Miller v. Walker

514 S.E.2d 22, 270 Ga. 811
CourtSupreme Court of Georgia
DecidedMarch 8, 1999
DocketS98A1664
StatusPublished
Cited by9 cases

This text of 514 S.E.2d 22 (Miller v. Walker) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Walker, 514 S.E.2d 22, 270 Ga. 811 (Ga. 1999).

Opinions

Hines, Justice.

This case involves the question of whether certain minor children remain beneficiaries of a trust created by their natural grandfather despite the children’s adoptions by unrelated persons. We affirm the lower court’s determination that the adopted children no longer hold interests in the trust.

In 1988, Beutell created a trust for the benefit of his daughter, N. J., and her descendants. Beutell died later that year, and the trust was funded with a $300,dOO bequest from his will. At the times of creation of the trust and Beutell’s death, N. J. was alive and had four living children: C. R., John Doe, Jane Doe I, and Jane Doe II.

Item Two of the trust instrument provides:

The Trustee will take, manage, use, invest, and re-invest such sums of money as may be turned over to the Trustee by Grantor or by his Executor for the education, maintenance, and support of the daughter of Grantor, [N. J.], and the descendants of [N. J.], the Trustee being empowered to use the Trustee’s absolute discretion as to the amounts of interest and principal to use or pay out for the said purposes. “Education” shall include college undergraduate as well as graduate education. “Maintenance and support” shall be limited to the accustomed style of living of the beneficiary unless the Trustee determines such to be inadequate. As to the named beneficiaries Grantor intends no priority and does not intend the Trustee to distribute income equally or [812]*812to conserve capital for unborn descendants.
Item Three states:
(a) This trust shall terminate at such time as when no then living child of [N. J.] is less than twenty-one (21) years of age. On such termination, what then remains in the Trust shall be paid out one-half (V2) to [N. J.], if living, and the other one-half (V2) shall be distributed to her descendants per stirpes. The encroachments for each beneficiary shall be added to the value of assets remaining with one-half to [N. J.] and the other one-half to [N. J.’s] descendants, per stirpes, deducting from the share of each encroachment made for that distributee.
(b) If [N. J.] dies before her youngest child is twenty-one (21) years of age, the Trust shall continue until such time as no then living child of [N. J.] is less than twenty-one (21) years of age, at which time the Trust shall terminate and all of the Trust assets shall be distributed per stirpes to the descendants of [N. J.].
(c) Should [N. J.] predecease the above event for distributions, and none of her children attain age twenty-one (21), the Trust shall terminate upon the last of [N. J.] and her children to die, and the Trust assets shall be distributed to [N. J.’s] descendants per stirpes, and if there are no such children or descendants surviving [N. J.], then the Trust assets shall be distributed equally to Grantor’s sisters, [two named sisters].
(d) If the Trustee is unable to locate [N. J.] after three years from the date of the death of Grantor,1 this Trust shall terminate and all of the assets in it shall be divided equally between Grantor’s sisters, [two named sisters], and if either is deceased, to her descendants per stirpes.
(e) Insofar as the Trustee is reasonably able to prevent it under no circumstances shall any principal or income go to [N. J.’s] husband (past or present).

Several years after the trust was created and funded, N. J.’s parental rights to three of her children were terminated; Jane Doe I and Jane Doe II were adopted in 1992, and John Doe was adopted in [813]*8131996. Each of the adoptions occurred in a foreign state. The fourth child, C. R., lives with his natural father and has not been adopted. As a result of the Doe adoptions, the trustee, NationsBank, N.A. (South), petitioned the superior court to declare the rights of the children and any future descendants of N. J. under the trust, and to clarify whether the “equalization” provisions of paragraph (a) of Item Three of the trust apply to distributions upon all events of termination.

After filing of the trustee’s petition, the superior court entered various orders to protect the confidentiality of the identities and locations of the adopted children. The court also appointed Miller as guardian ad litem for the adopted Doe children and Walker as guardian ad litem for C. R. and for N. J.’s unborn and unknown descendants. The parties entered into a stipulation of facts and the guardians filed cross-motions for summary judgment on the issue of the adopted children’s interests in the trust. Miller also moved to dismiss the question of the construction of the trust “equalization” provisions, arguing that the issue was not ripe for decision; Walker did not oppose dismissal of the issue.

The superior court granted Walker’s motion for summary judgment, citing OCGA § 19-8-19,2 the present law providing for the effect of a decree of adoption, finding that the Doe children ceased to [814]*814be N. J.’s descendants upon their adoptions and were no longer members of the class of beneficiaries of the trust. The court also dismissed consideration of the “equalization” issue, concluding it was not yet ripe for decision.3

Miller, as guardian for the Doe children, urges that the children’s present interests and remainder interests in the trust vested at the trust’s inception in 1988 before their adoptions occurred; that the children retained their interests after their adoptions because their interests were absolutely and indefeasibly fixed and determined; and that to interpret OCGA § 19-8-19 to divest such vested interests would result in an unconstitutional taking of property without due process of law in violation of the Fourteenth Amendment of the United States Constitution and Art. I, Sec. I, Pars. I and X of the 1983 Georgia Constitution. However, the arguments are unavailing.

The express provisions of OCGA § 19-8-19 make plain that the legislature intended that following adoption there be a complete substitution of families for the adopted individual. See Ivey v. Ivey, 264 Ga. 435, 437 (2) (445 SE2d 258) (1994). Consequently, in the case of adoption by unrelated persons, there is a termination of the adopted individual’s legal ties with his natural parents, not only for the purpose of intestate succession but also with regard to the passing of property by virtue of written instruments, including wills and trusts. Other jurisdictions have considered and upheld such a complete statutory severance on the question of the adopted person’s rights to property stemming from a class gift. See, e.g., In re Will of Martell, 457 S2d 1064 (Fla. App. 1984); Crumpton v. Mitchell, 281 SE2d 1 (N.C. 1981); In re Estate of Russell, 95 Cal. Rptr. 88 (Cal. App. 1971). As stated in Matter of Estate of Best, 485 NE2d 1010 (N.Y. 1985), “[p]owerful policy considerations militate against construing a class gift to include a child adopted out of the family. . . .

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Miller v. Walker
514 S.E.2d 22 (Supreme Court of Georgia, 1999)

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Bluebook (online)
514 S.E.2d 22, 270 Ga. 811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-walker-ga-1999.