Farkas v. Williams

Albert Farkas executed four trust declarations naming his employee, Richard Williams (defendant), as beneficiary of stock held in trust, with Farkas as trustee entitled to lifetime dividends and the power to change the beneficiary, revoke the trust, or sell the trust assets and keep the proceeds; the trust would terminate automatically and revert if Williams predeceased Farkas. Farkas died intestate without a will, and his heirs-at-law (plaintiffs) argued the trusts were really testamentary dispositions, since Farkas retained near-total control during his life, and were invalid because they weren't executed with the formalities required for a will. The circuit court agreed and awarded the stock to the heirs; the appellate court affirmed.