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Hornung v. Stockall

Nebraska Supreme Court

894 N.W.2d 810 (2017)

Relevant factsFree

Robert McDowell's will gave his widow Betty a limited power to appoint trust principal among his descendants, their spouses, and charities, with any unappointed property to pass equally to daughters Hornung (plaintiff) and Stockall (defendant); Betty's own will instead purported to appoint all the trust property to her own separate trust, which named only Stockall and certain grandchildren, excluding Hornung entirely. After Betty's death, the trustee distributed the assets accordingly, and Hornung sued, arguing Betty's appointment exceeded her limited power since Betty's trust itself was not among Robert's specified beneficiaries; the trial court invalidated the appointment but found the trustee had acted reasonably, ordering equal redistribution to both daughters, and Stockall appealed.

IssueFree

Whether a person may exercise a limited power of appointment to allocate trust interests to beneficiaries outside the scope the power's creator specified.

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