Brown v. Miller - 33 Fla. L. Weekly 2433 (Dist. Ct. App. 2008)

Rule:

In construing the provisions of a trust document, the cardinal rule is to give effect to the grantor's intent, if possible.

Facts:

The husband had been married to the wife, who was also the mother of the remainderman. Upon the mother's death, part of her trust assets were placed in a sub-trust for the husband's benefit, as directed by the language of the relevant trust documents. Between the date of his wife's death and a later date, the husband transferred a lesser amount from the sub-trust to himself and others. On the later date, the husband transferred the remaining balance, more than $ 7 million, to the trust of the mother's husband. No dispute existed but that the trust of the mother's husband was an irrevocable trust and that the husband maintained 100 percent control over its assets. After the husband died, the remainderman brought an action to invalidate the $ 7 million transfer. The trial court ruled that the transfer was improper.

Issue:

Was the transfer proper?

Answer:

Yes

Conclusion:

The appellate court found that the transfer was proper because it was in effect a transfer to the husband as the trust documents intended. The court also found that the trust language did not prohibit such a large transfer of money. Finally, the court held that the husband could not have acted in bad faith by emptying the sub-trust since he had a right to withdraw all of the sub-trust's assets.