Trusts

Henderson v. Collins, 245 Ga. 776 (1980)

In 1977, Collins took a judgment against Hunt for $300,000. Collins then sought to enforce the judgment against a Louisiana trust created in 1941; Henderson was the trustee and Hunt was a beneficiary. Both Hunt and Henderson took the position that the trust was not subject to the judgment. The trial court disagreed and ordered the sheriff to sell Hunt’s interest in the trust. The court found that Hunt’s interest was vested rather than contingent because there was no condition precedent to his receipt except termination of preceding estates; this was significant since a contingent interest cannot be attached. The court also found that the trust was not a discretionary trust since Hunt was entitled to a mandatory distribution of some portion of the trust when the trust is dissolved. The creditor could reach Hunt’s interest in the trust, but not the trust property.

See also Avera v. Avera, 253 Ga. 16 (1984) (Appellant, seeking alimony and support payments, argued that the legal and equitable interests merged and, therefore, the trust was subject to the claims of the settlor’s creditors. The court affirmed the trial court’s ruling that the trust interest had not merged because there was an additional beneficiary); Blanchard v. Gilmore, 208 Ga. 846 (1952) (Trust estate was vested in sole remainderman who was sui juris. Trust estate merged and, therefore, purported trust amendment was not effective); Robinson v. Lindsey, 184 Ga. 684 (1937) (If the trust be executed, the legal and equitable titles meet and merge, and there is no need of any equitable proceeding or special statutory remedy; it is only when executory that such proceedings are necessary).

Published by
David McGuffey

Recent Posts

2025 Spousal Impoverishment Standards

On November 15, 2024, the Centers for Medicare and Medicaid Services posted the 2025 spousal…

4 days ago

Social Security Disability versus Veteran’s Disability

The word disability doesn't have the same meaning in all contexts. If you have a…

2 weeks ago

Social Security Announces 2.5 Percent Benefit Increase for 2025

On October 10, 2024, the Social Security Administration announced that Americans will increase a 2.5…

1 month ago

Getting Organized

Many people think that estate planning is just having documents prepared. They have a lawyer…

1 month ago

Beneficiary who accepted inheritance under Will could not bring action for tortious interference

In Chambers v. Edwards, 365 Ga. App. 482 (2022), William Chambers sued his sister, Kathy…

2 months ago

Medicaid’s payment of medical bills does not bar recovery from negligent party

When an injured party sues someone who negligently injured him or her, one form of…

2 months ago