Chatard v. Oveross

Opinion

WILLHITE, J.

INTRODUCTION

This appeal raises the issue whether the beneficiary of a spendthrift trust who also acts as trustee and commits a breach of trust causing financial harm to the trust can have her interest in the trust estate impounded to satisfy a claim arising from her misfeasance. Because the damage resulting from the trustee’s breach of her fiduciary duty will otherwise be sustained by the beneficiaries, we hold that the trustee’s interest can be reached to satisfy the claim notwithstanding the existence of the spendthrift provision. We therefore affirm the trial court’s…