In Re the Trust Established Under Trust Agreement of Boright

359 N.W.2d 647
CourtCourt of Appeals of Minnesota
DecidedMarch 7, 1985
DocketCO-84-993
StatusPublished
Cited by4 cases

This text of 359 N.W.2d 647 (In Re the Trust Established Under Trust Agreement of Boright) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Trust Established Under Trust Agreement of Boright, 359 N.W.2d 647 (Mich. Ct. App. 1985).

Opinions

OPINION

POPOVICH, Chief Judge

Appellant Gutierrez, an income beneficiary, appealed the trial court’s order granting respondent’s motion to purchase an annuity and terminate the trust. We reverse.

FACTS

Thomas A. Boright entered into a revocable inter vivos trust agreement with the First National Bank of Minneapolis on July 27, 1977. He executed an amendment on March 31, 1979, which provided:

C. The remaining assets, after the foregoing payments, shall then constitute a single trust which shall be administered by the trustee as follows:
1. Beginning as of the date of the donor’s death the trustee shall pay to the donor’s son, THOMAS A. BO-RIGHT, JR., the sum of Twenty-Five Thousand ($25,000.) Dollars per year, from the net income of the trust estate or from the principal thereof to the extent that the net income is insufficient, in monthly installments during his lifetime.
2. Beginning as of the date of the donor’s death the trustee shall pay to the donor’s nurse and housekeeper, ANA R. GUTIERREZ, the sum of Twelve Thousand ($12,000.) Dollars per year, from the net income of the trust estate or from the principal thereof to the extent that the net income is insufficient, in monthly installments during her lifetime.
3. Any net income of the trust estate not paid out in any calendar year as above provided shall be accumulated by the trustee and added to the principal thereof.
4. Upon the death of any one of the above named beneficiaries his or her interest in said trust shall terminate and said sum which would otherwise have been paid to such deceased beneficiary shall be accumulated by the trustee and added to the principal thereof. Upon the death of the last survivor of the above named beneficiaries, said trust shall terminate and the entire remaining balance of said trust estate, including both principal and any remaining undistributed net income, shall be distributed outright as follows:
Twenty-five (25%) percent thereof to JOHN P. MATTOX III, if then living. If JOHN P. MATTOX III is not then living, the trustee shall distribute his share to the duly appointed personal representative of his estate. Twenty-five (25%) percent thereof to MICHAEL T. MATTOX, if then living. If MICHAEL T. MATTOX is not then living, the trustee shall distribute his share to the duly appointed personal representative of his estate.
[649]*649Twenty-five (25%) percent thereof in equal shares to ANNETTE DON-LEVY, ALICE CHESTER, NANCY BRISBOIS, GLENNA CAPEL and PATRICIA FIORITO, if then living. If any of the five above named beneficiaries are not then living, the bequest to that person shall lapse and her share shall be added to the remaining balance of said trust estate. Twenty-five (25%) percent thereof in equal shares to MINNESOTA MASONIC HOME, INCORPORATED; UNITED WAY OF MINNEAPOLIS; AMERICAN RED CROSS-MINNEAPOLIS AREA CHAPTER; BOY’S CLUBS OF MINNEAPOLIS; AMERICAN CANCER SOCIETY; MINNESOTA DIVISION, INC.; and AMERICAN HEART ASSOCIATION, MINNESOTA AFFILIATE, INCORPORATED. If any named organization is not in existence at the time of distribution, that organization’s share shall lapse and be divided equally among the remaining existing organizations.

Boright died on August 20, 1979, the trust became irrevocable, and the First National Bank of Minneapolis was confirmed as trustee by an order dated September 14, 1979.

After the donor’s death, his son, Thomas A. Boright, Jr., contested the validity of the trust agreement in Hennepin County probate court. The trustee then commenced an action in the Hennepin County District Court for a declaratory judgment that the trust was a valid and subsisting agreement. Boright, Jr. counterclaimed. These proceedings were settled by a compromise agreement executed and consented to by all persons interested in the trust, including the appellant. The district court approved a compromise agreement which provided:

C. Subject to the foregoing, the remaining trust estate shall be disposed of as a single trust as follows:
1.The trustee shall pay to the donor’s nurse and housekeeper, Ana R. Gutierrez, the sum of Twelve Thousand Dollars ($12,000) per year in monthly installments commencing as of the donor’s date of death and continuing for and during her life. Said amount shall be paid from the net income of the trust estate and to the extent the net income is insufficient, then from principal.
2. The trustee shall pay to the donor’s son, Thomas A. Boright, Jr., effective as of August 1, 1980, the greater of:
(a) Eighty Percent (80%) of the net income of the trust estate remaining after payment of the amount due Ana R. Gutierrez under the preceding paragraph or,
(b) Thirty Thousand Dollars ($30,-000) per year, in monthly installments, continuing for and during his life. In the event donor’s son is payable Thirty Thousand Dollars ($30,000) per year and the net income is insufficient to pay said amount, the insufficiency shall be paid out of principal.
3. Any remaining net income of the trust estate in any year which is not paid out pursuant to the preceding provisions shall be distributed to the remainder beneficiaries named in Section D of this Article III in proportion to their interests as set forth in said Section D of this Article III, in convenient installments but no less often than annually. Said interests in the remainder shall be determined as of the last date of the year for which the net income is calculated.
D. Upon the death of the survivor of THOMAS A. BORIGHT, JR. and ANA R. GUTIERREZ, the remaining trust estate shall be distributed as follows: Twenty-five percent (25%) thereof to JOHN P. MATTOX, III or to the personal representatives of his estate, in their representative capacity and not for their own use or benefit. Twenty-five percent (25%) thereof to MICHAEL T. MATTOX or to the personal representatives of his estate, in their representative capacity and not for their own use or benefit.
[650]*650Twenty-five percent (25%) thereof in equal shares to ANNETTE DON-LEVY, ALICE CHESTER, NANCY BRISEBOIS, GLENNA CAPEL and PATRICIA FIORITO, if then living. If any of the five above named beneficiaries are not then living, the bequest to that person shall lapse and her share shall be added to the remaining balance of said trust estate. Twenty-five percent (25%) thereof in equal shares to Minnesota Masonic Home, Incorporated; United Way of Minneapolis; American Red Cross-Minneapolis Area Chapter; Boy’s Clubs of Minneapolis; American Cancer Society, Minnesota Division, Inc.; and American Heart Association, Minnesota Affiliate, Incorporated. If any named organization is not then in existence at the time of distribution, that organization’s share shall lapse and be divided equally among the remaining existing organizations.

Boright, Jr. died accidentally on July 13, 1982 at the age of 62. Appellant Gutierrez is 63 years of age. Glenna Capel has died, but the other individual remaindermen are living and their ages range from 45 to 70 years. All the named charitable organizations still exist. The corpus of the trust now consists of approximately $900,000.

Michael T.

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Gopher Oil Co., Inc. v. Union Oil Co. of California
757 F. Supp. 998 (D. Minnesota, 1991)
In Re Estate of Schroeder
441 N.W.2d 527 (Court of Appeals of Minnesota, 1989)
In re the Trust Established Under Trust Agreement of Boright
395 N.W.2d 726 (Court of Appeals of Minnesota, 1986)
In Re the Trust Established Under Trust Agreement of Boright
377 N.W.2d 9 (Supreme Court of Minnesota, 1985)

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Bluebook (online)
359 N.W.2d 647, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-trust-established-under-trust-agreement-of-boright-minnctapp-1985.