429 Mass. 215 | Mass. | 1999
The trustee of an inter vivos trust brought a complaint for instructions under G. L. c. 215, § 6, in the Probate and Family Court as to whether a testamentary power of appointment held, but not exercised, by Rachel Matthews was created in 1931, when the trust was originally created, or at a later date when certain revisions were made to the trust. The defendants are the beneficiaries of the trust.
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Richard Clark (settlor), a resident of New Jersey, created an inter vivos trust in 1931. The trust provided that it was to be governed by the laws of Massachusetts. The trust stated that, on the settlor’s death, the trust income was to be paid to his wife, Rachel Clark,
The settlor expressly reserved the right to amend the trust. Between 1931 and 1954 the trust was amended six times.
Matthews died in 1990. In her will she specifically refrained from exercising her power of appointment. Because she did not exercise her power of appointment, the trust property passed to
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The present action was brought by the trustee as a complaint for instructions as to whether the power of appointment held by Matthews at her death was created in 1931 or in 1954. It is apparent that the sole reason this suit was filed was to obtain a State court ruling which could then be used by the trustee in the pending Federal tax case under the holding of Commissioner of Revenue v. Estate of Bosch, 387 U.S. 456, 465 (1967). Although asked several times at oral argument to do so, the trustee points to no duty or issue which turns on the outcome of the present action other than estate tax liability under Federal law. This case is unlike the many cases, see, e.g., Fleet Bank v. Fleet Bank, post 1003 (1999), and cases cited, in which we reform a trust to conform to a settlor’s presumed intent to minimize Federal estate taxes. In those cases we are asked to correct a drafting error which subverts the settlor’s intent. Here the trustee does not ask us to correct a drafting error, but rather, to decide the date on which a power of appointment was created. As the amicus correctly argues in its brief, the date on which the power of appointment is deemed to have been created for Federal tax purposes, the true issue in dispute, is a matter of Federal law. See 26 C.F.R. § 20-2041-1(e) (1998). We decline to answer the question presented because the pivotal issue is governed by Federal law, and because there are no State interests or duties that would be affected by our ruling. See generally Mazzola v. Myers, 363 Mass. 625, 633 (1973). The matter is remanded to the Probate and Family Court with an order to dismiss the complaint for instructions.
So ordered.
A guardian ad litem represents the minor, unborn, and unascertained beneficiaries.
The United States submitted an amicus brief, and was allowed to participate at oral argument. In general, its position is that there is no State law issue to be decided, and that the only reason this suit was filed was to obtain a State court judgment which could then be presented as being dispositive on the central issue in the ongoing Federal tax case. In the alternative, the United States argues that the power of appointment was not created until the 1954 amendment to the trust.
Rachel Clark was married to the settlor, Richard B. Clark. After Richard Clark’s death, she remarried and, at the time of her death, was known as Rachel Matthews.
The trust was amended in 1936, 1939, 1942, 1946, 1953, and 1954.