Kellner v. Kellner, 419 S.W.3d 541 (Tex. App.—San Antonio 2013, pet. denied).



Distribution Upon Termination


The settlor created an inter vivos trust which terminated at her death with the property passing to the executor of her estate to be disposed of according to the terms of her will.  After the settlor died, her will was admitted to probate as muniment of title.  A dispute arose between the beneficiaries named in the will and one of the trustees who claimed the property was still in the trust and should pass by intestacy.  The trial court agreed with the trustee.


The appellate court reversed.  The court explained that after the settlor died and the trust terminated, the title to the trust property immediately vested in the beneficiaries named in the settlor’s will.


Moral:  Title to trust property which passes through a will automatically vests in the beneficiaries of the will in the same manner as non-trust property.