First Alabama Bank of Montgomery v. Adams
Alabama Supreme Court
382 So. 2d 1104 (1980)
- Written by Serena Lipski, JD
Facts
W. C. Adams’s will directed his residuary estate to a trust with First Alabama Bank of Montgomery (First Alabama) as trustee. When W. C. died, his wife, Vera, daughter, Adelia Coker, and two grandchildren, Andrea and Wayne Coker, were living. According to the will, First Alabama was to pay Vera trust income and principal for her lifetime maintenance and support. Following Vera’s death, First Alabama was to make disbursements to Adelia for her lifetime maintenance and support. After Adelia’s death, the trust instructed First Alabama to make disbursements to W. C.’s grandchildren for their lifetime maintenance and support. At the death of a grandchild, the grandchild’s share was to be paid free and clear to the grandchild’s descendants once the descendant turned 21. The will also contained a savings clause stating the trusts created by the will would not continue beyond the time legally allowed for the vesting of any beneficiary’s share. At the expiration of the time period, the trust would terminate, and the trust estate would be paid to the beneficiaries in the same proportions as the will provided. The will was challenged, and it was argued that the trust violated the rule against perpetuities.
Rule of Law
Issue
Holding and Reasoning (Maddox, J.)
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