Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, July 25, 2014

Article Review: Diversity Jurisdiction and Trusts

TrustTurney P. Berry has written a review on Jonathan J. Ossip’s article entitled, Diversity Jurisdiction and Trusts. Provided below is an introduction to the review:

Surely we’ve all heard this maxim, and in a forthcoming article, Jonathan J. Ossip reminds us that when federal diversity for trusts is concerned, the key word is “you.” In Navarro Savings Association v. Lee, the federal district court dismissed an action filed by the trustees of a Massachusetts business trust on their own behalf, holding that a business trust is a citizen of every state where its shareholders reside (which, on the facts, destroyed diversity). The U.S. Supreme Court reversed and held that the trustees were the real parties to the controversy because as trustees, they had exclusive power over the trust assets, as if they were sole owners of the trust assets individually. Subsequent to Navarro, the article argues, the federal courts have largely made a hash out of determining trust citizenship, particularly that of business trusts. To bring some order to the jurisprudence, the author advocates applying different rules to traditional estate planning or gift trusts and business trusts.

For the rest of the review, see Turney P. Berry, Review of Reviews: "Diversity Jurisdiction and Trusts” N.Y.U. L. Rev. (forthcoming December 2014), Wealth Management, July 14, 2014. 

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.


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