Estates and Trusts | Open Access Articles | Digital Commons Network™

Trusts-"Swelling Of Assets" Theory In Tracing Misapplied Funds Jan 1936

Trusts-"Swelling Of Assets" Theory In Tracing Misapplied Funds

Michigan Law Review

Plaintiff's husband gave certain bonds to a college, to be held in trust until the death of the donor and his wife, and then to be added to the endowment funds of the college. The college was also to pay an annuity to the donor while he lived, and to his wife for life if she survived him. The cestui was given a right to revoke the trust and take back the bonds if the annuity was not paid. The college, without notice to the cestui, sold the bonds and used the funds to install a heating plant in its …

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Trusts -Termination Of Trusts Where Life Beneficiary Acquires Remainder - Proof Of Impossibility Of Issue Jan 1936

Trusts -Termination Of Trusts Where Life Beneficiary Acquires Remainder - Proof Of Impossibility Of Issue

Michigan Law Review

Plaintiff was named life beneficiary of a trust, the legal remainder being disposed of to her children, or if she died without issue, then to H. H died before the plaintiff; and the plaintiff, establishing that she is childless and no longer capable of having issue, seeks a termination of the trust on the ground that the now intestate remainder has become vested in her, the sole heir at law of the settlor. Held, both an unrestricted life estate and the legal remainder being in the plaintiff, the trust can be terminated. White v. Weed, (N. H. …

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Trusts-Process By Which Creditor May Reach Cestui's Interest In Spendthrift Trust Jan 1936

Trusts-Process By Which Creditor May Reach Cestui's Interest In Spendthrift Trust

Michigan Law Review

The former husband of the principal defendant created a trust for her benefit with a clause restraining alienation and barring attachment by creditors. Plaintiff, holding a judgment against the cestui que trust, brought a creditor's bill in equity against the trustee and cestui. Held, creditor's bill dismissed, but the exemption of cestui's interest from the claims of creditors was invalid, and plaintiff might recover by amending and bringing an action at law with trustee process. Brahmey v. Rollins, (N. H. 1935) 179 A. 186.

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Bills And Notes--Conditions-Negotiable Despite Reference To Trust Agreement Jan 1936

Bills And Notes--Conditions-Negotiable Despite Reference To Trust Agreement

Michigan Law Review

Bonds, stolen from the owner, were subsequently acquired by a bona fide purchaser who received payment from the obligor. The owner sued the obligor on the ground that the bonds were non-negotiable. The first paragraph in each bond contained an unconditional promise to pay. The second and third paragraphs contained the following clauses: "This bond is one of a series . . . executed and delivered in accordance with and subject to the provisions of the Trust Mortgage hereinafter referred to and in pursuance of resolutions of stockholders. . . . The payment of this bond and of the coupons …

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Powers-Exercise Of Power By Residuary Clause In Will-Admissibility Of Evidence To Show Donee's Intent Jan 1936

Powers-Exercise Of Power By Residuary Clause In Will-Admissibility Of Evidence To Show Donee's Intent

Michigan Law Review

Testator was the donee of general powers of appointment conferred upon him by his mother's deed and will. By the ninth clause of this will he gave to two named persons "all the rest and residue of my personal property . . . to be divided equitably among the members of said two families as they may in their uncontrolled discretion decide." Held, this did not exercise the powers of appointment. Evidence was admitted to show the testator's knowledge of the nature and scope of his property and of the fact that his estate was being diminished by the …

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Trusts-Deviation From Terms Of Trust In Emergency Jan 1936

Trusts-Deviation From Terms Of Trust In Emergency

Michigan Law Review

In his will the testator made several specific legacies, including one to his widow, who was also to receive a specific devise of real estate. The remainder of the estate was given in trust, to pay the income to the widow during her life. It was also provided that in case there was not sufficient money to pay the bequests, the trustees "shall dispose of my real estate, but not for a period of three years after my decease, if they deem it necessary and proper" and payment of the bequests in that case was not to be made till …

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Wills-Construction-"Personal Property" As Including Real Estate Jan 1936

Wills-Construction-"Personal Property" As Including Real Estate

Michigan Law Review

Testatrix, a German woman, not particularly familiar with the English language, drew a holographic will making certain specific bequests of money and bonds and concluding by giving all her "personal property" to three named beneficiaries. Testatrix died leaving both realty and personalty. Held, both realty and personalty passed under the term "all my personal property." "My personal property" was construed to mean "my own property." In re Olsen's Estate, (Cal. App. 1935) 50 P. (2d) 70.

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Future Interests-Rule Against Perpetuities-Application To Estate Created Under Power Of Appointment By Will Only Jan 1936

Future Interests-Rule Against Perpetuities-Application To Estate Created Under Power Of Appointment By Will Only

Michigan Law Review

The testator died in 1872 leaving to testatrix in trust certain property over which she was given a general power of appointment by will. The testatrix died in 1928 leaving this property in a trust which was found to violate the rule against perpetuities. In discussing this, the question was raised whether in testing the validity of the estate created by the power of appointment, the period of the rule is calculated from the time of the creation of the power of appointment or from the time of its exercise. Held, that the permissible period is to be measured …

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The Secured Creditor's Share Of An Insolvent Estate, Fred T. Hanson Jan 1936

The Secured Creditor's Share Of An Insolvent Estate, Fred T. Hanson

Michigan Law Review

Liquidation proceedings destroy the creditor's independent right to enforce full payment of the debt or in any way obtain a new advantage over other creditors. This change in the normal incidents of property in a debt is necessary in order to distribute the limited fund equitably. But in applying this principle, previously acquired rights by way of lien upon specific property must be respected.

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Powers Of Appointment--Residuary Clause, Harry Porter Dies Jan 1936