing legacies to plaintiffs, but that by means of misrepresentations, undue influence, force, and murder, testatrix was prevented by defendants from signing the new will. On appeal from dismissal of the complaint for insufficiency, held, reversed. If the allegations of the complaint be taken as true, plaintiffs are entitled to a judicial declaration that defendants hold the property under a constructive trust for plaintiffs. Latham v. Father Divine, 299 N.Y. 22, 85 N.E. (2d) 168 (1949).

Trusts-Spendthrift Trusts-Restrictions On Alienation As A Constitutionally Protected Property Right Of The Donor, Thomas Hartwell

Michigan Law Review

The beneficiary of a spendthrift trust, created in 1921, sought to renounce and terminate her life interest, thereby vesting the fee simple of the trust res in her son, as remainderman, free of the spendthrift provisions. A Pennsylvania statute, passed in 1945, authorized anyone with any interest in real or personal property to disclaim such interest, irrespective of any so-called spendthrift trust provisions. Held, prayer for termination denied on the ground that the statute, as it applied to spendthrift trusts created before its passage, was a violation of the donor-settlor's property rights under the Pennsylvania Constitution. To allow the …

Conflict Of Laws-Model Execution Of Wills Statute-Law Governing Revocation Of Will, Edward W. Rothe S.Ed.

Michigan Law Review

Decedent's will, devising Iowa realty, was denied probate in Illinois, the state of domicile, on grounds that the will had been revoked by cancellation. The devisees offered the will for probate in Iowa, under whose law no revocation was effected. The heirs contested probate on grounds that the Illinois denial of probate was conclusive and binding on Iowa courts in view of §633.49, Iowa code, 1946: "A last will and testament executed without this state, in the mode prescribed by the law, either of the place where executed or the testator's domicile, shall be deemed to be legally executed, and …

Wills-Probate Of Lost Will-Meaning Of "Lost" In Statutes Of Limitations, John A. Hellstrom

Michigan Law Review

More than twenty years had elapsed between testatrix' death and the date of filing of petition for probate of her will. Testatrix' son, a sole beneficiary, had searched for the will without success and it could not be found by the register of probate on his initial search. However, the register eventually discovered the will in his inactive files. Two other brothers had seen the will in the probate office but had said nothing. Held, the will was ''lost" within the meaning of a statute which provided that the twenty year statute of limitations should not run during the …

Trusts And Estates-Accumulations-Setting Aside Reserve For Depreciation On Trust Buildings, Hugh B. Muir

Michigan Law Review

Testator created a testamentary trust of several parcels of real property improved with apartment houses, authorizing the trustees to pay the net annual income therefrom to his sons in equal shares. The trust was to terminate when the youngest son attained the age of twenty-one, or, if he died before majority, when the second youngest son attained the age of thirty-seven, or sooner died. Remainder was to the testator's sons living at the termination date or their issue, per stirpes. Testator, while living, had maintained accounting records for the properties in such manner as to reflect an annual charge for …

Wills-Construction-Gift To Executor To Be Disposed Of In His Discretion As A General Power Of Appointment, Colvin A. Peterson, Jr., S. Ed.

Michigan Law Review

Testator, after bequeathing specific legacies, gave the residue of his estate to his executor to "dispose of any balance after the aforementioned gifts have been paid according to his wise discretion.'' The executor was the husband of testator's niece, one of the legatees, and he was well acquainted with testator. He declared his intention of disposing of the residue to testator's nieces, for whom testator had expressed concern. The trial court held the testator had attempted to create a trust by the residuary clause, which failed for indefiniteness. On appeal, held, reversed. The testator created a general power of …

Wills-Construction-Meaning Of The Phrase ''Nearest Of Kin", Daniel A. Isaacson

Michigan Law Review

Testator died in 1931, leaving his estate in trust for the life use and benefit of his wife. The will further provided, inter alia, that "Upon the death of my wife, I order and direct my said executor to pay and distribute the one-half of all my said estate unto my nearest of kin in equal shares and to pay and distribute the other half of all my said estate unto the nearest of kin of my wife in equal shares." Testator's wife died in April, 1947. The testamentary trustee filed a petition for construction of the will to determine …

Wills-Holographic-Evidence As To Testamentary Intent, Alan P. Goldstein S. Ed.

Michigan Law Review

The deceased had in her possession, at the time of her death, an envelope entitled 'Will of Ella McNair." The envelope contained three separate sheets of paper dated some nineteen months prior to Ella's death, upon which was written, entirely in the hand of the deceased, what purported to be a will. The document opened with the statement "I, Ella McNair . . . do hereby make my last will." The exordium was followed by fifteen specific bequests, and then the writing ended abruptly at the middle of the back of the third sheet. At the top of the second …

Power Of Appointment-Validity Of Exercise Subject To A No-Contest Clause, John J. Gaskell

Michigan Law Review

The decedent received under the will of her husband a general testamentary power of appointment over a remainder interest. In her will she exercised the power, providing that any person benefiting under the power who in any manner should institute, encourage, or participate in proceedings for the avoidance of any part of the will should forfeit his right to any benefits from the power or from her estate. Held, exercise of a general testamentary power of appointment subject to a no-contest forfeiture provision is valid. Marx v. Rice, 1 N.J. 584, 65 A. (2d) 48 (1949).

Trusts-Power To Revoke Through Unrestricted Power To Amend, Alan P. Goldstein S.Ed.

Michigan Law Review

Plaintiff and defendant were the settlors and trustees of a twenty year trust created in 1945. Their wives were the beneficiaries. The settlors retained the unrestricted power to amend the trust, but reserved no power to revoke. In October, 1945 the trust was amended, giving to either trustee the power to terminate the trust at any time, upon notice to the other trustee. In 1947, plaintiff gave notice of revocation to the defendant, and when this notice was ignored, plaintiff petitioned for a decree of termination. A demurrer was sustained, and plaintiff appealed. Held, reversed. ''If the power to …

Future Interests-Rule Against Perpetuities-Application To Duration Of Private Trusts, R. L. Storms

Michigan Law Review

Testator devised the locus to his daughter, V, in fee. Thereafter he executed a codicil whereby the property passed to his son-in-law, in trust, to take possession of the real estate and hold it in trust for V during her life, and "in the event of the death of my daughter . . . rent the same . . . and the said rents so received . . . he shall use for the support, sustenance, education, and benefit of the children of my daughter . . . surviving her." Held: the trust the testator attempted to create …

Trusts-Addition To Corpus By Will-Nature Of Bequest, Robert H. Frick

Michigan Law Review

Testator created an amendable inter vivos trust which he amended in 1938, 1940, and 1942. By a codicil to his will, executed in 1945, he left his residuary estate to the trustees of the inter vivos trust to be held according to the terms of that trust as amended. On certification from the probate court, held, the bequest to the trustees was valid, and it was not necessary for the trustees to give bond and account to the probate court as required of trustees of testamentary trusts by statute. In re York's Estate, (N. H. 1949) 65 A. …

Wills-An Exception To The Pennsylvania Mortmain Statute, Robert H. Frick

Michigan Law Review

Testatrix and her husband entered into an agreement that the survivor should devise property owned by them as tenants by the entireties to charities of the Catholic Church. Ten years later, testatrix, who had survived her husband, executed a will in accordance with the agreement, and died within thirty days thereafter. The lower court held that the bequest was not invalid under the Pennsylvania statute voiding religious or charitable bequests made within thirty days of death. On appeal, held, affirmed. Where a valid contract to make a will antedates the testator's death by more than the statutory period, the …

Future Interests-Contingent Construction Of Remainder Gift To Charity, Charles D. Bell S.Ed.

Michigan Law Review

Testator left property in trust to use the income, and such portions of principal as might be necessary, for the support, maintenance and education of his granddaughter during her life. Upon the death of the life tenant, the trustee was directed "to pay unto the Methodist Protestant University of Kansas City, Kansas, all the unexpended principal and interest thereof, if any, to have and to hold the same forever.'' Subsequent to the testator's death in 1904, but prior to the death of the life tenant, the remainderman assigned its interest to appellant's assignor, and then went out of existence. In …

Future Interests-Creation Of A Power By Exercise Of General Testamentary Power Held Valid, William R. Hewitt S.Ed.

Michigan Law Review

H in his will created a trust which provided for a life estate for his wife W. The trustee was directed to distribute the corpus of this trust after W's death "to such person or persons as she [W] may limit, nominate, and appoint by her last will and testament." At her death, W's will provided that part of the property over which she had a power of appointment was to continue in trust for S for life, with the power in S to dispose of the corpus absolutely by her last will. S, …

Wills-Advancements-Joint Bank Deposit As Advancement To Child, James F. Gordy S.Ed.

Michigan Law Review

Decedent opened a joint bank account in the name of himself and his daughter. Only two deposits were made, both by him, and solely from his funds. Decedent died intestate before any withdrawals had been made. The administratrix of his estate contended that the funds remaining in the joint bank account constituted an advancement to the daughter, and sought to have them brought into hotchpot in determining the distributive shares of the other heirs. A Colorado statute provided, inter alia, that when such a joint deposit is made, it may be paid to any one· of the joint depositors whether …

Future Interests-Effect Of Limited Power Of Revocation In Determining Validity Of Inter Vivos Trust Under Rule Against Perpetuities, Andrew W. Lockton, Iii S.Ed.

Michigan Law Review

Settlor created an inter vivos trust, reserving to himself the income for life plus an absolute, non-cumulative right to withdraw sums not in excess of $1500 per year. The trust was otherwise irrevocable. Measured from the date of the inter vivos transaction, some of the limitations clearly violated the rule against perpetuities; measured from the date of settlor' s death, all limitations would be valid. The trust fund, some twenty years after its creation, amounted to about $32,000. Held, the crucial date was that of creation. Ryan v. Ward, (Md. 1949) 64 A.(2d) 258.

Equity-Power To Rescind Conveyance For Fraud-Survival, Stephen A. Bryant

Michigan Law Review

Defendants obtained a deed from plaintiffs' testator shortly before he died. Plaintiffs, his residuary devisees, filed a bill seeking cancellation of the deed, alleging that it was procured by undue influence. Defendants demurred on the ground that undue influence is a species of fraud and the power to rescind a conveyance for fraud does not survive the grantor's death. The demurrer was overruled. On appeal, held, affirmed. The power to rescind was not extinguished by the grantor's death. Glojek v. Glojek, (Wis. 1948) 35 N.W. (2d) 203.

Coming Into Equity With Clean Hands, Zechariah Chafee, Jr.

Michigan Law Review

The most amusing maxim of equity is "He who comes into Equity must come with clean hands." It has given rise ,to many interesting cases and poor jokes. The maxim has been regarded as an especially significant manifestation of the ethical attitude of equity as contrasted with the common law. Pomeroy, for instance, argues that the principle involved in this maxim is "merely the expression of one of the elementary and fundamental conceptions of equity jurisprudence." Pomeroy's theory is that chancery has power to force a defendant to comply with the dictates of conscience as to matters outside the strict …

Adoption - Right Of Inheritance In Absence Of Legal Adoption-Specific Performance Of Contract To Adopt And Other Remedies, James C. Mordy

Michigan Law Review

Adoption was unknown at common law. Modern statutes permitting adoption are largely derived from Roman ideas, which were introduced into this country first through the civil law of Louisiana and later by statutes, beginning with Massachusetts in 1851.

Under the English common law, the only persons capable of inheriting property were blood relations of the deceased. On the other hand, most modern adoption statutes permit inheritance by adopted children equally with natural children. Adoption being purely statutory, the early cases denied the right of inheritance by supposedly adopted children when the statute was not strictly followed. Though still purporting to …

Descent And Distribution - Widow's Statutory Share - Widow Allowed To Elect Against Husband's Inter Vivos Trust Of Promise Under Seal, David H. Armstrong S. Ed.

Michigan Law Review

Eleven years before his death, H executed his bond under seal for $20,000 payable one year after his death. He delivered the bond to a trustee to hold upon an irrevocable trust to collect and pay the proceeds to named beneficiaries. Upon H's death with a personal estate approximately equal to the amount of the bond, his widow elected to claim her statutory share in the estate, alleging that the bond was invalid. The trustee filed a bill alleging that the trust was sufficient to bar the widow, and the widow demurred. The demurrer was overruled by the trial …

Future Interests-Rule As To Remoteness Of Vesting In California, Howard W. Haftel S. Ed.

Michigan Law Review

T devised the income of a trust to his unmarried daughter for life. If at her death there were living issue of the daughter, the income was to be distributed to such issue until 24 years after T's death. The trust was then to terminate, unless issue, who had been living at T's death, should survive the 24-year period, in which event the income was to continue to be distributed until the death of such issue. It was further provided, "if my said daughter survives me, but at the time of her death leaves no issue of hers …