In re Estate of Alden v. Alden v. Alden
35 A.3d 950
Vt.2011Background
- The 1973 William C. Alden Trust (the Trust) beneficiares Nancy (trustee and beneficiary), and grantor’s five children, is to be administered by three trustees with two of three required to approve distributions; Nancy cannot participate in distributions to herself.
- William Alden died in 1980; Nancy, Julia, Todd, Cornelia, and Seth were beneficiaries; multiple remainders and distributions were governed by the Trust, including an annual accounting to beneficiaries.
- In 1982 Nancy purchased a two-thirds interest in the Williamstown property; in 1993 she disclosed this ownership to the other beneficiaries while proposing an exchange for the remaining one-third.
- A Massachusetts reformation action to cure a scrivener’s error was pursued by the Trust and involved appointing a successor co-trustee (Smith) in 2001; the Massachusetts probate appointment occurred with consent of beneficiaries, excluding Todd.
- Two challenged distributions are central: (a) the 2001 transfer of the Williamstown one-third to Nancy, and (b) use of Trust funds to pay premiums for a life-insurance policy intended to cover estate taxes from the scrivener’s error.
- The trial court and the Vermont Supreme Court held the fiduciary-duty and fraud claims were time-barred or unsupported, and affirmed summary judgment for Estate and Nancy’s estate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Nancy breached fiduciary duties by acquiring the Williamstown property. | Alden claim that Nancy’s two-thirds ownership breached loyalty. | Limitation period bars the claim; discovery rule not applicable. | Time-barred under six-year limit. |
| Whether Nancy breached by distributions to Nancy and to fund life-insurance premiums. | |||
Key Cases Cited
- Kaplan v. Morgan Stanley & Co., 186 Vt. 605 (2009 VT) (discovery rule for accrual of claims in fiduciary disputes)
- Turner v. Roman Catholic Diocese of Burlington, 186 Vt. 396 (2009 VT) (applies discovery-based accrual in complex disputes)
- Lodge at Bolton Valley Condo. Ass’n. v. Hamilton, 180 Vt. 497 (2006 VT) (applies six-year limitations period to fraud claims)