Loock v. Pioneer Title Insurance and Trust Co.

MARKS, J.

Polly Loock and Henning Loock, Sr., are the divorced parents of Henning Loock, Jr., who is a minor under the age of fourteen 3?'ears. The parents entered into a property settlement agreement which was approved in the decree of divorce. The custody of the minor was given to the mother. The property settlement agreement contained the following provision: “In the event of the sale of the property described herein as Parcel 1, the second party is to place Five Thousand ($5,000.00) Dollars of the proceeds thereof in some reliable bank or Trust Company, in trust, for the education of said minor child. It is agreed that disbursements may be made from said trust fund by the legally appointed guardian of said minor child, under court order.”

The sum of five thousand dollars was delivered to the Pioneer Title Insurance Company and a declaration of trust executed by it, as trustee, and Polly Loock as trustor with Henning Loock, Sr., joining therein. The minor was named as beneficiary. This instrument provided that the money be invested by the trustee; that the income and such part of the principal as might be necessary, when ordered by court, be paid to the guardian of the minor during his minority for his education; that after majority the payments be made at such times and for such purposes as ordered by court-; and further, that after it shall have been determined by order of court that the education of Henning Loock, Jr., has been completed, the unexpended portion of the

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of the trust be returned to Polly Loock.

Polly Loock was appointed guardian of the person and estate of the minor. She applied to the probate court and obtained an order permitting her to invest part of the guardianship funds in an apartment house. The order also authorized her to execute notes in part payment- of the purchase price. She demanded payment of the

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of the trust to her and upon the refusal of the trustee to deliver the funds she instituted this action to cancel the declaration of trust.

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Her action was entitled “Polly Looelt, guardian of the estate of Henning Loock, Jr.” A complaint in intervention was filed by Polly Loock and Henning Loock, Sr., which closely followed the allegations of the amended complaint. A study of these pleadings, which are most inartistically drawn, shows that the principal ground upon which the cancellation of the declaration of trust is asked is that the parents of the minor did not understand its legal effect at the time it was executed. Both pleadings pray that the trust estate be paid to the guardian of the minor.