Estate of Kohler

Martin Kohler’s will created a trust with income to be paid to his daughters, Ruth Bates and Else Campbell. The will provided that upon the death of each daughter, that daughter’s share would be paid to her issue per stirpes on their twenty-fifth birthdays or “to such issue in such manner and in such sums as my said daughters shall by their respective wills direct.” Else’s will left the residue of her estate, including her power of appointment from Kohler’s will, in four equal parts, one of which was in favor of her son, Robert Campbell, if he outlived her. Else’s will provided that if Robert did not outlive her, his share would revert to her residuary estate. Robert predeceased Else. Upon Else’s death, Fidelity Bank (defendant), trustee of the Kohler trust, distributed Else’s assets through adjudication. Fidelity did not give notice to Robert’s children (plaintiffs) and did not distribute any assets to them. Robert’s children filed a petition to reopen the case. The trial court ruled that Robert’s children did not have standing to challenge the ordered distribution. Robert’s children appealed, arguing that by using the term “such issue” in his will, Kohler intended that his daughters would be able to change the way distributions were made to their issue but would not be able to exclude any of their issue from being a beneficiary.