BEALS V. STATE STREET BANK AND TRUST CO. 367 Mass. 318, 326 N.E.2d 896 (1975) CASE BRIEF

BEALS V. STATE STREET BANK AND TRUST CO.

367 Mass. 318, 326 N.E.2d 896 (1975)

NATURE OF THE CASE: This was an action to determine distribution of a portion of a trust. Bank (P) sought a determination of the proper distribution to be made of a portion of a trust created under a residuary clause of a will establishing the trust. The court transferred the case.

FACTS: Settlor left all his property in a trust, with his wife as the income beneficiary for her life. At her death, the trust was divided among settlor's three surviving daughters. Settlor's will provided that each portion of the trust set aside for a daughter pay the income of that portion to her for life, and gave each daughter a testamentary power of appointment. One of the daughters, Isabella, did not expressly exercise her power of appointment in her will, although she had previously executed an instrument which limited the exercise of her power to descendants of settlor. In her will, Isabella left the residue of her estate to the issue of her sister, Margaret (D). If the will is construed such that, by naming Margaret's issue as residual takers, Isabella exercised her power of appointment in their favor, then they would take Isabella's share of the trust. If it is found that Isabella did not exercise her power, Margaret's issue would take one-half of Isabella's share of the trust, and the issue of her other sister, Jane, would take the other half. The trustees (P) have petitioned the court for instructions as to how Isabella's share of the trust should be distributed.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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