Irwin Union Bank & Trust Co. v. Long
Indiana Court of Appeals
312 N.E.2d 908 (1974)
Victoria Long (plaintiff) held a $15,000 divorce judgment against her ex-husband, Philip, who was the beneficiary of his mother's trust and could, upon written notice to the trustee, withdraw four percent of the trust's value each year - a right he had never exercised. Victoria sued the trustee, Irwin Union Bank and Trust Company (defendant), to reach four percent of the trust assets to satisfy her judgment, arguing Philip's unrestricted right to withdraw meant he already had present enjoyment of those assets; the trial court agreed and let Victoria reach the funds, prompting the bank's appeal.
Whether a creditor may reach assets subject to a general power of appointment when the holder of that power has never exercised it.