This section contains the nature of the case and procedural background.

Settlor executed an inter vivos trust, retaining power to amend or revoke the trust, and to control the trust property. He conveyed stock of corporations he controlled into the trust and executed a will leaving the residue of his estate to the trust. Settlor later applied to a bank (P) for a working capital loan. He told the bank officer that he owned a controlling interest in several corporations, but did not mention the trust. The bank granted settlor an unsecured loan. Shortly thereafter, settlor died. The assets in his estate were insufficient to pay back the loan. The trust instrument authorized the trustees, at their discretion, to pay any expenses related to settlor's estate with trust assets. P sued to reach the trust assets.

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