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Keywords

statutetrialtrustwillappellantappelleelevy
precedenttrialfiduciarytrustwillcorporationcondition precedent

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Trosch v. Maryland Nat. Bank, 32 Md.App. 249, 359 A.2d 564

Facts

Ivan E. Trosch executed a trust instrument and a will on the same day. The will included a residuary clause that referenced the trust, which was described as 'Trustees under Declaration of Trust from me dated (no date appears).' The appellant, Dorothy Trosch, claimed the residue of the estate, arguing that the trust was invalid due to the lack of a trust corpus and that it had been revoked by Trosch's later actions regarding life insurance policies.

The preamble to which she alludes designates what property is to comprise the trust corpus: ‘WHEREAS, the Settlor has designated, or is about to designate the said Trustees as the beneficiaries or assignees of the policies of insurance on his life described in the schedule marked ‘Schedule A’ attached hereto as part hereof, and the Settlor may hereafter designate the Trustees as beneficiaries or assignees of other policies on his life, and may add other property to this trust estate by grant in trust, or by Last Will and Testament, and the Settlor desires the proceeds of said policies and any other property which may be added to the said trust estate by his Last Will and Testament, or by grant, or which may be added in any other manner permitted hereunder, to be held in trust for the uses and purposes hereinafter set forth.'

Issue

Whether the trust executed by Ivan E. Trosch was in existence at the time of his death and whether it was validly incorporated by reference into his will.

The sole question is whether a trust executed by Ivan E. Trosch simultaneously with his will was in existence at the time of his death, because the residuary clause of his will was subject to that condition precedent.

Rule

A trust can be incorporated by reference into a will if the will sufficiently describes the trust instrument to permit its identification, even if the trust instrument lacks a date.

Estates and Trusts Art., s 4-107 provides: ‘The terms of any writing which is in existence when a will or trust instrument is executed, including but not limited to a statement of administrative provisions and fiduciary powers recorded in a record office of this state, may be incorporated into the will or trust instrument by reference to the extent the language of the will or trust instrument manifests an intent to do so and describes the writing sufficiently to permit its identification. . . .’

Analysis

The court found that the will adequately described the trust instrument, which was executed on the same day, and that the absence of a date was not fatal. The court also noted that the Maryland statute allows for legacies to unfunded inter vivos trusts, provided the trust instrument was executed and in existence at the time of the will's execution. The court concluded that the trust was valid and in existence at Trosch's death.

We hold that the trust was in existence as provided in s 4-411 and was identified sufficiently to incorporate it into the will in conformance with s 4-107, so as to permit the distribution of the residue of Trosch's estate to it both under the law and under the terms of his will.

Conclusion

The court affirmed the trial court's ruling that a valid trust was created and incorporated into the will, allowing for the distribution of the estate's residue to the trust.

Affirmed.

Who won?

The appellees, Jeanette Levy and the Maryland National Bank, prevailed because the court found that the trust was validly created and incorporated into the will.

The trial court held that a valid trust was created by the execution of the trust instrument and was given testamentary vitality by incorporation by reference into Trosch's will.

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