Farmers and Merchants Trust v. Kennedy CA2/6

FACTS

The Isabel Geis Testamentary Trust (hereafter Trust) was established in 1972. Isabel had a daughter, Victoria. Victoria was married to and divorced from Edwin Pauley. Victoria and Edwin had three children, J., Anne, and E. J. and E. suffer from developmental disabilities.1 Victoria was a beneficiary of the Trust while she lived. She is now deceased. J. has a separate trust. Anne and E. are beneficiaries of separate subtrusts created under the Trust. This litigation involves E.’s subtrust. The income from the subtrusts is paid to Anne and E. during their lives. If Anne or E. die without issue, the deceased sister’s share will be held in trust for the benefit of the surviving sister. If both sisters die without issue, the remaining corpus will be paid to named charities free of the Trust. The original trustee was the Bank of California. By virtue of a merger, Union Bank succeeded as trustee. The Trust provides that when Anne or E. attain 35 years of age, they may, by written demand to the trustee, require the distribution of one-third of their entire share. At the time E. attained 35 years of age, she was under a conservatorship. Sharon Kennedy is the conservator of E.’s…