Estate of Fournier - 2006 ME 89, 902 A.2d 852

Rule:

A trust may be created by transfer of property to another person as trustee during the settlor's lifetime. Me. Rev. Stat. Ann. tit. 18-B, § 401(1) (2005).

Facts:

In 1998 or 1999, Fournier asked a couple who were friends with him if they would "hold some money for him." They said they would, and Fournier delivered two boxes, each containing $200,000 cash, to their home. Fournier asked them to hold the $400,000 in secret until his death and then deliver it to his sister, Faustina Fogarty. Fournier explained that Fogarty "needed it more" than his other sister, Juanita Flanigan. Although he requested secrecy from his friends, Fournier told both Flanigan and her daughter that his friend was holding money for him.

Fournier died in 2005, survived by Fogarty and Flanigan. Under his will, Fogarty was appointed the personal representative of his estate. Upon learning of Fournier's death, Fogarty and her son met privately with the couple, and the husband gave Fogarty the money. Fogarty petitioned for a declaratory judgment to establish that during his lifetime Fournier had created an oral trust for her benefit. Following a hearing, the court denied her petition and she brought this appeal.

Issue:

Did Fournier create an oral trust for Fogarty’s benefit?

Answer:

Yes.

Conclusion:

The state supreme court found that an oral trust had been created for Fogarty’s benefit and, thus, the money passed to her as a beneficiary.