HomeMy WebLinkAbout1240 Can there be a part~al teYmir.ation of the trust as to these
three beneficiaries? There appears to be no Florida case directly on
this point. There is a division of authority in the United States.
However, in a number of cases, Courts have allawec~ the partial termi-
nation of a trust, although one or more of the other beneficiaries do
not consent to such termination, on the ground that the interest of
the noncansenting beneficiaries were not prejudiced thereby. Scott
on Trust, vol. III, Section 340.2 The Court believes this to be the
better rule and will apply it in this case.
The original assets of the trust consisted of shares of
stock in various closely held corporations, a fractional i~terest in
a mortgage and a relatively small amount o£_cash. The Trustee alleges
that since the trust was created, Binney Properties, Inc. (one of the _
corporations whose stock is owned by the trust) is in liquidation,
the result of which will be for said corporation to distribute to
Trustee and exchange its assets for its issued and outstanding capital
stock.
The original Donors in the Trust Declaration stated that their
I
purpose in creating the Trust was for "...protecting and conserving
~ d to rovide for an orderly disposition,
the aforesaid properties an p
liquidation, or distribution thereof if and when such is deemed proper."
If it is possible for the Trustee, witnout violating the purpose of
the Trust and without prejudicing the interest of any other beneficiar ies,
to make a partial distribution of principal, such a distribution could
be made to the Estate of Elizabeth Peters Binney, Happy Kitchel Egler
and Edwin Binney 3rd. Such a principal distribution coul~ be made from
.
time to time to one or more of the three hene~iciaries referred to
above. The Trustee would have to reta~.n the proper proportionate
share of the principal assets for the remaining beneficiaries or classes
of beneficiaries, making allowances for a proportianate reduction of
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