Trust

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TRUST TRUSTEE has legal ownership of property and, if necessary to fill out purposes of trust, the legal fee simple in property. Net income of trust paid to beneficiaries and upon its termination, trust assets handed over to remaindermen. Swanson v. Swanson 1999: “remaining assets of trust shall be divided into nine shares, one for each of SURVIVING children or for THEN SURVIVING issue of deceased child.” Rule: First surviving is ambiguous adjective which is construed to refer to testator; second surviving interpreted as more clearly pointing to end of life estate. If remainderman does not meet all divesting conditions in conveyance, then his interest can be transferred to heirs. RULE: Vested remainders are preferred; courts will construe conditions to be subsequent and remainders to be vested in all cases of doubt. RULE: Ambiguous words of survivorship are to be construed to refer to death of testator or earliest point possible and not as condition precedent in order to vest remainders.

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