Wills Trusts & Estates keyed to Dukeminier
Introduction to Estate Planning
Intestacy: An Estate Plan by Default
Wills: Capacity and Contests
Wills: Formalities and Forms
Nonprobate Transfers and Planning for Incapacity
Construction of Wills
Restrictions on the Power of Disposition: Protection of the Spouse and Children
Trusts: Creation and Characteristics
Building Flexibility into Trusts: Powers of Appointment
Construction of Trusts: Future Interests
In re Estate of Gilbert
First National Bank of Bar Harbor v. Anthony 557 A.2d 957,1989 Me.
Clobberie 86 ER 476, Volume 86
Dewire v. Haveles 404 Mass. 274,534 N.E.2d 782,1989 Mass.
Estate of Woodworth 18 Cal. App. 4th 936,22 Cal. Rptr. 2d 676,1993 Cal. App.93 Cal. Daily Op. Service 6866
Lux v. Lux 109 R.I. 592,288 A.2d 701,1972 R.I.
trust Duration and the Rule Against Perpetuities
Charitable Trusts
Trust Administration: The Fiduciary Obligation
Wealth Transfer Taxation: Tax Planning
Wills, Trusts & Estates keyed to Dobris
Wills, Trusts & Estates > Wills Trusts & Estates keyed to Dukeminier > Construction of Trusts: Future Interests
Citation. In re Estate of Gilbert, 18 N.J. Misc. 540, 15 A.2d 111, 1940)
CitationIn re Estate of Gilbert, 18 N.J. Misc. 540, 15 A.2d 111, 1940 N.J. Misc. LEXIS 90 (Cty. Ct. Aug. 1, 1940)
Brief Fact Summary. Lester Gilbert renounced his interest in a discretionary trust because it conflicted with his religious beliefs.
Synopsis of Rule of Law. The law does not compel a man to accept an estate either beneficial or in trust against his will. When a man renounces his interest in a trust, the remainder interests in the trust will be accelerated.
There must be a voluntary change of residence; the residence at the place chosen for the domicile must be actual; to the factum of residence there must be added the animus manendi; and that place is the domicile of a person in which he has voluntarily fixed his habitation, not for a mere temporary or special purpose, but with a present intention of making it his home, unless or until something which is uncertain or unexpected shall happen to induce him to adopt some other permanent home.
Facts. Peter Gilbert created a discretionary trust in benefit of his children. Lester Gilbert, one of Gilbert's sons, was a beneficiary. Because of his religious beliefs, he chose to renounce his interest in the trust. The executor and the testator's minor grandchildren sought to have the renunciation declared invalid.
Whether the beneficiary of a discretionary trust makes an effective renunciation of that interest even though he has not received a distribution from the trust
Whether the remainder interests in a trust will be accelerated if a beneficiary renounces his interest in the trust
Yes. The beneficiary of a discretionary trust may validly renounce his interest even though the beneficiary has not received a distribution. The beneficiary has a sufficient property interest to make a valid renunciation. He has the right to compel the trustees to make a distribution under certain circumstances. In addition, though the beneficiary was motivated by religious beliefs when he chose to make the renunciation, the court will not inquire into the validity of those beliefs to determine his competency.
When a beneficiary renounces an interest in a trust, the remaindermen interests will be accelerated.
Discussion. An individual will not be compelled to accept his or her interest in a trust, even to preserve a grandchild's interest in the trust property.