National Shawmut Bank v. Cumming

91 N.E.2d 337 (1950)

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Nature of the Case

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Facts

This was a bill in equity consisting of a claim by the widow of the settlor that a trust he created was invalid. The widow contends that the trust was created in bad faith with intent to defraud her of her rights under Vermont law. The trial court found the trust valid, and the widow appealed. The trial court found that she had no rights except as a beneficiary under the trust instrument and that the trust was not made to defraud the widow of her statutory rights. The trust called for income to be paid to the settlor for life as he might direct in writing and that after his death income should be paid equally to his widow, his mother, two brothers, and three sisters and the principal used to ensure the receipt of at least $150 monthly to each beneficiary. Upon the death of the settlor and the last of the beneficiaries, the trust was to terminate, and distribution made to the nieces and nephews of the settlor then living and to the living issue of each deceased niece or nephew by right of representation. The settlor reserved the right to revoke, amend, or to withdraw principal in whole or in part. The settlor died in Vermont at 57. The trust was created in 1944. The settlor had married his widow in 1925, and she was several years his senior and a widow at that time with three children. The trust was supposed to be interpreted under Massachusetts law. The dispute as to which law applied was paramount during trial; Vermont would not allow the trust to disinherit the widow and Massachusetts would.