Ryan v. Ward
Maryland Court of Appeals
192 Md. 342, 64 A.2d 258 (1949)
- Written by Rose VanHofwegen, JD
Facts
John Ward created a trust that paid him income for life, with power to withdraw principal of $1,500 annually. After John’s death, the income went to John’s son Frank Ward for life, then was to go to Frank’s lineal descendants until the last of Frank’s children died. Then the trust was to terminate, with the remainder distributed to remaindermen. The value was about $32,500 when John died six months later, meaning John could have depleted the trust had he lived another 22 years. Frank died 17 years later, leaving his entire estate to his wife, Olive Ward. The couple had three surviving children. The substituted trustee, Baltimore National Bank (plaintiff), petitioned the court to construe the deed of trust, naming as parties anyone who might have an interest. John Ryan (defendant) was appointed guardian ad litem to represent the interests of the children and any future grandchildren. The parties agreed, and the court found, that the gift to the remaindermen failed because it violated the rule against perpetuities. The court invalidated those interests, but it found that some of the children’s future interests were valid and remained in trust. Ryan appealed, and Olive cross-appealed.
Rule of Law
Issue
Holding and Reasoning (Marbury, J.)
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