McMahon v. Standard Bank & Trust Co.

In this case we address complex questions involving passive trusts, living trusts and attempted testamentary dispositions. James J. McMahon alleges that his wife set up an invalid trust four years before her death. He argues that Phyllis's trust should be characterized as an invalid testamentary attempt because she retained complete control over the trust property even though she transferred title to the trustee. He asserts that the proper remedy is to return the title to her estate, completely vesting the trust property with her estate. Alternatively, he contends that the trust was passive…