Monday, November 11, 2013

First National Bank of Bar Harbor v. Anthony case brief

First National Bank of Bar Harbor v. Anthony case brief summary
557 A.2d 957 (1989)


CASE SYNOPSIS
Appellant grandchildren of a settlor sought review of a summary judgment of the Superior Court, Hancock County (Maine) which denied their claim to a remainder interest in an inter vivos trust created by their grandfather.

PROCEDURAL HISTORY

The lower court determined that a gift to the settlor's son of the remainder interest of the trust lapsed as a result of the son's death prior to the death of the settlor.

DISCUSSION


  • However, the court on appeal determined that the remainder interest of the son was a present, vested interest at the time of the creation of the inter vivos trust. 
  • Accordingly, the lower court erred in determining that the grandchildren had no right to the remainder interest. 
  • The settlor's failure to change the plan, coupled with the omission of a survival requirement in the case of the children's shares, suggested a disposition to a predeceased child's estate rather than a reversion to the settlor's estate. 
  • Accordingly, the children's interests were vested, subject to defeasance or divestment if the settlor chose to amend or revoke the trust or change his beneficiaries. 
  • Because the remainder interest of the settlor's son was a present, vested interest at the time of the creation of the inter vivos trust, the lower court erred in determining that the grandchildren were not entitled to the remainder interest.

CONCLUSION
The court vacated the summary judgment that denied the grandchildren's claim to a remainder interest in an inter vivos trust created by their grandfather. The case was remanded for determination of an appropriate instruction to the trustee in accordance with the opinion. Costs were to be taxed against the estate.

Suggested Study Aids For Wills, Trusts & Estate Law

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