Second National Bank Of New Haven v. Harris Trust & Savings Ban

29 Conn. Supp. 275, 283 A.2d 226 (1971)

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Nature of the Case

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Facts

Settlor created an inter vivos trust, the income from which was to be paid to her daughter Margaret. The instrument also gave Margaret a general testamentary power of appointment over half of the trust corpus. Settlor retained the power to 'revoke, modify or alter' the terms of the trust 'respecting payment of income.' In her will, Margaret exercised her power of appointment by creating another trust. Under Margaret's trust, income was to be paid to her daughter Mary for thirty years, at which time the corpus was to be distributed to Mary or her issue. Mary was born after Settlor's death. The trustee (P) petitioned for a determination of how the half of the trust corpus subject to Margaret's power of appointment was to be distributed. Some persons with an interest in the trust (D) claim that Margaret's exercise of the power of appointment violated the Rule Against Perpetuities.