Probate & Trust Law Section Conference Manual ... - Minnesota CLE

other manner whatsoever disposing of any property, real or personal,
belonging to either or both of them.” While the divorce was pending, the
husband changed the beneficiary designation on his life insurance and
retirement accounts from the wife to their children. The husband died
before the divorce was complete. The wife sued her children seeking to
impose a constructive trust to recover the proceeds from the life insurance
and retirement accounts. The superior court dismissed the wife’s claims
against children. The New Hampshire Supreme Court held that the plain
language of the anti-hypothecation order that required the parties to refrain
from disposing of property allowed the husband to make the changes to
the beneficiaries. The court reasoned that the wife did not possess a
vested property interest, and absent a property interest, there could be no
violation of the anti-hypothecation order. Therefore, the wife could not
impose a constructive trust on the alleged violation of the antihypothecation
order.
2. Beason v. Kleine, 947 N.Y.S.2d 275 (N.Y. App. Div. 2012). Imposition
of a constructive trust was appropriate because of confidential
relationship and promises made to the grantor. Plaintiff transferred
real property to his stepson retaining a life estate in the property. Plaintiff
was not advised by his attorney that the deed transferred ownership of the
property and that he would not be able to divide that property between
both of his stepchildren, as he had intended. Plaintiff had communicated
to his stepson that he intended for the property to be divided equally
between his stepson and his sister and the stepson promised to help “make
that happen.” The Court concluded that the close, confidential
relationship of the plaintiff and his stepson and the trust placed in the
stepson justified imposing a constructive trust.
3. Reinhardt University v. Castleberry, 734 S.E.2d 117 (Ga. Ct. App.
2012). Constructive trust was imposed on charity despite lack of any
wrongdoing. Son was a trustee of a marital trust for his mother and
through a series of financial transactions, trustee transferred over
$1,000,000 to charity in partial satisfaction of his pledge. Upon mother’s
death, other beneficiary filed an action seeking to impose a constructive
trust on the proceeds received by the charity. Constructive trust is
appropriate when property is acquired by fraud or where although
acquired originally without fraud, it is against equity that the title should
remain with the one who holds it. Because the trustee was not authorized
to transfer the funds to the charity, the imposition of a constructive trust on
the proceeds received was proper, even without any wrongdoing on the
part of the charity.
L. Damages and Attorneys’ Fees in Trust Litigation
1. Masse v. Perez, 58 A.3d 273 (Conn. App. Ct. 2012). Treble damages
imposed on trustee were an appropriate because of trustee’s theft of
57