Suggested Time to Complete: 36 minutes
Betty’s Beach House and Trust – Difficult
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This question should be answered using three IRAC structures. Please include all relevant key words in your answer.
Betty creates a trust to maintain her beach house and mountain cabin. The beneficiaries, her sister Annie and her brother George, have the right to use the house and cabin. Upon Betty’s death, the house and cabin will go to Annie. Betty gives the power of appointment over the house to George. When Betty dies, George directs the trustee to give the house and cabin to his daughter instead of Annie. Now, Annie is arguing that she has the right to the house and the cabin, that George has exceeded his power, and that both appointments are invalid.
Is Annie likely to succeed in court?
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To answer this question, you should first think about and discuss whether George violated Annie’s right to the house and cabin (when is the holder able to direct the trustee to distribute some of the trust property without regard to the provisions of the trustee?), then, whether George exceeded his powers of appointment, and finally, whether George’s appointments are invalid (if you make one invalid appointment, are others still valid, and what happens to the invalid appointment?).
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