Matter of George Massad Trust

277 N.W.2d 269, 1979 N.D. LEXIS 201
CourtNorth Dakota Supreme Court
DecidedMarch 15, 1979
DocketCiv. 9544
StatusPublished
Cited by4 cases

This text of 277 N.W.2d 269 (Matter of George Massad Trust) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of George Massad Trust, 277 N.W.2d 269, 1979 N.D. LEXIS 201 (N.D. 1979).

Opinion

PAULSON, Justice.

This case involves two actions against the George Massad Trust which were consoli *271 dated and tried before the Stark County District Court. In one action Martha Saif and Cecelia Skeyie Massad, daughters of George and Anna Massad, objected to the final distribution of the George Massad Trust and claimed that they were entitled to certain shares of the assets of the Massad Trust. In the other action, Martha Saif, as Executrix for the Estate of Anna Massad, objected to the final distribution of the George Massad Trust and claimed that the Estate of Anna Massad was entitled to certain income from the Trust, one-half of the bank accounts of the Trust, and certain real property on which the Dickinson Hide & Fur Company is located. The district court denied the claims of Martha and Cecelia and denied the claims of the Estate of Anna Massad. The present appeal was brought to this court by Martha and Cecelia individually and by the Estate of Anna Massad.

An action involving certain claims against the Anna Massad Estate was also tried in the district court with the actions against the George Massad Trust. In that case, Mason Massad, James Massad, and Gemal Massad objected to certain payments made by the Anna Massad Estate. Following a hearing on the matter in county court, the Anna Massad Estate appealed the decision to the district court, and the appeal was consolidated for trial with the primary actions against the George Massad Trust. No appeal has been taken from the district court’s decision in the Anna Massad Estate case.

George Massad, the owner of the Dickinson Hide & Fur Company, executed his Last Will and Testament in 1962. One of the provisions in George’s will created the George Massad Trust [hereinafter Trust], the assets of which comprised most of his Estate. The Trust was created to provide for the care and support of Anna, George’s wife, during her lifetime and on her death was to be distributed to their children, Martha, Cecelia, James, Lester, Gemal, and Mason, in varying amounts.

Pursuant to the will, the Trust was to contain certain United States Government savings bonds, the Massad home, and the Dickinson Hide & Fur Company. On George’s death, the Trust was to be distributed according to Paragraph Seventh, sub-paragraphs 3(a), 3(b), and 3(c), as follows:

“[3] a. my United States Government Bonds:
1 — 30% to James Massad
2 — 20% to Lester Massad
3 — 20% to Gemal Massad
4 — 10% to Mason Massad
5— 5% to Martha Saif
6— 5% to Cecelia Detwiler 1
b. Lots 22, 23 and 24, of Block 9, original Plat of Town of Dickinson, Stark County, N. Dak. (our home) to Martha Saif and Cecelia Detwiler in equal shares, share and share alike;
c. all other property of the George Massad Trust
1 — 45% to Lester Massad plus the operating bank account of Dickinson Hide & Fur Co.
2 — 25% to James Massad
3 — 20% to Gemal Massad
4 — 10% to Mason Massad

George died on March 27, 1967, and his will was later admitted to probate. The members of the Massad family first learned of the contents of George’s will at a family conference with Robert B. Baird, George’s attorney, on the day after George’s funeral. All family members were present and received copies of the will.

Shortly thereafter, during an inventory of George’s assets, it was discovered that the savings bonds listed in Paragraph Seventh, subparagraph 3(a), of George’s will were owned in joint tenancy with Anna, and that the home listed in Paragraph Seventh, subparagraph 3(b), was owned solely by Anna. Anna, the surviving joint tenant, became sole owner of the bonds on George’s death. Therefore, the home and the bonds were not assets which George could dispose of by his will. Sabot v. Fox, 272 N.W.2d 280, 281 (N.D.1978); Cranston v. Winters, 238 N.W.2d 647, 651 (N.D.1976); In re Kas *272 pari’s Estate, 71 N.W.2d 558, 564 (N.D. 1955).

On May 25, 1967, an inventory of the assets of George’s Estate was filed in the County Court of Stark County and copies were given to all of the beneficiaries and interested persons, including Anna and the six Massad children. The inventory listed the bonds as being jointly owned and did not list the home which was owned by Anna.

Martha and Cecelia were to receive nothing under George’s will because the property given to them in Paragraph Seventh, subparagraphs 3(a) and 3(b), was not his to bequeath and devise. On July 17, 1968, Anna deeded the family home listed in Paragraph Seventh, subparagraph 3(b), to Martha and Cecelia while retaining a life estate in the home for herself.

After the estate tax returns on George’s estate were filed and the taxes were paid, the executors filed a Pinal Report and Accounting and a Petition for Distribution with the County Court of Stark County. Copies were sent to all interested persons and beneficiaries, including Martha and Cecelia, and they were notified that a hearing would be held in the matter. Martha and Cecelia were present at the hearing on the Final Report and Accounting in the George Massad Estate on September 17,

1969. No objection was made by either Martha or Cecelia and the Final Decree of Distribution in the George Massad Estate was executed on September 18, 1969.

The Final Decree of Distribution of the George Massad Estate activated the George Massad Trust. On September 24, 1969, James Massad was appointed Trustee of the Trust which was to be supervised by the Stark County District Court.

Following several months of negotiations, the Trust sold the Dickinson Hide & Fur Company to Lester Massad on May 28,1970. The real property on which the business was located was not sold. All members of the family received prior notice of the proposed sale of the business. The April 16, 1970, hearing regarding the sale was attended by most of the family members, including Anna, Martha, and Cecelia. Anna, Martha, and Cecelia were also present at the May 28, 1970, hearing when the sale to Lester was completed.

The Trust continued to exist after the sale of the Dickinson Hide & Fur Company to Lester. The proceeds from the sale of the business were added to the Trust assets, as were the monthly payments made by Lester for rental of the real property used by the Dickinson Hide & Fur Company.

Lester Massad died on September 17, 1970. He was survived by his wife, Evelyn, and his children, Lester Massad, Jr., June Ortloff, and Marlene Igard [also known as Marlene King].

As Trustee, James Massad was required to file annual reports and accounts with the district court.

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Bluebook (online)
277 N.W.2d 269, 1979 N.D. LEXIS 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-george-massad-trust-nd-1979.