In Re Trust Of Wold

708 A.2d 787 (1998)

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Nature of the Case

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Facts

Seward created a trust in 1944 to the benefit of his daughter Elaine Wold. The trust was initially funded by substantial shares of Johnson and Johnson and have over the years multiplied in value. The trust was designed for support and income to the beneficiary and such of heirs as she may elect. The trustees were directed to collect, and receive the income and profits from the trust property and after deducting expenses which were payable out of the income to accumulate the net income and add it to the trust property. Once Elaine obtained the age of 21, the trustees were authorized to pay to her so much of the net income in their absolute and uncontrolled discretion deemed to be for her best interest. The trust also permits the trustees to transfer and to pay over to the life beneficiary any or all of the trust property. The trust directed that on the death of Elaine, for the trustees to divide, transfer and pay over absolutely, outright and forever, the trust property to her surviving spouse and issue if any as directed by her will or if not by testamentary direction, to her issue in equal shares per stirpes. Elaine now wants to create another new trust from her discretionary powers in the trust for the benefit of her granddaughters and whether such a disposition would violate the statutory rule of perpetuities