In re Evans' Estate
274 Wis. 459, 80 N.W.2d 408 (1957)
Evans created a testamentary
trust. The beneficiaries were
"her grandchildren." The will specified that, "after each
grandchild reached the age of 30, he is to be paid his full share of the principle
sum of this bequest together with the interested that has
accumulated."
"The
grandchildren" constituted a class.
After Evans died, more
grandchildren were born. The Court was asked to determine what
restrictions there were on the class.
The Trial Court found that the
membership of the class opened up each time a new grandchild was born
until all trust assets were distributed.
The Wisconsin Supreme Court
overruled the Trial Court and determined that the number of members in a
class is fixed at the time distribution occurs.
The Wisconsin Supreme Court
found that a class can increase or
decrease in membership.
However, that membership is
fixed once distribution occurs. Otherwise it would be impossible to make
fair distributions.
In this case, when the first
grandchild turned 30, they would get 1/x of the trust assets, where 'x'
is the number of member of the class.
If the class were allowed
to increase after that time, 'x' would change.
Therefore, and grandchildren
born after the death of the settlor
are allowed to become members of the class, but grandchildren born after the first
grandchild turns 30 are not allowed to become members of the class.
This is known as the Rule
of Administrative Convenience, and it
basically says that the class
will close whenever a member may demand their share of the trust assets.