Saturday, October 20, 2012
A Direction in a Trust to Pay the Settlor’s “legal debts” Does Not Include Debts Secured by Real or Personal Property
In a case of first impression, the Minnesota Supreme Court held that a direction in a trust agreement to pay the settlor’s “legal debts” on her death has the same meaning it has in a will. Accordingly, the clause does not require the payment of debts secured by the settlor’s real or personal property. In re Pamela Andreas Stisser Grantor Trust, 818 N.W.2d 495 (Minn. 2012).