The settlor’s revocable trust made outright gifts at the settlor’s death to relatives and step-relatives. Several of them predeceased the settlor and after his death, litigation arose about the disposition of their interests. The trial court ruled that the gifts did not vest until the settlor died and therefore the named beneficiaries and their successors in interest had no claim. The Arkansas Supreme Court reversed, holding that the interest of the beneficiary of a revocable trust “vests at the time the trust is created” and does not lapse when the beneficiary predeceases the settlor.
See Tait v. Community First Trust Company, No. 12-406, 2012 WL 6055972 (Ark. Dec. 6, 2012).
Special thanks to William LaPiana (Professor of Law, New York Law School) for bringing this case to my attention.
