Articles Posted in Estate Planning

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Ruth Fulp placed her family farm in a revocable trust with trust assets going to her three children upon her death. Fulp decided to sell the farm to her son, Harold, a few years later. The proposed sale was for a low price to pay for Fulp's retirement home care and to keep the farm in the family. Ruth's daughter, Nancy, opposed the action, arguing that a bargain sale would breach Ruth's fiduciary duty to her children and deprive Nancy of her share of the trust. The trial court found that Ruth breached her fiduciary duty to the children by selling the farm at a low price. The Supreme Court reversed, holding that under the terms of the trust and the Indiana Trust Code, Ruth did not owe her children a fiduciary duty to sell the farm at less than fair market price and that Ruth did not effectively amend the trust by selling the farm. Remanded.View "Fulp v. Gilliland" on Justia Law