Estates and Trusts Commons^™

Soldiers And Sailors-Civil Relief Act Of 1940-Application To Decedents' Estates, Secured Obligations, Installment Contracts, Insurance, Taxes, And Assessments

Michigan Law Review

On October 17, 1940, the Soldiers' and Sailors' Civil Relief Act became effective. The discussions which follow, written by different authors, do not cover the entire act, but only the parts indicated by the various headings.

Abstracts Of Recent Decisions, Benjamin M. Quigg, Jr.

Michigan Law Review

The abstracts consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.

Abstracts, Katherine Kempfer

Michigan Law Review

The abstracts consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.

Future Interests - Charities - Validity Of Accumulation For Charity When Impracticable To Accumulate Desired Amount, Hobart Taylor, Jr.

Michigan Law Review

An executor petitioned for instructions under a will which devised the residuary estate to trustees to be accumulated in trust until sufficient to purchase a farm upon which a home for the aged and indigent would be established. The trustees waived all interest in the fund, which amounted to less than two hundred dollars. Held, there is no reasonable prospect of the accumulation becoming sufficient to establish the charity, or to maintain it if it should be established. The contingencies are thus so remote that the trust fails for impracticality. Green v. Parker, (N.H. 1943) 32 A. (2d) …

Future Interests - Taxation - Evidence - Presumption As To The Possibility Of A Woman Bearing Children, Hobart Taylor, Jr.

Michigan Law Review

Testatrix, a resident of Massachusetts, set up a trust of her residuary estate for her two daughters, the principal to be paid to their issue, but if either should die without issue, her share to be paid to certain named charities. On probate, the remainder to charity was held to be void. The income tax law of Massachusetts imposed a three per cent levy on income accumulated for contingent future interests, but exempted from taxation certain interests of nonresidents, including vested remainders not subject to being divested. The daughters, nonresidents, contended that their interests should not be taxed as contingent …

Powers -Testamentary Power - Enforceability Of Contract To Exercise, Hobart Taylor, Jr.

Michigan Law Review

Charles Wetmore and Morgan Kent, beneficiaries of a trust under the will of their mother which was probated in 1913, entered into an agreement whereby Kent agreed, inter alia, to devise one ninth of the corpus of the estate to Kent's children living at the time of his death in consideration of a promise by Wetmore to exercise a testamentary power of appointment given by the will of the testatrix over one sixth of the corpus in favor of Kent, or if he be deceased at the time Wetmore's will became effective, in favor of such persons as Kent should …

Trusts - What Constitutes Revocation When No Method Specified, Dickson M. Saunders

Michigan Law Review

By trust deed of 1927, settlor conveyed two mortgages {the first for $5,200, and the second for $1,000, both given by Harry E. Hough and wife) to trustees, in trust for herself for life, and providing for certain disposition upon her death. The trust deed was revocable with reserved power in the settlor to convey, release or otherwise dispose of the property. In 1928 the settlor released both mortgages but took in lieu thereof one mortgage for $6,200 from the same mortgagors on the same property. This substitution was effected to accommodate the mortgagors and no money changed hands. The …

Executors And Administrators-Will Contest-Right To Recover Cost From The Estate, Dickson M. Saunders

Michigan Law Review

Letters testamentary were issued on April 5, 1938 to the Emporium Trust Company under the will of Henrietta Fetter. By the terms of the will the trust company had been named executor and also trustee of the residuary trust. Two-thirds of the income of this trust was to go to the testatrix' son George for life, and the other third to the testatrix' brother, Fred Morse, for life, with remainders over upon the death of the life tenants. On June 20, 1938, George Fetter appealed from the probate of the first will, alleging it was superseded by a later holographic …

Principal And Agent-Whether Principal Constructive Trustee Of Money Secured By Fraud From Third Person To Make Up Embezzled Funds, Dickson M. Saunders

Michigan Law Review

Taggart embezzled from his principal, defendant American National Insurance Company, $1,000 received from Miss Mortensen for a deferred life annuity. Subsequently, in a transaction with plaintiff, wholly outside the scope of his general receiving agency for the insurance company, Taggart secured $1,200 through fraud. From this Taggart then replaced the $1,000 due his principal. In suit by plaintiff to recover, Taggart defaulted; liability of the insurance company is based upon the theory that $1,000 has been traced into its hands, and because of Taggart's fraud, this sum became impressed with a constructive trust in favor of the plaintiff. Held, …

Abstracts, Katherine Kempfer

Michigan Law Review

The abstracts consist merely of summaries of the facts and holdings of recent cases and are distinguished from the notes by the absence of discussion.

Eminent Domain - Disposition Of Award When Land Is Subject To Life Estate And Remainder, Mary Jane Morris

Michigan Law Review

Testator devised property to his adopted daughter for life and remainder to her children, but should she leave no children at her death, then the estate was to go to a named charity. The United States took title to this property and paid the compensation into court. The life tenant and one of the five children filed a motion that the life tenant be permitted to withdraw the funds arising from the condemnation for the purpose of having them immediately reinvested in other real estate and/or government securities. This motion was approved by the guardian ad litem for the one …

Executors And Administrators-Right Of Creditors Of A Decedent To Recover From Distributees After The Estate Is Closed

Michigan Law Review

A recent California decision suggests a problem of some difficulty in the administration of decedents' estates. In Dabney V. Dabney, it appeared that a decedent had, in his lifetime, contracted to pay the plaintiff $100 and $350 respectively, monthly, as long as plaintiff should live, according to the terms of two contracts. In distributing the estate the court, as provided in the California Probate Code, had set aside a sum of money for the purpose of paying these monthly installments. The estate was then distributed, defendant herein being the principal distributee. On February 17, 1941, there remained only $216 …

Corporations - Foreign Corporations - Effect Of Complying With Domestication Statute, E. George Rudolph

Michigan Law Review

Decedent was a resident of Nebraska and all his property was located there. By his will he left the residue of his estate to a number of charitable institutions including the Topeka Branch of the Women's Foreign Missionary Society of the Methodist Episcopal Church, a corporation incorporated in Kansas. The Topeka Branch claimed exemption from the Nebraska inheritance tax because it was a domestic charitable corporation, having complied with the Nebraska statute providing, "Any corporation organized under the laws of any other state . . . which has filed . . . with the secretary of state of this state, …

Powers - Less Than Outright Appointments, H. Marshall Peter

Michigan Law Review

The decedent created a voluntary trust, providing for income payments to himself during his life and upon his death to X for her life, and directing the trustee "at her death to pay over and deliver the principal of said trust to whomsoever may be designated by her by Will or other testimentary instrument . . . . " In the event that she failed to make such designation, her descendants, or, if there were none, her heirs were to receive the principal. X in her will gave her husband a life estate and, on his death or remarriage, bequeathed …

Key Problems In The Apportionment Of Increase Between Successive Interests In Personalty, Erwin Esser Nemmers

Michigan Law Review

It has been said with some amount of truth that "Perhaps no other question in the law of future interests has called forth such a voluminous literature as the question of the allocation of dividends and the other accruing benefits as between the life tenant and the remainderman of shares of corporate stock."

The present writer's purpose in adding to the material on the subject is to show the relation to the case law of the rules set forth in the Restatement of Trusts and the Uniform Principal and Income Act. While difficult problems of apportionment arise in regard to …

Wills-Construction-Implied Condition Of Survival With Particular Reference To Michigan Law

Michigan Law Review

If the language of a will creates a future interest, when is there an implied condition that the one to whom the interest is given must survive the termination of prior interests? In general, this question is answered by applying the proposition that the law prefers to construe an interest as vested rather than contingent and as indefeasible rather than defeasible. Hence it would seem that, in order to imply a condition precedent of survival, there must be some language on which to base the implication. This, however, does not tell the entire story. There are numerous special rules applicable …

Trusts - Constructive Trusts - Protection Of Trade Secrets And Like Confidential Information, E. George Rudolph

Michigan Law Review

Plaintiff hired a seismograph company to make surveys of certain land for the purpose of locating oil and gas. The results of the survey were favorable. An employee of the seismograph company communicated the results to the defendant who thereafter leased the land. Plaintiff brought suit to have defendant declared constructive trustee of the land for plaintiff. Held, that the relief could not be granted since defendant might have leased the land without such information. Ohio Oil Co. v. Sharp, (D. C. Okla. 1942) 45 F. Supp. 969.

Wills - Class Gifts - Language And Circumstances Necessary To Constitute, Michigan Law Review

Michigan Law Review

By the second and third clauses of his will Lester Evans bequeathed to his son and daughter $35 each. The fourth clause disposed of "all the rest, residue, and remainder of my estate" to seven named persons of no relation to the testator or among themselves. One of the named persons was his bride-to-be, and she was included for the purpose of carrying out the antenuptial contract to leave her one-seventh of his estate if he were to predecease her. The clause concluded, "each person shall take an equal undivided one-seventh (1/7) share, absolutely and forever." The fifth clause explained …

Wills - Incorporation Of Deed By Reference - Construction

Michigan Law Review

The sixth clause of testator's duly executed will was as follows: "I have already deeded to my niece, Alta J. Pullman, the southeast quarter (SE¾) of section eight (8), township twenty-four (24), north, range four (4), east of the 6th P. M. in Cuming county, Nebraska, and for that reason I do not devise any real estate to her in this Will." About thirteen months prior to the execution of this will, testator and his wife executed a deed conveying this tract of land to Alta J. Pullman. The deed was never delivered, and was not executed in accordance with …

Powers - Excluding Creditors Of The Donee Of A General Power By Express Provisions By The Donor, S. W. Boyce, Jr.

Michigan Law Review

There is very little authority upon this subject; lawyers seemingly assume that the picture is complicated enough without venturing into new fields. In only two jurisdictions are there actual reported cases where the donor has tried by specific provisions to restrain creditors of the donee.

Powers - Rights Of Donees' Creditors Against Property Subject Thereto When The Power Is General And Is Exercised By Will, Charles Wright, Ill

Michigan Law Review

In general it is said that the majority of jurisdictions in the United States allow creditors of the donee of a general power of appointment, exercisable by deed or will, or by will only, to reach the appointive property when the power is exercised by will, if the donee's personal estate is insolvent and if the appointment is to a volunteer. It would appear from a survey of the authorities dealing with the question that only twenty states have spoken on the subject at all. Of that number only sixteen have decisions which can, by any stretch of the imagination, …

Constitutional Law - Impairing The Obligation Of Contracts - New York Decedents' Estate Law, Robert Walsh

Michigan Law Review

By a premarital agreement executed in 1922 the wife of decedent waived all rights in his estate. The waiver was signed but not acknowledged. In August, 1930, decedent executed a will leaving $2,000 to his wife. In September, 1930, there went into effect an amendment of the Decedents' Estate Law of New York, which gave to a widow an election to take under or against the will of her husband and provided that such election could be waived only by an instrument signed and acknowledged. The statute applied only to wills executed after September, 1930. The decedent executed a codicil …

Wills - Interpretation Of "Existence" As Used In Statutes Providing For Probate Of Lost Or Destroyed Wills, Edward P. Dwyer, Jr.

Michigan Law Review

Testator, about to undergo a serious operation, executed a will leaving $5,000 to his fiancée and the balance of his estate to his brother Louis. Three days later, after the operation had been performed and when testator was apparently on the road to recovery, he informed a lawyer that he desired to give his fiancée a check for $5,000 at once in lieu of the bequest to her in the will, and desired the rest of his estate to go to Louis. Testator mistakenly told the lawyer he had no other relatives. The lawyer then advised him to have the …

Executors And Administrators - Double Domicile - Inheritance Taxation Of Intangibles, Robert Walsh

Michigan Law Review

Plaintiff was appointed executor by a Georgia court which found that decedent had been domiciled in Georgia. Defendant was appointed administrator by a New York court which found that decedent was domiciled in New York. Plaintiff and defendant were interpleaded in the Delaware court by a Delaware corporation to determine who was entitled to shares of stock owned by decedent in the Delaware corporation. Plaintiff claimed that the Delaware court was required to give full faith and credit to the Georgia finding that decedent was domiciled in Georgia. The Supreme Court of Delaware found that decedent was domiciled in New …

Trusts - Accumulation Of Income, James L. Mccrystal

Michigan Law Review

Testator left his estate in trust until twenty-one years after the death of two nieces, the trust income to be used first to pay several annuities and the remainder "to be re-invested by the trustee for the increase and benefit of this trust fund." At the expiration of twenty-one years after the death of both nieces the trust was to terminate and the estate to be distributed. The lower court held that, while the trust did not violate the rule against perpetuities nor the District of Columbia statute as to the suspension of the power of alienation, the trust income …

Trusts - Inter Vivos Trust As A Substitute For A Will - Effect Of Settlor's Retention Of Control, H. Marshall Peter

Michigan Law Review

A executed an instrument without the formalities of a will, transferring securities to B. It was provided therein that B should hold, manage, sell, and invest according to A's written directions, and should retransfer to A if A so directed. A further reserved the right to alter the "ultimate beneficiary" and also to terminate the trust on notice to B, in which event B should retransfer to him securities and investments as well as net income otherwise payable to A at fixed intervals during A's life. On A's death, the trust was to become absolute …

Taxation - Federal Estate Taxation Of Life Insurance Effect Of Treasury Decision 5032 Amending Articles 25 And 27 Of The Estate Tax Regulations, Lloyd M. Forster

Michigan Law Review

Stated briefly, the effect of T. D. 5032 has thus been to revert to the original test of payment of premiums for determining when insurance has been "taken out" by the decedent, and to abandon ownership of the policy as a basis for including the proceeds in decedent's estate, thereby departing from the fundamental theory of estate taxation. Thus the regulations, in closing one door to tax avoidance, apparently open another. While this avenue of escape may be narrowed by judicial interpretation, a change in the regulations probably will be required to seal it completely.

Constitutional Law - Due Process - Jurisdiction Of A State To Tax The Exercise Of A Power Of Appointment, Charles J. O'Laughlin

Michigan Law Review

Decedent's father, a resident of Massachusetts, by his last will created a trust of the residue of his estate, consisting of intangibles, and gave one share to decedent for life, with remainder to whomsoever decedent should appoint by will. The trust was administered in Massachusetts and there was no question as to that state's power to tax. Decedent, a resident of New York, appointed his share to his widow. The New York courts held that although the interest of the decedent fell within the provisions of the New York tax law imposing a tax upon the transfer of the net …

Taxation - Federal Estate Tax - Powers Of Appointment - When Property Subject Thereto Is Taxable As Part Of Donee's Estate - Effect Of A Compromise, Charles J. O'Laughlin

Michigan Law Review

The decedent was a beneficiary of a trust established by his father and of two other trusts created by his mother. From his father's trust the decedent was to receive a portion of the income prior to his twenty-eighth birthday, when he was to receive the principal and accumulated income. His mother's trusts gave him the income for life, subject to certain restrictions before he attained the age of twenty-eight. Under all three trusts he had a general testamentary power of appointment. In case of nonexercise of this power, decedent's descendants were to be default takers under the donor's will, …

Trusts - Division Of Proceeds From United States Savings Bonds Between Life Tenant And Remainderman, William H. Shipley

Michigan Law Review

Testator devised the residue of his estate in trust to pay the income to his wife for life and on her death to distribute the corpus to the children of the testator. The trustee bought ten-year bonds of the United· States Government known as United States Savings Bonds. The bonds did not bear interest payable at stated intervals, but were sold at a price sufficiently below their maturity value to yield a return equal to 2.9 per cent per annum, compounded semi-annually, it the bonds were held for the full ten years. The holder of such bonds may present them …