FIRST NAT. BANK IN ORD v. Schroeder

J.H. Schroeder and the J.H. Schroeder Family Trust appeal the judgment of the district court which, in response to plaintiff’s petition in the nature of a creditor’s bill, decreed that the defendant trust was null and void.

In March of 1978 J.H. Schroeder transferred substantially all of his assets to the J.H. Schroeder Family Trust (hereinafter trust), which he created. In exchange for the property, Schroeder received a certificate of beneficial interest for 100 units, representing the “entire . .. value of the trust.”

Both before and after the creation of the trust, the First National Bank in…