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

promissory notes and/or mortgages, be treated as advancements, and deducted
from his share of her estate.
Bank of America, N.A. (“Trustee”) as Trustee for the Trust petitioned the court
for guidance on the terms of the Trust pertaining to loans and advancements.
They also sought guidance in calculating the two sons’ interest in the trust
income and principle. The provision as to which interpretation was sought by
the Trustee was as follows:
“7. Allocation of remaining trust assets.
…I intend my children to be treated essentially equally as to
advancements and loans received during my lifetime or assets of my
estate received at my death. If, at my death, either child of mine is
indebted to me on a Promissory Note or mortgage, I direct that the
outstanding principal balance and accrued interest of the indebtedness
be considered an advancement to such child from my estate and be
deducted from the share of the residue due my child…thus reducing his
share of other assets of my estate accordingly. The amount of said
outstanding principal balance and accrued interest shall be determined
by my trustees based upon my records or the trustees’ records. Such
indebtedness shall be considered an asset of my estate for purposes of
computing the value of said estate.”
Lawrence moved for summary judgement arguing that the Trust provisions on
loans and advancements were clear and unambiguous and only pertained to
indebtedness evidenced by promissory notes or mortgages. The district court
referee did not find the Trust language to be ambiguous and therefore granted
summary judgment. The district court confirmed the referee’s findings and
upheld summary judgment in favor of Lawrence.
Mary Frances M. Price, J.D.
EDINA ESTATE AND ELDER LAW P.A.
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