Monday, November 11, 2013

Irwin Union Bank & Trust Co. v. Long case brief

Irwin Union Bank & Trust Co. v. Long case brief summary
312 N.E.2d 908 (1974)


CASE SYNOPSIS
Appellant bank sought review of the order from the Bartholomew Circuit Court ( Indiana), which levied a writ of execution upon a trust in satisfaction of a judgment obtained by appellee ex-wife emanated from a divorce decree. The court denied the bank's motion to set aside the writ.

CASE FACTS

In an underlying divorce decree, the ex-wife obtained a judgment against her ex-husband and sought satisfaction of that judgment by pursuing funds allegedly owed to the ex-husband as a result of a trust set up by his mother. The trial court levied a writ of execution upon the trust and the bank appealed the order denying his motion to set aside the writ.

DISCUSSION

  • On appeal, the court held that an examination of the pertinent parts of the trust created by the ex-husband's mother indicated that the power which was given to the ex-husband fell under the definition of power of appointment. 
  • The court held that the ex-husband might have exercised the power which was delegated to him to distribute property not his own, but that he had no control over the trust corpus until he exercised his power of appointment and gave notice to the trustee that he wished to receive his share of the trust corpus. 
  • The court held that until such exercise was made, the trustee had the absolute control and benefit of the trust corpus within the terms of the trust instrument, and the ex-wife was in no position to either force the exercise of the power or to reach the corpus. 
  • The court reversed and remanded the order.

CONCLUSION
The court reversed and remanded the order from the trial court that levied a writ of execution upon a trust in satisfaction of a judgment obtained by the ex-wife. The court held that the ex-husband had no control over the trust corpus until he exercised his power of appointment and gave notice to the trustee that he wished to receive his share of the trust corpus.

Suggested Study Aids For Wills, Trusts & Estate Law

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