Head v. Wachovia Bank N.A.

A trust beneficiary presented no grounds for setting aside an order enforcing a consent agreement between the trust and its 53 beneficiaries.

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Dixon R. Head, Jr., appeals the trial court’s order denying his motions to set aside and correct clerical errors in an order enforcing a settlement agreement between Head and trust administrator Wachovia Bank, N.A. Because we conclude that Head presented no grounds to set aside or correct clerical errors in that order, we affirm the trial court’s denial of his motions. Wachovia filed a petition for construction, directions, and declaratory judgment against 53 beneficiaries of a trust administered by the bank. The trust terms were established in 1948 by the will of James D. Robinson, former president and chairman of the board of The First National Bank of Atlanta, and directed the trustee to pay out the net quarterly income to the trust’s beneficiaries and encroach on the principal if necessary. The trust further instructed that only dividends were to be treated as distributable income, but further provided that the trustee was authorized to apportion expenditures between principal and income. Because Coca Cola Company stock constitutes a large percentage of the trust principal, and its dividend payments over the past 50 years have not increased commensurate with its market value, Wachovia sought guidance as to its ability to allocate a percentage of capital appreciation to income that could then be paid out to the beneficiaries. This action would increase the annual payout from 1.5 percent to 3.5 percent, and allow Wachovia to rebalance the trust portfolio, which is 95 percent equity investments and 5 percent fixed income investments.

In paragraph 16 of its petition, Wachovia also stated that it “has properly administered the Trust since its inception, and has made all payments or distributions in accordance with the Will and has held, invested, reinvested and accumulated the Trust res in accordance with the Will.” In addition to a declaration of its rights and a decree for construction, Wachovia sought a determination that the trust had been properly administered to date.

Head v. Wachovia Bank N.A.

A trust beneficiary presented no grounds for setting aside an order enforcing a consent agreement between the trust and its 53 beneficiaries.

Share with Email

Thank you for sharing!

Trending Stories

More From ALM

Subscribe to Daily Report