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. My husband financed a car through Wells Fargo In dec 2007 and in Jan 2012 they took him to court to garnish his wages through a company called autovest llc . Do u think the statue of limitations apply from the day last payment was received or from what should have been the completion of the loan

  2. Andrew, you are a whistleblower against an ideologically corrupt system that is also an old boys network ... Including old gals .... You are a huge threat to them. Thieves, liars, miscreants they understand, identify with, coddle. But whistleblowers must go to the stake. Burn well my friend, burn brightly, tyger.

  3. VSB dismissed the reciprocal discipline based on what Indiana did to me. Here we have an attorney actually breaking ethical rules, dishonest behavior, and only getting a reprimand. I advocated that this supreme court stop discriminating against me and others based on disability, and I am SUSPENDED 180 days. Time to take out the checkbook and stop the arrogant cheating to hurt me and retaliate against my good faith efforts to stop the discrimination of this Court. www.andrewstraw.org www.andrewstraw.net

  4. http://www.andrewstraw.org http://www.andrewstraw.net If another state believes by "Clear and convincing evidence" standard that Indiana's discipline was not valid and dismissed it, it is time for Curtis Hill to advise his clients to get out the checkbook. Discrimination time is over.

  5. Congrats Andrew, your street cred just shot up. As for me ... I am now an administrative law judge in Kansas, commissioned by the Governor to enforce due process rights against overreaching government agents. That after being banished for life from the Indiana bar for attempting to do the same as a mere whistleblowing bar applicant. The myth of one lowly peasant with the constitution does not play well in the Hoosier state. As for what our experiences have in common, I have good reason to believe that the same ADA Coordinator who took you out was working my file since 2007, when the former chief justice hired the same, likely to "take out the politically incorrect trash" like me. My own dealings with that powerful bureaucrat and some rather astounding actions .. actions that would make most state courts blush ... actions blessed in full by the Ind.S.Ct ... here: https://www.scribd.com/doc/299040839/2016Petitionforcert-to-SCOTUS

ADVERTISEMENT