Wells Fargo Bank v. Regents of University of California

The Regents of the University of California (Regents) appeal from an order of the probate court which rejected their claim to the remainder of a testamentary trust. We will reverse. We will apply the common law preference for early vesting and hold that, absent evidence of the testator’s intent to the contrary, the identity of “heirs” entitled to trust assets must be determined at the date of death of the named ancestor who predeceased the life tenant, not at the date of death of the life tenant.

Statement of Case and Facts

Harold Evans Woodworth died testate in 1971. His will was thereafter admitted to probate; in 1974 a decree of distribution was entered. According to this decree, a portion of the estate was distributed outright to the testator’s surviving spouse, Mamie Barlow Woodworth. The balance of the estate was distributed to Mamie Barlow Woodworth and the Bank of America, to be held, administered and distributed in accord with the terms of a testamentary trust established by the will of Harold Evans Woodworth. The life tenant of the trust was Mamie Barlow Woodworth. Among the trust provisions was the following: “This trust shall terminate upon the death of…