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10th Circuit Holds Trust Failed For No Trust Appointed Successor.
Posted by: Melville Johnson, P.C.
May 19, 2008

In Butt v. Bank of America, 477 F.3d 1171 (C.A. 10, Feb. 22, 2007), the court determined that the trust failed upon death of original trustee as no designation of successor in trust was appointed. The Plaintiff, beneficiary of a trust, brought a lawsuit against the Defendant alleging that the Defendant breached its fiduciary duty as the successor trustee. The district court found in favor of the Defendant. The Plaintiff appealed the decision.

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Trust Deemed Part of Estate for Bankruptcy Proceedings.
Posted by: Melville Johnson, P.C.
May 13, 2008

Mr. Gerald Taylor handwrote his will, in which he bequeathed all of his assets to his daughter, Ms. Sarah Ann Delmoe. He later added a codicil which bequeathed his assets to his sister to hold in trust for Ms. Delmoe and required the trust to pay his daughter a $600 monthly distribution. After Mr. Taylor's death, Ms. Delmoe began receiving monthly payments from the trust. She then filed for bankruptcy along with her husband. The bankruptcy sought to have Ms. Delmoe's interest in the trust declared as an asset of the bankruptcy estate, and for postpetition payments to be turned over to him.

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