Opinion ID: 1760309
Heading Depth: 3
Heading Rank: 4

Heading: Interests of the Remaindermen

Text: ¶ 25. The parties agree that the trusts' two remaindermen, Virginia Tate and William Bardin, have vested remainders. The trusts provide that First National Bank shall have full and complete authority to expend all or any part of the income or corpus of said trust property for the benefit of myself and my said son. (emphasis added). Therefore, the interests of Ms. Tate and Mr. Bardin are vested remainders subject to complete defeasance in the event that all of the trust assets are expended to satisfy the interest of Lorance. Put another way, Lorance has a beneficial interest in all of the trust assets. Accordingly, we hold that all of the trust assets should be subject to the Slighs' claim, thereby defeating the interests of the two remaindermen. ¶ 26. In Deposit Guaranty Nat'l Bank v. Walter E. Heller & Co., 204 So.2d 856 (Miss. 1967), the settlor of the trust created a lifetime beneficial interest in himself with a single remainderman. As a matter of public policy, we held the trust's spendthrift provisions invalid as against the claim of the donor/beneficiary's creditor, ruling that the remainderman would take subject to the claim of the creditor. Deposit Guaranty Nat'l Bank, 204 So.2d at 862-63. Likewise, the Slighs' claim shall take priority over the interests of the two remaindermen.