Bank Of Dallas v. Republic National Bank Of Dallas

540 S.W.2d 499 (1976)

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Nature of the Case

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Facts

P filed an application for Writ of Garnishment against D and Trustee of the Patricia Murray Fewell Trust, seeking to garnish effects of Patricia Murray Fewell and her husband George H. Fewell, to satisfy a $30,471.88 judgment. Patricia as Settlor, on January 28, 1971, transferred certain properties to D for the 'use and benefit of herself and of her children', and thereafter amended such Trust. P in its discretion could also invade the principle to support Patricia. Article 11(b) provides that upon the death of the settlor the trustee shall distribute or hold the then remaining principal and undistributed income as the settlor may have appointed by will. Patricia established an irrevocable spendthrift trust for her own benefit and for the benefit of her children. Upon Patricia's death, the remaining trust corpus was to be distributed as appointed by her in her will. Patricia had the power of appointment. P contends that Patricia holds a general power of appointment exercisable at her death by will, which is garnishable. D contends that the corpus of the trust nor its income was not subject to garnishment. The court held that the principal was not subject to garnishment but the income distributions were.