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Lackman v. McAnulty
151 A.3d 1271
Conn.
2016
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Background

  • Decedent Hugh I. Hunt executed a revocable inter vivos trust (1999) and later quitclaimed real property (6 North Street, Goshen) to himself "as trustee" in 2004; the quitclaim was recorded but no separate instrument defining trustee powers was recorded.
  • The trust was not revoked or amended to exclude the property after the quitclaim; decedent remained sole trustee and beneficiaries were his children.
  • In 2011 the decedent executed a will that specifically devised the same property to the plaintiffs (two of his children) and another child; the decedent died in 2013.
  • Executors/refusing distribution: the executrix (a trustee-beneficiary) declined to deliver the property under the will, asserting the property remained trust corpus and thus outside probate. Plaintiffs sued for declaratory relief/quiet title.
  • Trial court granted summary judgment for defendants (trust beneficiaries), holding § 47-20 did not void the quitclaim or permit the property to pass under the will; plaintiffs appealed to the Connecticut Supreme Court.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Does Conn. Gen. Stat. § 47-20 nullify a quitclaim to the grantor "as trustee" when no separate trustee-power instrument is recorded, so the property remains the grantor's and can be devised by will? § 47-20’s phrase "otherwise dispose of" includes wills; failure to record a separate instrument makes the word "trustee" a nullity (Benassi), so property stayed with decedent and passed by will. § 47-20 protects third-party transferees of a trustee’s subsequent conveyance; a will is not a present transfer to a third party and the statute does not apply here. Held for defendants: § 47-20 does not apply because it addresses protection of third-party grantees in a second conveyance; the quitclaim validly placed the property in the trust and the devise adeemed.

Key Cases Cited

  • Benassi v. Harris, 147 Conn. 451 (1960) (court applied § 47-20 to invalidate a recorded designation "as trustee" where a developer’s subsequent transfer to third parties required protection for the original grantor)
  • Socha v. Bordeau, 277 Conn. 579 (2006) (recognizes that conveying property to oneself "as trustee" places legal title in trustee and subject to trust corpus)
  • Hansen v. Norton, 172 Conn. 292 (1976) (same principle: a grantor who conveys to himself as trustee no longer holds the individual estate)
  • Gonzalez v. O & G Industries, Inc., 322 Conn. 291 (2016) (describes plenary review and statutory-construction methodology relied on in analyzing § 47-20)
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Case Details

Case Name: Lackman v. McAnulty
Court Name: Supreme Court of Connecticut
Date Published: Dec 28, 2016
Citation: 151 A.3d 1271
Docket Number: SC19668
Court Abbreviation: Conn.