ILNews

Judges rule in favor of bank on request to end trust

Back to TopCommentsE-mailPrintBookmark and Share

A beneficiary of a trust couldn’t prove to the Indiana Court of Appeals that the purpose of the trust, created by her mother, was to benefit any grandchildren and because there are no grandchildren, the trust should be terminated.

Sally Jean Kristoff established the Sally Jean Kristoff Trust in 1985 and amended the trust document in 1988. Upon her death in 2000, two separate trusts were created in the names of her daughters, Amy Kristoff and Laurie Ann Kristoff, with each trust funded with an amount equal to the then-existing generation skipping tax exemption.

Amy sought to terminate the Amy Jean Kristoff Trust in November 2010, arguing that the trust was created to benefit her and her sister’s children. Since neither sister had children, these circumstances weren’t forseen by Sally Jean Kristoff and the continuing existence of the trust is impractical and wasteful.

The trial court granted summary judgment in favor of Centier Bank and denied Amy’s request to terminate the trust.

After reading the terms of the trust set up by Kristoff’s mother, the judges rejected Kristoff’s claim that the purpose of the trust was to provide for grandchildren while avoiding consequences of the generation-skipping tax. Tax avoidance was a part of the trust’s purpose, but the main purpose was to provide for the health and welfare of the beneficiaries and his or her dependents, Judge Paul Mathias wrote.

Also, the trust document anticipates that all the assets in the trust may be distributed before the death of the beneficiary, leaving nothing for any children of the beneficiary. The trust doesn’t require that any assets be distributed to Sally Jean Kristoff’s grandchildren.

The judges held that the lack of children by Kristoff and her sister is not an unforeseen circumstance to support the termination of the trust.

“The terms of the trust document are clear and unambiguous, and the primary purpose of the trust was not for the benefit of the beneficiaries’ children. Nor was the beneficiaries’ failure to have children an unforeseen circumstance. Amy has identified no genuine issue of material fact, and the Bank has demonstrated that it is entitled to judgment as a matter of law,” the judge wrote in Amy Jean Kristoff v. Centier Bank, 45A03-1204-TR-186.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Just an aside, but regardless of the outcome, I 'm proud of Judge William Hughes. He was the original magistrate on the Home place issue. He ruled for Home Place, and was primaried by Brainard for it. Their tool Poindexter failed to unseat Hughes, who won support for his honesty and courage throughout the county, and he was reelected Judge of Hamilton County's Superior Court. You can still stand for something and survive. Thanks, Judge Hughes!

  2. CCHP's real accomplishment is the 2015 law signed by Gov Pence that basically outlaws any annexation that is forced where a 65% majority of landowners in the affected area disagree. Regardless of whether HP wins or loses, the citizens of Indiana will not have another fiasco like this. The law Gov Pence signed is a direct result of this malgovernance.

  3. I gave tempparry guardship to a friend of my granddaughter in 2012. I went to prison. I had custody. My daughter went to prison to. We are out. My daughter gave me custody but can get her back. She was not order to give me custody . but now we want granddaughter back from friend. She's 14 now. What rights do we have

  4. This sure is not what most who value good governance consider the Rule of Law to entail: "In a letter dated March 2, which Brizzi forwarded to IBJ, the commission dismissed the grievance “on grounds that there is not reasonable cause to believe that you are guilty of misconduct.”" Yet two month later reasonable cause does exist? (Or is the commission forging ahead, the need for reasonable belief be damned? -- A seeming violation of the Rules of Profession Ethics on the part of the commission) Could the rule of law theory cause one to believe that an explanation is in order? Could it be that Hoosier attorneys live under Imperial Law (which is also a t-word that rhymes with infamy) in which the Platonic guardians can do no wrong and never owe the plebeian class any explanation for their powerful actions. (Might makes it right?) Could this be a case of politics directing the commission, as celebrated IU Mauer Professor (the late) Patrick Baude warned was happening 20 years ago in his controversial (whisteblowing) ethics lecture on a quite similar topic: http://www.repository.law.indiana.edu/cgi/viewcontent.cgi?article=1498&context=ilj

  5. I have a case presently pending cert review before the SCOTUS that reveals just how Indiana regulates the bar. I have been denied licensure for life for holding the wrong views and questioning the grand inquisitors as to their duties as to state and federal constitutional due process. True story: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS Shorter, Amici brief serving to frame issue as misuse of govt licensure: https://www.scribd.com/doc/312841269/Thomas-More-Society-Amicus-Brown-v-Ind-Bd-of-Law-Examiners

ADVERTISEMENT