The estate trustees sought the opinion, advice, or direction of the court regarding the application of the rule in Saunders v. Vautier to a testamentary trust created for a beneficiary under a limited property will.
The court addressed whether the trust known as the “Susan Fund” could be terminated with immediate distribution depending on whether the beneficiary exercised a power of appointment by deed or will.
The court held that the rule in Saunders v. Vautier would not apply where no appointment was made, but would apply if the beneficiary appointed another beneficiary or her estate by deed.
The reasons clarified the implications of an earlier decision concerning a related trust and confirmed when the beneficiary could compel termination of the trust.
