Davis v. Rex

Virginia Davis, decedent, established an irrevocable trust that would distribute its principal to her sons, Stephen (plaintiff) and Scott, in three installments payable in the 10 years following Virginia’s death. If either son died before all three distributions were made, then his share would pass to his children. No provision was made for either son dying without issue; however, Virginia’s estate attorney, Robert Huth, testified that Virginia had instructed him to include a provision that the surviving son would inherit the deceased son’s share if the deceased son died without issue, and that the omission of that provision was draftsman’s error. Scott died without issue before the second distribution was made, leaving his estate to two charities (defendants). The trustee petitioned to determine whether Scott’s share of the remaining two distributions passed to Scott’s estate or to Stephen. Stephen argued the trust should be constructed or reformed to include a gift-over provision passing Scott’s interest to Stephen. The charities moved for summary judgment, arguing the trust should be constructed to distribute Scott’s share to his estate. The trial court granted the charities summary judgment, holding (1) reformation failed because the trust was irrevocable and there was no mistake and (2) Scott’s interest in the remaining distributions was vested and passed to his estate. Stephen appealed.