902 A.2d 852 (Me. 2006)
In 1998 or 1999, George Fournier asked a couple who were friends with him if they would hold some money for him.1 They agreed, and Fournier delivered two boxes, each containing $200,000 cash, to their home.2 Fournier asked them to hold the $400,000 in secret until his death and then deliver it to his sister, Faustina Fogarty, explaining that she needed it more than his other sister, Juanita Flanigan.3
Fournier told both Flanigan and her daughter that his friend was holding money for him.4 Fournier died in 2005, survived by Fogarty and Flanigan.5 Under his will, Fogarty was appointed the personal representative of his estate.6 Upon learning of Fournier's death, Fogarty and her son met privately with the couple, and the husband gave Fogarty the money.7
Fogarty petitioned the Aroostook County Probate Court for a declaratory judgment to establish that during his lifetime Fournier had created an oral trust for her benefit. Following a hearing, the probate court denied her petition. Fogarty appealed the judgment to the Supreme Judicial Court of Maine.8
Whether the undisputed evidence compelled a finding that Fournier created an oral trust for Fogarty's benefit?9
A trust may be created by transfer of property to another person as trustee during the settlor's lifetime.10 A trust is created only if the settlor has capacity to create a trust, the settlor indicates an intention to create the trust, the trust has a definite beneficiary, the trustee has duties to perform, and the same person is not the sole trustee and sole beneficiary.11 Although a trust need not be in writing, the creation of an oral trust must be established by clear and convincing evidence.12
Yes. The established facts demonstrate that Fournier had the capacity to create the trust as he delivered the cash and gave specific instructions.13
He indicated an intention to create the trust by directing the couple to hold the money secretly until his death and then deliver it to Fogarty.14
The trust has a definite beneficiary in Fogarty.15
The couple had duties to perform in holding and delivering the money.16
The testimony provides clear and convincing evidence satisfying all elements of 18-B M.R.S. § 402(1) and § 407.17
The undisputed evidence compelled a finding that Fournier created an oral trust for Fogarty's benefit.18