TRUSTS - INTER VIVOS TRUST AS A SUBSTITUTE FOR A WILL - EFFECT OF SETTLOR'S RETENTION OF CONTROL

A executed an instrument without the formalities of a will, transferring securities to B. It was provided therein that B should hold, manage, sell, and invest according to A's written directions, and should retransfer to A if A so directed. A further reserved the right to alter the "ultimate beneficiary" and also to terminate the trust on notice to B, in which event B should retransfer to him securities and investments as well as net income otherwise payable to A at fixed intervals during A's life. On A's death, the trust was to become absolute and B thereupon had duties of investment and payment to beneficiaries. After the death of A's wife, the trust was to terminate and B was to make payment to the ultimate beneficiary.

A made only a few alterations in his life. Held, one justice dissenting, that the reservation of powers by A did not prevent the creation of a valid inter vivos trust. Central Trust Co. v. Watt, 139 Ohio St. 50, 38 N. E. (2d) 185 (1941).