DOCSLIB.ORG

Testamentary Trusts Post-Death: Bespoke Planning Opportunities by Matthew Burgess, CTA, Director, View Legal

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Testamentary Trusts Post-Death: Bespoke Planning Opportunities by Matthew Burgess, CTA, Director, View Legal COVER Testamentary trusts post-death: bespoke planning opportunities by Matthew Burgess, CTA, Director, View Legal Abstract: It is clear that there is a growing need for estate planning to utilise appropriate structuring. Wills using testamentary trusts should be the starting point for any comprehensive estate planning exercise. The difficulty in many such exercises is that serious attempts to devise and implement a plan are often not made until some triggering event, such as financial or matrimonial misfortune, life-threatening illness or death, stimulates action. This article considers options available for implementing trust structures after death when appropriate planning was not done during a person’s lifetime, and the post-death strategies which can be used to fix estate planning problems. In such a case, it is possible to establish a trust following a person’s death, including an estate proceeds trust or a superannuation proceeds trust. The article discusses the benefits and limitations of these strategies in turn, and also includes a summary of child maintenance trusts. Introduction The focus of this article is on options (the “intestacy” rules). The set formula is In light of fundamental changes to the available for implementing trust structures different in every Australian jurisdiction. taxation regime and the expanding wealth after death when appropriate planning was There are a range of issues that determine of Australia’s ageing population, there is a not done during a person’s lifetime, and the which jurisdiction’s rules will apply. growing need for estate planning to utilise post-death strategies which can be used to The intestacy rules will also apply where a appropriate structuring. “fix” estate planning problems. person dies without a valid will in relation to all of their assets. In this regard, it can in It is well established that wills utilising Strategies where there is no testamentary trusts (TTs) should be the fact be possible to die “partially intestate”. TT in a will This simply means that there are assets in starting point for any comprehensive estate While the best approach is to always a person’s estate that are not validly dealt planning exercise to ensure wealth passes “begin with the end in mind” and with under the will. efficiently to the intended recipients and ensure that a person’s estate planning that the transfer takes place at the intended The following summary gives a broad documentation achieves their objectives time. example of the way in which the intestacy (for example, by including a TT), it is rules often work (although as noted the Asset protection strategies and the use possible to establish a trust following position varies in each state). If a person of special purpose trusts are important a person’s death, such as an estate dies leaving: issues to consider in estate planning, proceeds trusts (EPT) or a superannuation their spouse (including a de facto particularly where potential beneficiaries proceeds trust (SPT). spouse), but no children: their spouse are in financially high risk occupations, These “after-death trusts” should be receives everything; such as professional practice, or in considered as an asset protection and tax business, and where there is a risk that a their spouse and children: their spouse planning tool. In certain circumstances, personal relationship of a beneficiary may receives the first $150,000 and one-half they can be used to create a “set and degenerate in the future. of the balance of the estate if there is forget” structure that provides peace one child, or one third of the balance Potential beneficiaries that fall into any of of mind now, while still accommodating if there is more than one child. The these “at risk” categories will be exposed to the needs of evolving family dynamics children share the balance between losing assets, unless appropriate structures in the future. them; are put in place under the estate plan. children but no spouse: their children The difficulty in many estate planning What is an estate proceeds receive a share each, but only once they exercises is that serious attempts to devise trust? turn 18 years of age or get married; and implement a plan are often not made Before looking at how an EPT operates, until some “triggering event” stimulates it is useful to provide an overview of no spouse or children: the person’s action. Australian intestacy law, as these rules are parents will share the estate (if both are alive then equally); and Often the triggering event is itself an relevant to the quantum of the proceeds issue that may jeopardise the ability that will act as the capital fund of the EPT. no spouse, no children and no parents: their siblings share equally. to implement appropriate strategies, If a person dies without a will, the law says for example, financial or matrimonial that their assets will be distributed to their The amount received by each person will misfortune or life-threatening illness. family, as determined by a set formula depend on the value of the estate and 72 TAXATION IN AUSTRALIA | AUGUST 2015 COVER whether any other beneficiaries are entitled ability to split income according to the the EPT, only the income generated to the assets of the deceased. financial circumstances and needs of by that portion of the capital which the willmaker’s children would have If the person does not have any family the deceased’s children. members who qualify, then the assets may Diagram 1 illustrates how EPTs work. received on an intestacy will be entitled to the concessional rates of taxation; pass to the government bono vacantia. The income distributed from the EPT and may be used to pay for the children’s Estate proceeds trust education, living and other expenses. any assets that do not form part A proceeds trust can be either an “estate Any income received by a minor will of the willmaker’s estate (such as proceeds” trust (where the proceeds were be taxed at the normal adult rate, assets owned as joint tenants with originally part of the deceased estate), rather than the penal rate that normally a spouse or insurance policies that or a “non-estate proceeds” trust (where applies to income distributions to infant are owned by the surviving spouse) the proceeds originate from an asset children. will not be able to be contributed to which does not form part of the deceased the EPT. This means that, assuming the children estate). Some common examples of are not earning other income, they will Table 1 provides a brief summary of the non-estate proceeds are those funded be eligible, once rebates are taken into key technical differences between an EPT by superannuation entitlements or life account, for more than $20,000 tax-free and a TT. insurance. for income received by each child each Despite these limitations, an EPT can be An EPT is a trust established by a deed financial year. Any additional income will of particular benefit where no TT has been after the death of the deceased. It is most be taxed at the ordinary adult marginal established and: commonly used to obtain advantageous rates. for families with minor children where income tax treatment for income allocated There are numerous technical issues extra income would be needed to to minor beneficiaries. that must always be reviewed before support the surviving family members Generally, an EPT is more restrictive than establishing an EPT, including: should a parent die; and an ordinary TT established pursuant to the person distributing the assets to the the terms of a will. The key difference where legitimately minimising tax EPT must have received them under between an EPT and a TT is that the minor and having flexibility in relation to tax the will of the deceased; beneficiaries (persons under 18 years of planning is important. age on establishment of the trust) must the transfer of assets into the EPT What is a superannuation be the ultimate capital beneficiaries of the must occur within three years of the trust, meaning the assets of the trust must deceased’s death; proceeds trust? ultimately vest in them. In contrast, there the concessional rates of tax are An SPT is a trust that is established solely is complete flexibility when nominating the very unlikely to be available to the to receive superannuation proceeds on the ultimate capital beneficiaries of a TT. grandchildren of the deceased; death of a fund member. An SPT can be established by a will or by deed after the The main advantage of an EPT is the while assets in excess of what the death of an individual. concessional tax treatment of income willmaker’s children might have received distributed from the trust and the on an intestacy can be contributed to Before considering the issues relating to establishing a post-death SPT, it is relevant to consider the operation of an Diagram 1 appropriately crafted SPT in a will and the taxation and asset protection benefits it Property affords. Gift into EPT Deceased Settlor/adult beneficiary SPT established in a will The Income Tax Assessment Act 1997 (Cth) (ITAA97) provides that a superannuation death benefit, paid to a death benefit dependant as a lump sum, is not assessable income. A death benefit dependant is defined as:2 EPT a spouse or former spouse of the deceased; a child, aged below 18, of the deceased; – Establish within three years a person with whom the deceased had of death. an “interdependency relationship”;3 and – Holds the sum the beneficiaries a person financially dependent on the would have inherited under Minor beneficiaries intestacy law. deceased just before they died.
Load more

Recommended publications
  • Spring 2014 Melanie Leslie – Trusts and Estates – Attack Outline 1
    Spring 2014 Melanie Leslie – Trusts and Estates – Attack Outline Order of Operations (Will) • Problems with the will itself o Facts showing improper execution (signature, witnesses, statements, affidavits, etc.), other will challenges (Question call here is whether will should be admitted to probate) . Look out for disinherited people who have standing under the intestacy statute!! . Consider mechanisms to avoid will challenges (no contest, etc.) o Will challenges (AFTER you deal with problems in execution) . Capacity/undue influence/fraud o Attempts to reference external/unexecuted documents . Incorporation by reference . Facts of independent significance • Spot: Property/devise identified by a generic name – “all real property,” “all my stocks,” etc. • Problems with specific devises in the will o Ademption (no longer in estate) . Spot: Words of survivorship . Identity theory vs. UPC o Abatement (estate has insufficient assets) . Residuary general specific . Spot: Language opting out of the common law rule o Lapse . First! Is the devisee protected by the anti-lapse statute!?! . Opted out? Spot: Words of survivorship, etc. UPC vs. CL . If devise lapses (or doesn’t), careful about who it goes to • If saved, only one state goes to people in will of devisee, all others go to descendants • Careful if it is a class gift! Does not go to residuary unless whole class lapses • Other issues o Revocation – Express or implied? o Taxes – CL is pro rata, look for opt out, especially for big ticket things o Executor – Careful! Look out for undue
    [Show full text]
  • Testamentary Trusts
    TESTAMENTARY TRUSTS Trusts that are created pursuant to the terms of a probated Last Will and Testament are commonly referred to as “testamentary trusts.” 1. Applicable Law. The applicable law for these Trusts is the Kansas Probate Code (not the Kansas Trust Code). The authority of the probate court as to testamentary trusts is set forth at K.S.A. 59-103(7), as follows: to supervise the administration of trusts and powers created by wills admitted to probate, and trusts and powers created by written instruments other than by wills in favor of persons subject to conservatorship; to appoint and remove trustees for such trusts, to make all necessary orders relating to such trust estates, to direct and control the official acts of such trustees, and to settle their accounts. K.S.A. 59-103(a) Docket Fee for Trusteeship $69.50 [Rev. Ch. 80, Sec. 17, 2017 Sess. Laws] 2. Obtaining Appointment of Testamentary Trustee. Based upon the statutory grant of Court authority under K.S.A. 59-103(7), it appears necessary for a nominated testamentary trustee to be formally appointed by the Court. As a practical matter, the judicial grant of Letters of Trusteeship may be necessary to obtain delivery of the trust’s share of probate assets, to deal with banks and financial institutions (such as to open accounts), or to later sell assets. It is also appropriate to establish the formal commencement of the new fiduciary relationship and the Trustee’s formal acceptance of the obligation as fiduciary for the newly established testamentary trust.
    [Show full text]
  • A Simple, Effective Will
    Pace Law School Continuing Legal Education Bridge the Gap: December 6-7, 2014 A SIMPLE, EFFECTIVE WILL Daniel Timins. Esq. [email protected] 450 7th Avenue, Suite 1500 New York, New York 10123 (212) 683-3560 Telephone Number www.timinslaw.com Daniel A. Timins, Esq. Law Offices of Daniel Timins FOREWORD It is sometimes mind-numbing to see the absurd depth that attorneys will sink to when drafting legal documents: Details, definition sections, contingency upon contingency upon contingency. Yet, in the end, the artful litigator will still find a sufficient number of loopholes and arguments in any document, no matter how solid the drafter intended it to be. The statement “simple is better” when it comes to legal documents may be true, and perhaps equally so when it comes to the central estate planning document: A Last Will and Testament. There are many two page “Sweetheart Wills” drafted by laymen which are admitted to Probate with little problem. On the reverse side, there are a near-unlimited number of Court proceedings based on multiple page Wills drafted by the most skilled attorneys that languish in the Surrogate’s Court for years. And, of course, the inverse is equally true for both parties. The “Plain English” trend in legal writing should be observed with modern Wills even more so than other legal documents: The Will should be drafted in a way that allows the client to understand what legal concepts are being conveyed. To do otherwise may have the negative effects of not fulfilling the Testator’s desires, and may open the Will up to the protracted legal intervention that the drafter was hoping so hard to avoid.
    [Show full text]
  • Ademption by Extinction: Smiting Lord Thurlow's Ghost
    ADEMPTION BY EXTINCTION: SMITING LORD THURLOW'S GHOST John C. Paulus* INTRODUCTION Testator (T)properly executes a will giving his farm, Blackacre, to his daughter (D), and the rest of his property to his son (S). T lives with D on Blackacre. Three years later T sells Blackacre and buys Whiteacre. T and D live together on Whiteacre until T's death four years later. From numerous utterances and acts it is very evident that T wants D to have Whiteacre for her own after his death. Will Whiteacre go to D or S? In most (maybe all) of the states, the answer would be, "S." The identity rule enunciated by Lord Thurlow in 1786 is followed.' As indicated by its application to T, D, and S, the dominating philosophy can bring forth some unsatisfactory results. Lord Thurlow's opinion calls for the application of a simple test in determining whether or not a specific devise adeems: If the asset identified as the exclusive subject of the devise is not held by the testator at his death, the devise fails.' Ademption by extinction, as this problem area is uniformly called, is reduced to a matter of identifying, if possible, the devised item in the estate.' The most often quoted statement by Lord Thurlow is: "And I do * Professor of Law, Willamette University. Visiting Professor of Law, Texas Tech University 1970-71. 1. Ashburner v. Macguire, 29 Eng. Rep. 62 (Ch. 1786). This hypothetical is similar to the facts in Ashburner in that the testator sells the devised asset (Blackacre). Three years later in Stanley v.
    [Show full text]
  • Pouring Nonprobate Assets Into a Testamentary Trust: a Half-Protected Activity in Alaska
    Pouring Nonprobate Assets Into a Testamentary Trust: A Half-Protected Activity in Alaska This Note examines the use of a testamentary trust as the recepta- cle for transfers of nonprobate assets. First, this Note describes the two principal objections that courts have raised with respect to the designation of a testamentary trustee as the beneficiary of nonprobateassets. Then, this Note evaluates statutory attempts to address these two objections. Finally, this Note concludes that recently proposed House Bill 308 could easily be revised to provideAlaskans with comprehensiveprotection from the dangers posed by both objections. I. INTRODUCTION During the last half century, an enormous change has occurred in both the nature of wealth and the way in which it is held.' So- called "will substitutes" such as life insurance, pension and retirement accounts, joint accounts and even revocable trusts have become commonplace and increasingly significant in the asset portfolios of middle and upper-income Americans. Will substitutes permit the transfer of property at death through the use of beneficiary designations. More importantly, however, will substi- tutes transfer title in a way that completely avoids the probate system. Thus, as the use of will substitutes has proliferated, the traditional system of title-clearing through a probate court has suffered a corresponding marginalization. Part of the marginalization of the probate system can be traced to popular resentment of it. Norman Dacey's bestseller How to Avoid Probate,2 now in its fifth edition,3 reflects the widespread public scorn that crystallized around the middle of this century. The probate process has earned a reputation as an expensive, Copyright © 1995 by Alaska Law Review 1.
    [Show full text]
  • An Introduction to Testamentary Trusts
    Testamentary Trusts – An Introduction What is a Testamentary Trust? A testamentary trust is a trust created by a Will. It is generally a discretionary trust – one where the Trustee has full discretion about who benefits, and to what extent, under the trust. Why would I use a Testamentary Trust? Testamentary trusts can make sure the inheritance reaches the intended recipients. An independent trustee can guarantee that vulnerable beneficiaries, such as very young children or the ill, incapacitat- ed, unstable or disabled, will be provided for. Properly drafted, trusts can also guard against the often-divisive aftermath of divorce, and ensure that in the event of remarriage, assets will be passed on to the children or grandchildren of the testator. Testamentary trusts are also a wise precaution if the beneficiaries may face legal action or bankruptcy, such as those in professions frequently subject to litigation, or high-risk business. This form of pro- tection is often referred to as Asset Protection. Can a Will-Maker Restrict the Terms of a Testamentary Trust? The terms of testamentary trusts are contained in the Will. They can include restrictions on any or all of the beneficiaries or conversely, grant them extensive control. In effect, these can enable you as the Will-maker, or testator, to rule from the grave. It is up to the testator whether they vest control in the beneficiaries or in the hands of an independent trustee. Giving control to the beneficiaries allows a greater degree of flexibility; but a managerial trustee may be better if the beneficiaries are not able to control their own finances.
    [Show full text]
  • Uniform Trust Code
    D R A F T FOR DISCUSSION ONLY UNIFORM TRUST CODE NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS MARCH 10, 2000 INTERIM DRAFT UNIFORM TRUST CODE WITHOUT PREFATORY NOTE AND COMMENTS Copyright © 2000 By NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS The ideas and conclusions set forth in this draft, including the proposed statutory language and any comments or reporter’s notes, have not been passed upon by the National Conference of Commissioners on Uniform State Laws or the Drafting Committee. They do not necessarily reflect the views of the Conference and its Commissioners and the Drafting Committee and its Members and Reporters. Proposed statutory language may not be used to ascertain the intent or meaning of any promulgated final statutory proposal. UNIFORM TRUST CODE TABLE OF CONTENTS ARTICLE 1 GENERAL PROVISIONS AND DEFINITIONS SECTION 101. SHORT TITLE. ............................................................ 1 SECTION 102. SCOPE. ................................................................... 1 SECTION 103. DEFINITIONS. ............................................................. 1 SECTION 104. DEFAULT AND MANDATORY RULES. ...................................... 4 SECTION 105. QUALIFIED BENEFICIARIES. ............................................... 5 SECTION 106. NOTICE. .................................................................. 5 SECTION 107. COMMON LAW OF TRUSTS. ................................................ 6 SECTION 108. CHOICE OF LAW. .........................................................
    [Show full text]
  • Using a Testamentary Trust in Your Estate Planning
    Using a testamentary trust in your estate planning Testamentary trusts can be useful tools in estate planning to help fulfill your wishes, preserve your estate assets, as well as support loved ones or charities upon death. What is a testamentary trust? Generally, a testamentary trust is a trust that takes effect upon the death of the “settlor” and is established by the deceased’s Will or a Court Order. One or more trustees are appointed to take legal ownership and control of property previously owned by the deceased for the benefit of one or more beneficiaries. The appointed trustees are required to act in the best interest of the beneficiaries. A testamentary trust is a separate entity for tax purposes and must file a separate tax return. The relationship between the trustees and the beneficiaries is central to the creation of the trust. This relationship is governed by statute, the common or civil law, and where there is one, the deceased’s Will or another testamentary trust instrument. Using a testamentary trust in your estate planning Tax treatment of testamentary trusts If the estate has not been distributed within 36 months after death, income earned and retained by the trust or estate will As of January 1, 2016, income retained in a testamentary be taxed at the highest marginal tax rate. The trust will also trust is taxed at the highest combined federal and provincial have a deemed taxation year-end immediately before the tax rates based on the province of residence of the trust. end of the 36 months, and will be subject to a calendar year- There are two exceptions to this tax treatment.
    [Show full text]
  • Uniform Testamentary Additions to Trusts Act (1991)
    UNIFORM TESTAMENTARY ADDITIONS TO TRUSTS ACT (1991) drafted by the NATIONAL CONFERENCE OF COMMISSIONERS ON UNIFORM STATE LAWS and by it APPROVED AND RECOMMENDED FOR ENACTMENT IN ALL THE STATES at its ANNUAL CONFERENCE MEETING IN ITS ONE-HUNDREDTH YEAR IN NAPLES, FLORIDA August 2 - 9, 1991 WITH PREFATORY NOTE AND COMMENTS Approved by the American Bar Association Dallas, Texas, February 4, 1992 September 11, 2014 UNIFORM TESTAMENTARY ADDITIONS TO TRUSTS ACT (1991) The Committee that acted for the National Conference of Commissioners on Uniform State Laws in preparing the Uniform Testamentary Additions to Trusts Act (1991) was as follows: RICHARD V. WELLMAN, University of Georgia, School of Law, Athens GA 30602, Chairman FLORENCE NELSON CRISP, P.O. Box 7146, Greenville, NC 27835 RICHARD E. FORD, 203 W. Randolph Street, Lewisburg, WV 24901 CLARKE A. GRAVEL, P.O. Box 1049, Burlington, VT 05402 JOHN H. LANGBEIN, Yale Law School, New Haven, CT 06520 ROBERT A. STEIN, University of Minnesota, School of Law, Minneapolis, MN 55455 OGLESBY H. YOUNG, 8th Floor, 520 S.W. Yamhill Street, Portland, OR 97204 LAWRENCE A. WAGGONER, University of Michigan Law School, Ann Arbor, MI 48109- 1215, Reporter Review Committee FRANK W. DAYKIN, Chairman, 4745 Giles Way, Carson City, NV 89704 TIMOTHY J. CRONIN, JR., New England School of Law, 154 Stuart Street, Boston, MA 02116 ALVIN J. MEIKLEJOHN, JR., Suite 1600, 1625 Broadway, Denver, CO 80202 Ex Officio LAWRENCE J. BUGGE, P.O. Box 1497, Madison, WI 53701, President (Member Ex Officio) WILLIAM J. PIERCE, University of Michigan Law School, Ann Arbor, MI 48109-1215, Executive Director WILLIAM S.
    [Show full text]
  • Practical Guidance at Lexis Practice Advisor
    ® Practical guidance at Lexis Practice Advisor Lexis Practice Advisor® offers beginning-to-end practical guidance to support attorneys’ work in specific transactional practice areas. Grounded in the real-world experience of expert practitioner-authors, our guidance ranges from practice notes and legal analysis to checklists and annotated forms. In addition, everything needed to advise, draft and deliver your work product to clients in 12 practice areas is provided. Please enjoy the following Lexis Practice Advisor Practical Guidance excerpt. Personal Trusts Under New York Law by Ian Weinstock, Kostelanetz & Fink, LLP Trusts are extremely flexible vehicles that individuals and entities can use to achieve a variety of purposes that involve one party holding property on behalf of another party. This practice note will focus on the uses of personal trusts for estate planning in New York. New York has a very well-developed trust law, as you would expect based on its rich history as a center of banking and finance and, of course, its large population of wealthy individuals. This practice note will provide you with a considerable amount of background information on New York trust law to make sure you have a suitable understanding of the legal terrain, and then will delve into a number of practical trust drafting and administration issues. This practice note will be of particular use to (i) junior New York attorneys practicing in the trusts and estates (T & E) field, (ii) more seasoned New York attorneys whose practice is not focused on T & E but who occasionally encounter trusts, and (iii) non-New York T & E lawyers who are interested in what makes New York trust law distinctive.
    [Show full text]
  • Testamentary Trusts
    TESTAMENTARY TRUSTS A testamentary trust is a trust that is established by your Will, where some or all of your estate assets are held “upon trust” for beneficiaries. It only comes into operation when you die, but you set the terms of the trust now. FIXED TESTAMENTARY TRUST A fixed testamentary trust is one in which the entitlements of the beneficiaries are clearly defined and cannot be amended. “Fixed” entitlements set out who receives the income and capital of the trust and can extend to the conditions upon which a person receives their entitlement. For example, a wife may leave her assets (“capital”) to be held upon trust to pay the income to her husband for his lifetime or until he remarries and upon the first of those to occur, the capital of the trust become wholly distributable to her children who are then surviving and upon them reaching 25 years of age. DISCRETIONARY TESTAMENTARY TRUST Like a fixed testamentary trust, assets of a discretionary testamentary trust are held by the trustee (who may or may not be controlled by the person intended to be the main beneficiary) for the benefit of the beneficiaries. However, the trustee has a broad discretion to distribute the trust’s income and/or capital among a range of potential beneficiaries (usually descendants and their spouses but it can be tailored to your needs) including the main beneficiary. The trust must “vest” – that is, be finalised and the assets distributed – within 80 years, so your descendants could benefit from your wealth for years to come.
    [Show full text]
  • Estate of Loring Roger J
    University of California, Hastings College of the Law UC Hastings Scholarship Repository Opinions The onorH able Roger J. Traynor Collection 12-17-1946 Estate of Loring Roger J. Traynor Follow this and additional works at: http://repository.uchastings.edu/traynor_opinions Recommended Citation Roger J. Traynor, Estate of Loring 29 Cal.2d 423 (1946). Available at: http://repository.uchastings.edu/traynor_opinions/225 This Opinion is brought to you for free and open access by the The onorH able Roger J. Traynor Collection at UC Hastings Scholarship Repository. It has been accepted for inclusion in Opinions by an authorized administrator of UC Hastings Scholarship Repository. For more information, please contact [email protected]. [L. A. No. 19393. In Bank. Dec. 17, 1946.] Estate of GEORGE E. LORING, Deceased. SARAH M. LORING et aI., as Trustees, Petitioners and Re­ spondents, v. TOWN OF KINGSLEY, Appellant; BRAILLE INSTITUTE OF AMERICA, INC., et &1., Contestants and Respondents. SA.RAH M. LORING et aI., Appellants, v. TOWN OF KINGSLEY et aI., Respondents. BRAILLE INSTITUTE OF AMERICA, INC., Appellants, v. TOWN OF KINGSLEY et a1., Respondents. [1] Decedents' Estates-Final Distribution-Decree-Ooncluaive­ ness.-A decree of distribution that has become ftnal is a con­ clusive determination of the terms and validity of a testa­ mentary trust and of the rights of all parties thereunder. [2] IeL-Final Distribution-Decree-PersoDS Ooncluded.-A bene­ Aciary of a testamentary trust is bound by the decree of dis­ tribution, although he was not a party to the distribution pro­ ceedings and did not avail himself of the opportunity given by Prob.
    [Show full text]