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Michigan Law Review

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The Classification Of Some Powers Of Appointment, Joseph Gold Jan 1942

The Classification Of Some Powers Of Appointment, Joseph Gold

Michigan Law Review

Many problems involving powers of appointment depend for their solution on the classification of the power in question as general or special. It is now clearly established in English law and in most American jurisdictions that this classification depends on the persons to whom an appointment may be made. The fact that the power is exercisable on a contingency or in a specified manner does not affect the character of the power. Nor is it relevant for the purpose of classification that the power permits the appointment of a limited interest only. A general power is usually said to be …

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Revocation Of Wills By Subsequent Change In The Condition Or Circumstances Of The Testator, Elizabeth Durfee Jan 1942

Revocation Of Wills By Subsequent Change In The Condition Or Circumstances Of The Testator, Elizabeth Durfee

Michigan Law Review

Among the oldest rules in the law of wills are those by which a will is held to be revoked by implication by certain changes in the circumstances of the testator. The purpose of this paper is to investigate these rules. Special reference will be made to statutes, both those which deal generally with the subject and those which provide specifically for the effect of particular events, such as marriage; no attempt will be made, however to analyze the latter type of statute exhaustively. By way of introduction, a brief historical survey of the doctrine should be made.

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Future Interests - Acceleration Of Contingent Remainders After Widow's Election To Take Against Will, Harry M. Nayer Jan 1942

Future Interests - Acceleration Of Contingent Remainders After Widow's Election To Take Against Will, Harry M. Nayer

Michigan Law Review

Testator made specific bequests in the first five items of his will, one bequest being directed to his wife. In the sixth item he gave his wife a life interest in all the property remaining after satisfying items one to five. Item seven provided for a remainder in some specific realty to a niece, and item eight provided that upon the death of the wife and after satisfying item seven, the residue of the estate was to go to five named beneficiaries and to all of his nephews and nieces "then living." The widow renounced her share under the will …

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Taxation - Gift Tax - Transfer In Pursuance Of An Antenuptial Agreement As A Taxable Gift, Michigan Law Review Jan 1942

Taxation - Gift Tax - Transfer In Pursuance Of An Antenuptial Agreement As A Taxable Gift, Michigan Law Review

Michigan Law Review

Plaintiff entered into an antenuptial agreement with his intended wife whereby she waived all rights which she might acquire by virtue of the marriage in certain stock which he owned. In consideration therefor, he transferred to her two annuities and an interest as tenant by the entirety in two parcels of real estate. Plaintiff contended that such transfers did not constitute taxable gifts, and the Board of Tax Appeals decided in his favor. Held, that the transfers were taxable gifts, for a waiver of marriage rights in the property of plaintiff pursuant to an antenuptial agreement did not constitute …

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Wills - Holographic Revocation - Reference To Nontestamentary Act To Determine Will To Which Revocation Refers, William H. Shipley Jan 1942

Wills - Holographic Revocation - Reference To Nontestamentary Act To Determine Will To Which Revocation Refers, William H. Shipley

Michigan Law Review

Testator deposited his last will and testament with a trust company for safekeeping and received a receipt acknowledging the deposit. Several years later he wrote on the bottom of the receipt: "The Will and Testament above referred to I hereby declare void." The writing was signed and dated. On his death his widow alleged that he had died intestate and the probate court entered a decree recognizing the widow as sole distributee of the estate, valued at twelve million dollars. The legatees in the will instituted the present proceedings against the widow for a rule to show cause why she …

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Trusts - Honorary Trust - Authority Of A Successor Trustee, Reed T. Phalan Dec 1941

Trusts - Honorary Trust - Authority Of A Successor Trustee, Reed T. Phalan

Michigan Law Review

Paragraph 24 of testatrix' will gave to the executor and trustee, appointed under the will, $10,000 ''to be used by him to place a memorial window, or some other memorials, to cost any sum in his discretion up to the sum of One thousand Dollars, in Christ Church Cathedral, at St. Louis, Mo., and to place monuments and markers in my family subdivision of the Clark and Glasgow plot in the Bellefontaine Cemetery, at St. Louis, Mo." Soon after testatrix' death the trustee died. A successor trustee was appointed and by special order of the court was authorized to administer …

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Wills - Joint And Mutual Wills - Contracts To Bequeath And Devise - Statute Of Frauds, Charles J. O'Laughlin Dec 1941

Wills - Joint And Mutual Wills - Contracts To Bequeath And Devise - Statute Of Frauds, Charles J. O'Laughlin

Michigan Law Review

The husband and wife made joint and mutual wills, each giving to the survivor a life interest in his or her separate property with the remainder to their foster daughter, the plaintiff. The wife died first, but the husband destroyed the entire will, and took possession of all the wife's property. The husband then died intestate, and plaintiff brought suit against the heirs to enforce the dispositions made by the joint and mutual will. Plaintiff introduced evidence to show that the will was the product of a contract, and therefore irrevocable. Defendant objected on the grounds that the agreement was …

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Dower - Premarital Conveyance As Fraud On Dower, Michigan Law Review Dec 1941

Dower - Premarital Conveyance As Fraud On Dower, Michigan Law Review

Michigan Law Review

Decedent, seven days before his marriage to plaintiff, conveyed all his property to his nephew, the defendant. Plaintiff was not informed of the transfer until some time after the marriage. The property was worth $22,000, and decedent, who was at that time sixty-two years of age, was allowed to retain a life estate therein. Cancellation of a note for $2,904 owing from decedent to defendant served as consideration for the transfer. Held, the transfer was a fraud on dower since it was made without the knowledge of the intended wife for the purpose of defeating the interest which she …

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Wills - Validity Of Clause Restricting Alienation Of A Legacy During Administration, Herbert R. Whiting Nov 1941

Wills - Validity Of Clause Restricting Alienation Of A Legacy During Administration, Herbert R. Whiting

Michigan Law Review

A Pennsylvania court in Horton's Estate held that legacies are subject to garnishment by a creditor of the legatee while the property is in the hands of the deceased's executor. The case also intimated that had the testator so provided in his will this process would not lie and the creditor would have to stand by until possession of the property passed to the legatee. This last bit of dictum has since been established as the law of Pennsylvania by Holmesburg Building Association v. Badger.

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Annuities - Satisfaction Of Prior Deficiencies From Income Surplusages Of Subsequent Years, Edward H. Adams Nov 1941

Annuities - Satisfaction Of Prior Deficiencies From Income Surplusages Of Subsequent Years, Edward H. Adams

Michigan Law Review

Testatrix left her estate in trust for the purpose of paying certain sums of money annually to named beneficiaries. In a codicil to her will, she provided that in case there was insufficient income to meet expenses and pay all annuities stated, certain of the beneficiaries were to be preferred. Deficiencies occurred so that all sums were not paid, but subsequently there was surplus income which the trustees desired to apply to the prior deficiencies. Held, one justice dissenting, that the surplus after paying the annuities for the present year could be applied to the deficiencies which had occurred …

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Executors And Administrators - Liability Of Original Lessee's Estate On Assigned Long - Term Lease, Charles G. Schwartz Nov 1941

Executors And Administrators - Liability Of Original Lessee's Estate On Assigned Long - Term Lease, Charles G. Schwartz

Michigan Law Review

Defendant's testator had entered into a ninety-nine year lease with the plaintiff lessor, and shortly afterward, with the consent of the plaintiff, had assigned the lease to a corporation. The lease was renewable forever. Fourteen years later the original lessee died testate, leaving an estate of approximately $1,000,000. The lessor now seeks to have the court impound nearly all of the estate as security for future rent payments. At the time of suit there had been no default in rent installments. Held, plaintiff has no present cause of action. In the absence of any default in rent, mere privity …

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Wills - Joint And Mutual Wills - Contracts To Bequeath And Devise - Statute Of Frauds, Charles J. O' Laughlin Nov 1941

Wills - Joint And Mutual Wills - Contracts To Bequeath And Devise - Statute Of Frauds, Charles J. O' Laughlin

Michigan Law Review

Husband and wife made joint and mutual wills, each giving to the survivor a life interest in his or her separate property with the remainder to their foster daughter, the plaintiff. The wife died first, but the husband destroyed the entire will, and took possession of all the wife's property. The husband then died intestate, and plaintiff brought suit against the heirs to enforce the dispositions made by the joint and mutual will. Plaintiff introduced evidence to show that the will was the product of a contract, and therefore irrevocable. Defendant objected on the ground that the agreement was not …

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The Impact Of The Law Of Powers Upon Our Internal Revenue Laws, Montgomery B. Angell Jun 1941

The Impact Of The Law Of Powers Upon Our Internal Revenue Laws, Montgomery B. Angell

Michigan Law Review

An interesting difference in view has arisen recently in the halls of the Harvard Law School on the use of powers of appointment under the federal estate tax act. One view is that the chief efficacy today of the power of appointment lies in its capacity for use in tax evasion, which should be corrected. The other view is that there is a salutary tendency toward using sensible and flexible powers of appointment, which should be encouraged in meeting changing and difficult family situations, but which would be checked were the former view accepted. Thus we find here the age-old …

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Taxation - Gift Tax - Each Beneficiary Of Trust As Donee For Purpose Of Exemption Provision, Alfred I. Rothman Jun 1941

Taxation - Gift Tax - Each Beneficiary Of Trust As Donee For Purpose Of Exemption Provision, Alfred I. Rothman

Michigan Law Review

In 1935, the donor created a trust for the benefit of seven children. The donor in her gift tax return, pursuant to section 504b of the Gift Tax Act, excluded from the taxable amount $5,000 for each child. The commissioner's action in treating the trustee as the donee and in allowing a single deduction of $5,000 was sustained by the Board of Tax Appeals. The circuit court of appeals reversed. Held, that the taxpayer was entitled to seven deductions, one for each beneficiary under the trust. Helvering v. Hutchings, (U.S. 1941) 61 S. Ct. 653.

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Conditions And Limitations In Restraint Of Marriage, Olin Browder Jr. Jun 1941

Conditions And Limitations In Restraint Of Marriage, Olin Browder Jr.

Michigan Law Review

From ancient times it has been a practice of testators to provide for the termination of a devised estate upon the marriage of the devisee, or to make their gifts conditional upon a beneficiary's marrying in a prescribed manner. In this way, a parent may hope to extend beyond his death his influence over recalcitrant or irresponsible offspring. But restraints on marriage may have other purposes. More often than not, a testator, by limiting an estate until marriage or by providing for forfeiture upon marriage, may merely seek to assure the maintenance of a female beneficiary until a husband assumes …

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Adoption -Trusts-Wills- Adopted Child's Right To Take Under A Trust For "Issue", Michigan Law Review May 1941

Adoption -Trusts-Wills- Adopted Child's Right To Take Under A Trust For "Issue", Michigan Law Review

Michigan Law Review

The settlor established a trust with himself, his wife, and his four children as beneficiaries. Under the trust deed the property was to vest in the "lawful issue" of the settlor's children on the death of his last surviving child. Held, that the term "lawful issue" included the plaintiff (an adopted child of settlor's daughter). Walker v. Obrien, (C. C. A. 9th, 1940) 115 F. (2d) 956, cert. den. (U.S. 1941) 61 S. Ct. 829.

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Trusts - Rights Of Successive Beneficiaries To Corporate Stock Dividends - Ordinary And Extraordinary Dividends, John C. Johnston May 1941

Trusts - Rights Of Successive Beneficiaries To Corporate Stock Dividends - Ordinary And Extraordinary Dividends, John C. Johnston

Michigan Law Review

Testatrix died in March, 1935 leaving 5,471 shares of N corporation stock in two trusts with directions that a portion of the income therefrom should be paid to her son during his life with remainder over to another. At the time of testatrix' death the N corporation had a large surplus, and had been paying regular quarterly dividends from current income. From April, 1935 to December, 1937 these quarterly dividends were continued at one dollar per share less than was customary, but because of business conditions they were paid partly from the surplus which had accumulated prior to the death …

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Wills - Provisions For Construction Of The Will By Umpire Named By Testator, Alfred I. Rothman May 1941

Wills - Provisions For Construction Of The Will By Umpire Named By Testator, Alfred I. Rothman

Michigan Law Review

Testatrix created a trust and bequeathed one-fifth of the income to her son W and to S, his wife, with a proviso that if S survived her husband such income should not be paid to her in case she remarried. S divorced Wand remarried. Under a clause in the will giving them the power to determine with finality any question as to the construction or administration of the will, the executors and trustees construed the will to mean that S was not to receive any further share of the income, that testatrix would consider the divorce and remarriage during …

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Trusts - Investment Of Trust Funds In The Securities Of Private Corporations, Felicia I. Hmiel Apr 1941

Trusts - Investment Of Trust Funds In The Securities Of Private Corporations, Felicia I. Hmiel

Michigan Law Review

The trustees of a charitable trust established for the erection and maintenance of a hospital sued the state attorney general as a representative of an unnamed class of beneficiaries to secure the approval of certain investments of the trust fund. The transactions in question were investments in the common and preferred stocks of private corporations. Held, the trustees had authority to invest in the common and preferred stocks of private corporations provided they exercised a reasonable degree of care under the circumstances. Rand v. McKittrick, (Mo. 1940) 142 S. W. (2d) 29.

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Taxation Of Annuity Contracts Under Estate And Inheritance Taxes, Robert Meisenholder Apr 1941

Taxation Of Annuity Contracts Under Estate And Inheritance Taxes, Robert Meisenholder

Michigan Law Review

A glance at any authoritative encyclopedia will confirm the fact that annuity transactions of one sort or another have existed since earliest civilized times. It was not until 1762, however, that the first insurance company of the world was established; at that time began the issuance of annuity contracts similar to our modem contracts. The popularity of such contracts has increased and decreased at various periods in Great Britain. But in the United States, they have assumed importance only since the beginning of this century and have attained a relatively widespread popularity only since the years of prosperity in the …

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Contracts - Consideration - Moral Obligation To Pay For Services Rendered In Past, Michigan Law Review Apr 1941

Contracts - Consideration - Moral Obligation To Pay For Services Rendered In Past, Michigan Law Review

Michigan Law Review

After decedent's wife died, claimants, her mother and sister, at the request of the decedent, broke up their home and came to live with him, to keep house for him and to care for his children. These services continued for ten years, at which time the decedent gave claimants his promissory notes aggregating $2,000. They entered these notes as claims against his estate. Held, the claimants' services, even if rendered gratuitously, were performed at the decedent's request and raised a moral obligation which was sufficient consideration for the notes. In re Schoenkerman's Estate, (Wis. 1940) 294 N. W. …

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Taxation - Jurisdiction To Tax The Equitable Interest Of A Trust Beneficiary, Rex B. Martin Apr 1941

Taxation - Jurisdiction To Tax The Equitable Interest Of A Trust Beneficiary, Rex B. Martin

Michigan Law Review

Pennsylvania levied a property tax on a resident beneficiary's equitable interest in a New York trust. The settlor of the trust, a New York resident, had created the trust there and both the trustee and the stocks and bonds comprising the corpus were in that state. The beneficiary had no control over the disposition or management of the corpus and was entitled merely to the income of the trust for her life. The Pennsylvania Supreme Court upheld the tax. On appeal to the United States Supreme Court, held, in a per curiam decision without opinion, that the state court's …

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Trusts - Confidential Relationship - Imposition Of Constructive Trust On Transferee Of Land On Oral Promise To Reconvey, Michigan Law Review Apr 1941

Trusts - Confidential Relationship - Imposition Of Constructive Trust On Transferee Of Land On Oral Promise To Reconvey, Michigan Law Review

Michigan Law Review

Plaintiff was induced to transfer his half interest in realty to his mother, because of her and his sister's fear that the income from the land, to which the mother was entitled during her life, might be tied up by the son's wife with whom he was having marital difficulties. There was no written evidence of the trust, but the mother had promised that she would act as trustee until the marital difficulties were settled, and then reconvey. Thereafter she conveyed to the sister, who, with knowledge of the agreement, refused to reconvey. Held, because of the confidential relationship …

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Wills - Construction - Limitation Of Defeasance Clause, Herbert R. Whiting Apr 1941

Wills - Construction - Limitation Of Defeasance Clause, Herbert R. Whiting

Michigan Law Review

Testatrix died leaving as her only heirs at law and next of kin a son, Thomas, and a grandaughter, Malinda, to whom she devised her estate in approximately equal shares. At the time she executed her will Thomas was twenty-two years of age and unmarried and Malinda was eleven. The principal case turns on the construction of a clause in her will, devising a parcel of land to Malinda, which reads as follows: "I give and bequeath ... the same to the said Malinda McK. Young and her children but if the said Malinda McK. Young shall die before she …

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Wills - Reference To Other Writings - Incorporation Of A Letter Written Subsequent To A Will But Prior To A Codicil, Michigan Law Review Apr 1941

Wills - Reference To Other Writings - Incorporation Of A Letter Written Subsequent To A Will But Prior To A Codicil, Michigan Law Review

Michigan Law Review

March 25, 1932, testator made a will bequeathing money to his executors to be distributed by them "as shall be directed by me in a letter that will be found in my effects . . . which . . . will be dated March 25, 1932." The letter was in fact dated July 3, 1933. Subsequent to the latter date a codicil was executed reaffirming the will but failing to make special mention of the letter. On the first appellate hearing the court refused to allow the letter to be incorporated by reference, because it was not in existence at …

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Taxation - Death Taxes - Gifts In Contemplation Of Death, Kenneth J. Nordstrom Mar 1941

Taxation - Death Taxes - Gifts In Contemplation Of Death, Kenneth J. Nordstrom

Michigan Law Review

The problem arising when estate and inheritance taxes reach out and attempt to include transfers which have been completed inter vivos are of current importance in state and federal litigation. A survey of the cases shows that the courts and legislatures are making a constant effort to fix and determine a workable rule for the application of a tax on transfers which have been made in life under circumstances so closely related to death that they may, in nature and effect, be properly classified as transfers made in contemplation of death. The problem is of no small moment, for perplexing …

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Rule Against Perpetuities - Construction Of Wills, Kenneth J. Nordstrom Mar 1941

Rule Against Perpetuities - Construction Of Wills, Kenneth J. Nordstrom

Michigan Law Review

Testator devised properties to trustees to provide his wife and son with an income for life. The will directed that upon the death of the survivor the corpus should be distributed to testator's grandchildren. A later codicil changed the will by providing that the trust principal and undistributed earnings left at the death of the survivor of the life tenants should be payable to the grandchildren when they should reach the age of thirty-five years. No provision was made for the continuance of the trust after the death of the life beneficiaries. Upon the death of the life beneficiaries, an …

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Trusts - Tort Liability Of Trustee In His Representative Capacity, Reid J. Hatfield Feb 1941

Trusts - Tort Liability Of Trustee In His Representative Capacity, Reid J. Hatfield

Michigan Law Review

Plaintiff brought suit to recover damages for injuries allegedly sustained because of the unsafe condition of a hotel building owned and operated by the defendant trustee. The trustee was an insolvent bank and trust company in the hands of the state superintendent of banks, who was also joined as defendant. The prayer was for a "judgment against the defendants in their fiduciary capacity toward the trust." On appeal of the lower court's judgment sustaining defendants' demurrer, held, that the trustee could be sued in his representative capacity. Carey v. Squire, 63 Ohio App. 476, 27 N. E. (2d) …

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Wills - Legacy To Creditor - Presumption Of Satisfaction Of Debt, Michigan Law Review Feb 1941

Wills - Legacy To Creditor - Presumption Of Satisfaction Of Debt, Michigan Law Review

Michigan Law Review

Plaintiff, a bank employee and personal friend of the testatrix, rendered to her and her late husband frequent and considerable services in connection with the management of their property. He received no compensation for these services, but both wife and husband indicated that he was to be compensated in the will of the survivor of the couple. There was evidence that the amount of such compensation was to be as much as $12,000. Actually, plaintiff received about $3,000 by the wife's will. It was not indicated in the will whether or not the legacy was intended to satisfy the indebtedness. …

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Wills - Construction Of Technical Terms, Michigan Law Review Feb 1941

Wills - Construction Of Technical Terms, Michigan Law Review

Michigan Law Review

Testatrix' will executed in 1916 provided, inter alia, "In case of the death of any of the above named children, I give . . . his share to his heirs." A son of testatrix died in 1929, survived only by his widow, complainant here, and his mother. In March 1938, the New York Decedent Estate Law was amended to provide that the word "heirs" when used in a statute, will or in any other written instrument prescribing the devolution of property rights, without express or implied declaration to the contrary, should be construed to mean the distributees, including a surviving …

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