Estates and Trusts Commons^™

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 …

Wills - Precatory Gifts

Michigan Law Review

In the second item of the will testator gave to his wife all of his property "as her absolute property." In the third item the testator provided: "it is hereby directed that my sister [plaintiff in this case] . . . be given one hundred fifty and no/loo dollars monthly during her natural life and one hundred dollars monthly to my brother-in-law Charles E. McCarle . . . in the event that he survives his wife above mentioned." The fourth item provided that in case the testator's wife predeceased him, one hundred dollars monthly should be paid to each of …

Trusts - Cy Pres Doctrine -Application To Charitable Trusts - Accumulations

Michigan Law Review

A bequeathed the residue of her estate to the Trustees of Bowdoin College in trust to apply two-thirds of the annual income to the purposes of the Medical School of Maine and to accumulate the other one-third with another fund left by A for the same purpose until the whole should reach $50,000, when all should be applied for the purposes of the Medical School of Maine. The Medical School ceased to function, and the trustees applied to the court for instructions. Held, that there was a general charitable intent, indicated by the use of the word "purposes," and …

Wills - Gift's - Construction Of Instrument

Michigan Law Review

Decedent had lived with plaintiff and her parents. In 1932, after telling plaintiff's parents that he had some money in the bank, decedent said, "I got a will here . . . I understand I have got to have two signatures." Both parents, at his request, signed the instrument below.

"Dear Carlotta

"I give to you my money in Live Stock Bank.

"Hans Larsen

"April 16, 1932

"Witness: Michael C. Kelley

"Mamie V. Kelley."

Decedent put the instrument in his bank book and took it into the other room where plaintiff was sitting. He said, "Carlotta, I will give you …

Deeds-Instrument In Form Of Contract For Sale Of Land As Gift

Michigan Law Review

Decedent executed and delivered to his sister, the petitioner, in a sealed envelope an instrument in the form of an executory contract for the sale of land by the terms of which the decedent promised to convey to the petitioner his undivided two-thirds interest in a certain building and lot. The execution of the instrument was not the result of any agreement and no consideration was paid, although receipt of payment in full was endorsed on the back of the instrument. After decedent's death the envelope was produced and the probate court under a statutory authority ordered a conveyance to …

Wills - Revocation By Change Of Circumstances

Michigan Law Review

The testator executed his will providing that a termination of the marriage relation would make the provisions for his wife null and void. Subsequently, they separated, and, in anticipation of a divorce they agreed upon and carried into effect a property settlement providing that the wife should receive certain real estate, stock, and money in consideration of her surrender of all her rights of dower, alimony, and claims of support. A short time thereafter the wife sued for a divorce, but the action was discontinued when, in accordance with the testator's wishes, she went to live with him until his …

Future Interests - Rule Against Perpetuities Applibd To A Charitable Trust

Michigan Law Review

The testator devised property to a trustee to accumulate the income for the period of a life in being and twenty-one years. Then a corporation was to be organized to receive the fund as trustee in order to apply it to a named charitable purpose. Held, that the gift does not contravene the rule against perpetuities on the grounds that the gift takes effect in possession the instant the prior period ends, that beneficially the gift vests in charity at the death of the testator, and that the rule does not apply to charitable gifts. First Camden National Bank …

The Meaning Of "Heirs" In Willsa Suggestion In Legal Method, Lewis M. Simes, Lorentz B. Knouff, George E. Leonard Jr.:

Michigan Law Review

A major task of the lawyer is the prediction of judicial action. No less than a quarter of a century ago Justice Holmes referred to the law as a body of "systematized prediction." Today legal scholars are not content to base their predictions solely upon the body of rules announced in judicial opinions. By means of elaborate fact studies they have sought to ascertain how rules of law actually function in society. Not only have these studies dealt with problems of procedure and the administration of courts, they have also invaded the fields of commercial and property law. Among such …

Trusts - Compromise Agreement As Means Of Terminating Testamentary Spendthrift Trust

Michigan Law Review

In Rose v. Southern Michigan National Bank, the Michigan Supreme Court refused to terminate a spendthrift trust composed of both real and personal property, although to end litigation upon the will all the parties in interest had signed a compromise agreement to terminate the trust according to the Michigan statute. There was no objection as to the fairness of the agreement, upon which ground the court might have refused to sanction the compromise under the statute. The decision seems to have been based upon the theory that to give effect to the compromise agreement would defeat the purpose of …

Wills - Pretermitted Heirs

Michigan Law Review

In an action based on section 1550 of the Compiled Laws of 1929 providing that a child omitted from the will of a parent shall share as in intestate succession unless it appears that such omission was intentional, the question arose as to whether this intent could be shown by extrinsic evidence. Held, such evidence is admissible. O'Neall v. Her, 254 Mich. 631, 236 N. W. 890 (1931).

Wills-Restoration Or Revival Of A Will Upon The Revocation Of A Subsequent Instrument Revoking The Prior Will

Michigan Law Review

A recent Pennsylvania case, In re Ford's Estate, is an interesting example of a situation which has left the courts in decided conflict. The decedent had properly executed two wills. On his death bed he caused the later will, which contained the usual clause expressly revoking all prior instruments, to be torn. At the time he stated that he wished his son, his only heir at law and next kin, to have all his property. The evidence indicated that the decedent had entirely forgotten the existence of the prior will. The court, relying upon the expression of the decedent's …

Wills-Gifts To Named Beneficiaries And To A Class-Per Stirpes Or Per Capita

Michigan Law Review

Action by an executor for the construction of a will in which the testator had given a gift to certain of his children, naming them, and to two sets of grandchildren one of which was the offspring of a child, deceased at the time of the execution of the will. The gift provided that they were to participate "share and share alike." In two subsequent clauses of the will the testator provided for trustees to take care of the "portion" left to the grandchildren. The court held, that a sufficient intent was shown so as to justify a distribution …

Trusts-Devices For Defeating Rights Of Creditors

Michigan Law Review

Attempts to protect property rights from the claims of creditors are faced at common law with the initial objection that restraints on the power of alienation are wholly ineffective. An exception has been recognized in this country in the case of equitable interests for life or for years. This exception, criticized severely at the time it was first recognized, has established itself in the law of most states in this country, though rejected in two jurisdictions.

Powers-Wills-Exercise By Will Of Special Power Subsequently Conferred

Michigan Law Review

T by will not only exercised a power already given her in favor of her husband but also any powers of appointment which she might derive from her father's will or otherwise. T's father subsequently executed a settlement allowing T to appoint to her husband "if she shall by deed or will appoint." T died without making a new will. Held, there was no valid exercise of the power, for the donor contemplated an act future to the settlement, as is shown by the words "if she shall." In re Bower, [1930] 2 Ch. 82.

Wills-Construction-Right Of Adopted Child To Take Under Provision For Children Of Adoptive Parext

Michigan Law Review

The trustee under the will sued for a construction of a clause providing for a gift to testator's children. The dispute was between the natural children of the testator and an adopted daughter, who claimed under the clause as one of the "children," though a prior clause gave her $1, naming her as testator's adopted daughter. The Rhode Island statute provided that adopted children be deemed for inheritance purposes the same as if natural children. The court held that the adopted daughter did not take with the natural children under the clause in question. Union Trust Co. v. Campi (R. …

When Revocable Trusts Are Subject To An Inheritance Tax, Edward M. Stimson

Michigan Law Review

A settlor transferred property to trustees upon trust to pay the income to himself during life and after his death to his children and, ultimately, to divide the principal. The settlor reserved a power to revoke the trust and also to change its terms. Subsequently a law was passed taxing successions, i.e., all transfers by will or inter vivos, "made or intended to take effect in possession or enjoyment after the death of the grantor or donor."

Wills--Admissibility Of Parole Evidence To Show Mistake Of Scrivner

Michigan Law Review

Perhaps very few legal questions have given rise to more controversy than that of the admissibility of parol evidence to show the intent of a testator. An interesting phase of the general question was presented to the supreme court of errors of Connecticut in the recent case of Stearns v. Stearns, (Conn. 1925) 130 Atl. 112. Parol evidence was offered to show that the testatrix intended to devise and bequeath all the residue and remainder of her estate to her husband and that instructions were so given to the scrivener but he failed to draft the will in accordance …

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.

The Statute Of Uses And Active Trusts, Edgar N. Durfee

Articles

To explain the survival of uses, alias trusts, after the Statute of Uses, one is probably justified in assuming a sympathetic attitude toward this Equitable institution on the part of the Common Law Judges. Maitland, Equity, 29. But, however predisposed the Judges might be, they would have to satisfy themselves, perhaps others as well, that they were interpreting rather than nullifying the Statute. Only such uses could be saved as could be "distinguished." The case of the use raised upon a chattel interest is clear enough, as it was without the letter, and fairly without the mischief, of the Statute. …