Trump Swings His Wrecking Ball at Social Security

NEIL H. BUCHANAN

Neil H. Buchanan—UF law professor and economist—dispels some common misunderstandings about the future of Social Security but explains why President Trump’s recent comments are cause for concern. Buchanan explains why, contrary to claims by reporters and politicians, Social Security is not at the brink of insolvency, but points out that if Trump were to permanently eliminate payroll taxes, that would doom the program on which tens of millions of retirees depend.

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Ex parte Berry Stephens.

Court: Supreme Court of Alabama

Docket: 1190457

Opinion Date: August 28, 2020

Judge: Mendheim

Areas of Law: Civil Procedure, Trusts & Estates

Berry Stephens petitioned the Alabama Supreme Court for a writ of mandamus to direct the Coffee Circuit Court to appoint him administrator ad litem of the estate of his mother, Louise Gennuso. The Supreme Court determined the estate's personal representative had an interest adverse to the estate. Therefore, the circuit court had a duty to appoint an administrator ad litem for the estate, but failed to do so. The Court thus granted Stephens' petition, and directed the circuit court to appoint Stephens as administrator ad litem for the estate of Gennuso.

In re National Collegiate Student Loan Trusts Litigation

Court: Delaware Court of Chancery

Docket: Consolidated C.A. No. 12111-VCS

Opinion Date: August 27, 2020

Judge: Slights

Areas of Law: Trusts & Estates

In this case involving disputes over how several related Delaware statutory trusts should be governed and how they should operate the Court of Chancery held that the Trusts have no beneficial interest in the student loans that serve as collateral for the debt instruments (Notes) and that the holders of residual beneficial interests in the Trusts (the Owners) owe certain fiduciary duties to the indenture trustee, the note holders, and the reinsurer for certain of the notes (Indenture Parties). When several constituents brought separate operational controversies in separate lawsuits the actions were consolidated. At issue were offshoots of the National Collegiate Student Loan Master Trust I (the Trusts), each of which were Delaware statutory trusts formed for the purpose of acquiring and servicing a portfolio of student loans (the Student Loans). The Trusts acquired the Student Loans with the proceeds from the issuance of Notes and then entered into an Indenture granting interest in the Student Loans to the Indenture Trustee. The Indenture made Clea that the Trusts transferred the Student Loans for the benefit of the Noteholders. The Trusts then promised to service the Student Loans. The Owner Trustee, which possessed the right to act on behalf of the Trusts, found itself in the middle of a dispute between the Owners and the Indenture Parties, who had various economic interests in the Trusts. The Court of Chancery held as set forth above.

In re Frasier Family Trust

Court: Supreme Court of Nevada

Citation: 136 Nev. Adv. Op. No. 56

Opinion Date: August 27, 2020

Judge: James W. Hardesty

Areas of Law: Trusts & Estates

The Supreme Court reversed the judgments of the district court confirming Third Fourth, and Fifth Amendments to a Survivor's Trust and denying a challenge to the settlor's capacity, holding that the district court failed to comply with the requirements of Nev. Rev. Stat. 164.015. Here, the settlor's daughter, Amy Wilson, challenged the settlor's capacity to execute amendments to the Trust in accordance with Nev. Rev. Stat. 164.015. Under the statute, the district court must hold an evidentiary hearing, make factual findings, and issue an order binding in rem on the trust and appealable to the Supreme Court. The district court entered an order denying the objections and confirming the amendments. The Supreme Court reversed, holding that the district court erred when it did not hold an evidentiary hearing or provide factual finding regarding the settlor's mental capacity prior to approving the amendments to the trusts.

Estate of Grenz

Court: North Dakota Supreme Court

Citation: 2020 ND 189

Opinion Date: August 31, 2020

Judge: Jerod E. Tufte

Areas of Law: Trusts & Estates

Kelly Grenz, as personal representative of the Estate of Leo Grenz, appealed orders and judgments partially invalidating the will of Leo Grenz. The district court invalidated a portion of the will resulting from undue influence and gave effect to a portion of a contingent distribution clause the court found was consistent with Leo Grenz’s testamentary intent. After review, the North Dakota Supreme Court found no reversible error and affirmed, concluding the court properly applied the equitable doctrine of partial invalidity.