Estate of Cristofani v. Commissioner
Brief

View this case and other resources at: Citation. 97 T.C. 74,1991 U.S. Tax Ct.97 T.C. No. 5 Brief Fact Summary. The decedent, Maria Cristofani claimed estate tax exclusions of $10,000 for seven years based on a transfer to an irrevocable trust in favor of her children and grandchildren. The Internal Revenue Service invalidated the exclusions that made the gifts in regard to the interest of her grandchildren on grounds that the exclusions were not based on present transfers of property. Synopsis of Rule of Law. Whether a gift is a present interest under Section 2503(b) of the G ...

Estate of Maxwell v. Commissioner
Brief

View this case and other resources at: Citation. 3 F.3d 591,1993 U.S. App.93-2 U.S. Tax Cas. (CCH) P60,145 Brief Fact Summary. The decedent, Lydia G. Maxwell transferred her property to her son and daughter-in-law, the Maxwells. The decedent continued to reside in the property until her death. The Maxwells transferred a mortgage note in the amount of $250,000 to the decedent. The decedent paid rent payments to the Maxwells in the amount of the interest on the property and forgave their mortgage debt in full upon her death. Synopsis of Rule of Law. Under I.R.C. Section 2036, ...

National Academy of Sciences v. Cambridge Trust Co
Brief

View this case and other resources at: Citation. 370 Mass. 303,346 N.E.2d 879,1976 Mass. Brief Fact Summary. Florence R. Troland was the beneficiary of a trust created by her husband. Under the trust, If Troland remarried, she was to stop receiving payments. When Troland remarried, she continued to receive payments and did not notify the trustee that she had remarried. Synopsis of Rule of Law. If a person makes a representation of a fact, as of his own knowledge, in relation to a subject matter susceptible of knowledge, and such representation is not true; if the party to wh ...

Holtz
Brief

View this case and other resources at: Citation. 38 T.C. 37,1962 U.S. Tax Ct. Brief Fact Summary. Leon Holtz created a revocable trust that paid income to him for life as much as the principal trustee believed was necessary for his welfare, comfort, and support, or for his hospitalization or other emergency needs. Upon his death, the income was to be paid to his wife in the amount that the principal trustee believed was necessary for her welfare, comfort and support, or for her hospitalization or other emergency needs. The court determines whether the trust is subject to a gi ...

Dennis v. Rhode Island Hospital Trust Co F.2d 893
Brief

View this case and other resources at: Citation. 744 F.2d 893,1984 U.S. App. Brief Fact Summary. The plaintiffs, the great-grandchildren of Alice Sullivan, are the beneficiaries of a trust created under a will. The plaintiffs allege that the Bank trustee breached various fiduciary obligations under the trust. Synopsis of Rule of Law. A trustee is under a duty to the beneficiary who is ultimately entitled to the principal not to retain property which is certain or likely to depreciate in value, although the property yields a large income, unless he makes adequate provision for ...

Fletcher v. Fletcher
Brief

View this case and other resources at: Citation. 253 Va. 30,480 S.E.2d 488,1997 Va. Brief Fact Summary. Elinor J. Fletcher created several trusts for the benefit of her children. The trustees refused to let the children see all of the portions of the trust. The trustee claimed that the grantor orally instructed them to keep the terms and the dealings of the trust confidential. Synopsis of Rule of Law. The terms of a trust may regulate the amount of information which the trustee must give and the frequency with which it must be given, but the beneficiary is always entitled to ...

Estate of Collins
Brief

View this case and other resources at: Citation. 72 Cal. App. 3d 663,139 Cal. Rptr. 644,1977 Cal. App. Brief Fact Summary. The defendants, Carl Lamb and C.E. Millikan, were the trustees over a testamentary trust which authorized the trustees to purchase every kind of property, real, personal or mixed, and every kind of investment." The defendants lost about $60,000 of the trust fund that was initially $80,000. Synopsis of Rule of Law. In dealing with trust property, trustees must exercise the judgment and care, under the circumstances then prevailing, which men of prudence, discre ...

In re Estate of Janes
Brief

View this case and other resources at: Citation. 90 N.Y.2d 41,681 N.E.2d 332,659 N.Y.S.2d 165,1997 N.Y. Brief Fact Summary. Rodney B. Janes created a testamentary trust consisting of Kodak stock. He named wife, Cynthia Janes, and several charitable organizations as the beneficiaries under the trust. The trustees, the petitioner, Ellison Patterson and Richard Young, failed to divest the estate of the stock that had dropped in value. Synopsis of Rule of Law. A trustee must diversity assets unless the trustee reasonably determines that it is in the interests of the beneficiarie ...

Shriners Hospitals for Crippled Children v. Gardiner
Brief

View this case and other resources at: Citation. 152 Ariz. 527,733 P.2d 1110,1987 Ariz. Brief Fact Summary. Laurabel Gardiner created a trust and appointed Mary Jane as trustee, Charles first alternate trustee, and Robert second alternate trustee. Jane did not have investment experience and left all the investment decisions to Charles. Charles, who was an investment counselor and stockbroker, embezzled $317,000 from the trust. Synopsis of Rule of Law. A trustee is not permitted to delegate his responsibilities to a co-trustee. A trustee lacking investment experience must s ...

In re Gleeson
Brief

View this case and other resources at: Citation.5 Ill. App. 2d 61,124 N.E.2d 624,1955 Ill. App. Brief Fact Summary. Mary Gleeson leased farm land to the petitioner, Con Colbrook. Two weeks before the lease expired, Gleeson died. She devised the farm land to The petitioner as trustee for her children. However, the petitioner remained on the property for another year. Synopsis of Rule of Law. A trustee may not deal in his individual capacity with the trust property. ...

In re Rothko
Brief

View this case and other resources at: Citation. 43 N.Y.2d 305,372 N.E.2d 291,401 N.Y.S.2d 449,1977 N.Y. Brief Fact Summary. Mark Rothko left numerous paintings in his will to his children. Bernard J. Reis, Theodoros Stamos, and Morton Levine were the executors of his estate. Rothko's children filed suit claiming that the executors entered into improper business transactions to sell the paintings. Synopsis of Rule of Law. Trustees have a duty of loyalty that prevents them from accepting employment from a third party who is entering into a business transaction with the trust. ...

Smithers v. St. Luke
Brief

View this case and other resources at: Citation. 281 A.D.2d 127,723 N.Y.S.2d 426,2001 N.Y. App. Div. Brief Fact Summary. R. Brinkley Smithers and the plaintiff, Adele Smithers made a gift to the defendant, St. Luke's Roosevelt Hospital Center of $10 million over time for the establishment of an alcoholism treatment center (the "Gift"). The trustees of the center misappropriated the funds. After Smither's death, the plaintiff brought suit to enforce the agreement between that was made between herself and Smithers, and the St. Luke's Roosevelt Hospital Center. Synopsis of Rule ...

Hartman v. Hartle
Brief

View this case and other resources at: Citation. 95 N.J. Eq. 123,122 A. 615,1923 N.J. Ch.10 B Stockton 123 Brief Fact Summary. Dorothea Glick created a will leaving her property to her five children. The complainant, one of her children, sued the trustee and the executor for selling the property to the executor's wife and keeping the profits off of the subsequent. sale of the property to an innocent purchaser. Synopsis of Rule of Law. A trustee nor his wife may purchase property from himself at his own sale unless leave to do so has been previously obtained under an order of ...

In re Neher
Brief

View this case and other resources at: Citation. 279 N.Y. 370,18 N.E.2d 625,1939 N.Y. Brief Fact Summary. Neher devised her property to the Village of Red Hook, in memorial of her husband, to be used as a hospital known as, "Neher Memorial Hospital." Synopsis of Rule of Law. When compliance with a grafted direction of a charitable purpose is impracticable, the court may execute the gift cy pres through a scheme framed by the court for carrying out the trust's general charitable purpose. ...

Carl J. Herzog Foundation, Inc. v. University of Bridgeport
Brief

View this case and other resources at: Citation. 243 Conn. 1,699 A.2d 995,1997 Conn. Brief Fact Summary. The Carl J. Herzog Foundation made a gift to the University of Bridgeport to provide scholarships to nursing students. Later the University closed its school and applied the money from the gift to its general endowment. Synopsis of Rule of Law. A suit can be maintained for the enforcement of a charitable trust by the Attorney General or other public officer, or by a co-trustee, or by a person who has a special interest in the enforcement of the charitable trust, but not by ...

In re Trust of Wold
Brief

View this case and other resources at: Citation. 310 N.J. Super. 382,708 A.2d 787,1998 N.J. Super. Brief Fact Summary. Elaine Johnson Wold intends to exercise her power of appointment that was granted to her by her father J. Seward Johnson. Wold petitions the court to determine whether the exercise of this power will be covered under the New Jersey Uniform Statutory Rule Against Perpetuities because the rule, which creates greater flexibility concerning the time period in which interests must vest, does not apply retroactively. Synopsis of Rule of Law. Under the New Jersey Un ...

Shenandoah Valley National Bank v. Taylor
Brief

View this case and other resources at: Citation. 192 Va. 135,63 S.E.2d 786,1951 Va.25 A.L.R.2d 1104 Brief Fact Summary. Charles B. Henry created a trust for the children of an elementary school. Each child was to receive an equal share of the income of the trust every year on the last day of school before Easter and the day before Christmas. Synopsis of Rule of Law. To be sustained as a charitable trust, the dominant intent must be charitable and not merely benevolent. The dominant intent is not assessed by a specific intent declared by the trust but by the effect of the t ...

American Security & Trust Co. v. Cramer (1959)
Brief

View this case and other resources at: Citation. 175 F. Supp. 367,1959 U.S. Dist. Brief Fact Summary. Abraham Hazen created a trust in favor of his great-grandchildren. Their interests vested when their parent died who was a child of Hazen. Some of Hazen's grandchildren were not born until after Hazen died. Synopsis of Rule of Law. A subclass exists where the ultimate takers are not described as a single class but rather as a group of subclasses. Under the rule against perpetuities, an interest must vest within a period measured by a life or lives in being at the testator's ...

Second National Bank of New Haven v. Harris Trust & Savings Bank
Brief

View this case and other resources at: Citation. 29 Conn. Supp. 275,1971 Conn. Super.283 A.2d 226, Brief Fact Summary. Margaret left a will purporting to exercise a power given to her through a trust crated by her mother, Caroline Trowbridge. Margaret made several provisions and the court determines whether each violates the Rule Against Perpetuities. Synopsis of Rule of Law. Under the Rule Against Perpetuities, a future interest which might not vest within twenty-one years after the life of some person in being at the date that an interest in a power of appointment was estab ...

Dickerson v. Union National Bank of Little Rock
Brief

View this case and other resources at: Citation. 268 Ark. 292,595 S.W.2d 677,1980 Ark. Brief Fact Summary. Nina Martin Dickerson created a testamentary trust that was to terminate on the death of her son's widow. However, Dickerson did not specify the identity of the widow. Synopsis of Rule of Law. Under the rule against perpetuities, an interest must vest within a period measured by a life or lives in being at the testator's death, plus 21 years. If there is any possibility that the contingent event may happen beyond the limits of the rule, the transaction is void. ...

Estate of Woodworth
Brief

View this case and other resources at: Citation. 18 Cal. App. 4th 936,22 Cal. Rptr. 2d 676,1993 Cal. App.93 Cal. Daily Op. Service 6866 Brief Fact Summary. Harold Evans Woodworth created a testamentary trust that terminated on the death of Mamie Barlow Woodworth. Upon her Mamie Barlow Woodworth's death, the estate was to be distributed to Ray B. Plass, if she survived, and if not to her heirs at law. The court determines whether the heirs at law should be determined at Mamie Barlow Woodworth 's death or Plass's death. Synopsis of Rule of Law. When a gift has been made to the ...

Lux v. Lux
Brief

View this case and other resources at: Citation. 109 R.I. 592,288 A.2d 701,1972 R.I. Brief Fact Summary. Philomena Lux created a testamentary trust for the benefit of her grandchildren. The real estate in the trust could not be sold until the youngest of the said grandchildren reached the age of twenty-one years of age. Synopsis of Rule of Law. A court will permit a class size to increase until the time for distribution. If a will shows no intention on the part of the testator that income be accumulated, income is payable to the beneficiaries as it accrues. ...

Clobberie
Brief

View this case and other resources at: Citation. 86 ER 476, Volume 86 Brief Fact Summary. None Provided Synopsis of Rule of Law. None Provided ...

Dewire v. Haveles
Brief

View this case and other resources at: Citation. 404 Mass. 274,534 N.E.2d 782,1989 Mass. Brief Fact Summary. Jennifer was the daughter of Thomas III , a beneficiary under a trust. The income of the trust was payable to Thomas III and his siblings. The court determines whether the income should be split between the grandchildren as a class with a right of survivorship or whether it should Jennifer as a great grandchild who may take Thomas III's share under a right of representation. Synopsis of Rule of Law. In the absence of a contrary intent expressed in the will or a contro ...

First National Bank of Bar Harbor v. Anthony
Brief

View this case and other resources at: Citation. 557 A.2d 957,1989 Me. Brief Fact Summary. Franklin Anthony created a revocable intervivos trust payable to his three children, after he and his wife died. One of his children, John, did not survive Anthony. A lower court ruled that John's interest did not vest until his father died and therefore lapsed when John failed to survive his father. Synopsis of Rule of Law. The remainder man of a revocable intervivos trust has a present, vested interest at the time of the creation of the trust ...