In re: Trust for the Benefit of Samuel Frances duPontAnnotate this Case
The trustees sought instructions as to the proper distribution of the principal and income of the trust, which granted the donee a limited testamentary power of appointment. The issue is whether a divorce decree incorporating a settlement agreement in which the donee agreed to exercise his power of appointment to benefit the children of his first marriage, bound the donee and the trust, or whether the donee’s last will and testament, which subsequently exercised the donee’s power of appointment to benefit his granddaughter from his second marriage, controls. The master found that the settlement agreement incorporated in a Nevada divorce decree did not bind the trust, nor did it represent a partial release of the donee’s power of appointment. Imposing a constructive trust over the trust property is not appropriate in these circumstances, the master concluded, and recommended that the court grant the granddaughter’s motion for summary judgment and order the trustee to distribute the trust principal and income consistent with the exercise of the donee’s power of appointment in his last will and testament.