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Mickey and Belle Blue are the parents of Edward and Sumner. Edward is the father of Ruth and Michael. In 2009, Belle executed and funded

  1. Mickey and Belle Blue are the parents of Edward and Sumner. Edward is the father of Ruth and Michael. In 2009, Belle executed and funded a valid, inter vivos, irrevocable trust, the Ruth Blue Trust. At the same time, Belle executed a valid will which provided that Edward is the residuary beneficiary.

Belle is the settlor of the Ruth Blue Trust and Ruth is its primary beneficiary. The trustee is empowered to advance or delay distribution of all or part of the trust estate under certain conditions. Otherwise, the trust provides that one-half of the accumulated income and principal is to be paid to Ruth at her age of 30 years, and the remainder paid to her at her age of 35 years, and the trust is to then terminate. The trust further provides that if Ruth dies before full distribution and if Ruth leaves issue, the trust is to be divided into equal shares, one for each issue, and the trustee is given discretion to distribute to each issue out of his or her separate share for his or health, education, support and maintenance. The trust provides for termination 20 years after the death of Ruth, at which time the balance in each trust share is to be paid to its respective beneficiary. If an issue of Ruth does not survive to final distribution, the remainder in that deceased issue's share is to be divided equally among the remaining trust shares, or outright to any issue whose individual share had already been fully distributed.

On the other hand, the trust provides that if Ruth dies before full distribution and does not leave issue, the trust is to terminate at Ruth's death and the remainder is to be paid over to a similar trust that Belle set up for Michael back in 2009, or otherwise to be paid directly to Michael if his trust has already been fully distributed by that time. If, however, Michael is deceased when Ruth dies leaving no issue, and Michael has left no issue, then distribution is to be made pursuant to Ruth's last will, or if Ruth dies intestate, to her heirs.

Ruth died intestate in 2015, at the age of 33. Ruth left one child, Adam, age 15 years at that time. Edward and his wife took Adam into their household to raise. Three years later, in 2018, at Adam's age of 18 years, Edward and his wife adopted Adam. Now (in November 2019) Adam has just died. The trustee never made distribution to Ruth at her age of 30 years. Both Edward and Michael claim the remaining trust estate. Make an argument for each, explaining the grounds for each. Which argument should prevail and why?

(Note: It is legal to adopt someone who is over the age of 18).

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