In re Trust Created by Hansen
Annotate this CaseRuth Mansfield, the beneficiary of an inter vivos trust, died in 2005 after more than a decade of battling diffuse cerebrovascular disease. After Ruth's death, her estate sought payment of her last-illness expenses from the trust. The trustee declined. The county court concluded the trustee had properly denied payment of the medical bills because the purpose of the trust had ended with Ruth's death. The Supreme Court disagreed with the lower court's reasoning and remanded. On remand, the county court granted the trustee's and remainder beneficiaries' motions for summary judgment. The Supreme Court affirmed, concluding that the trustee did not have a fiduciary duty imposed either through statute or the language of the trust to pay Ruth's medical expenses and did not abuse its discretion in declining to pay Ruth's medical expenses from the trust principal.
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