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Case Citations [1] (July 2020 - April 2021)

handle is hein.ali/resect1481 and id is 1 raw text is: TRUSTS 2D
CHAPTER 1. DEFINITIONS AND DISTINCTIONS
TOPIC 1. DEFINITIONS
§ 1. Scope of the Restatement
I11.App.2019. Cit. in case cit. in sup. Taxpayer who had purchased an airplane and paid a corresponding
general use tax in connection with that purchase sued the state department of revenue after he transferred
the airplane to himself as trustee of his revocable trust, seeking a declaration that he was not required to
pay a second use tax on the airplane in connection with that transfer under the Aircraft Use Tax Law.
The trial court granted summary judgment for the department. Affirming, this court held that taxpayer's
change of the ownership of the airplane from himself individually to himself as trustee of his revocable
trust was a taxable event. The court cited the Restatement Second of Trusts in reasoning that, while
taxpayer both individually and as trustee of his revocable trust enjoyed the privilege to exercise a right
over the airplane incidental to ownership of that airplane, under Illinois law, a natural individual was
legally different than a trustee of a trust and clearly different for purposes of the statute. Shakman v.
Department of Revenue, 146 N.E.3d 640, 645.
§ 2. Definition of Trust
U.S.2020. Cit. in ftn. to diss. op. Beneficiaries of defined-benefit retirement plan brought a putative class
action under the Employee Retirement Income Security Act against former employer, alleging that
defendant violated its fiduciary duties of prudence and loyalty by mismanaging the plan. The district
court granted defendant's motion to dismiss. The court of appeals affirmed. This court affirmed, holding
that plaintiffs lacked standing under Article III to bring suit, because they continued to receive their
legally and contractually entitled monthly retirement payments in full and suffered no other injuries
granting them standing. The dissent argued that plaintiffs had Article III standing or could otherwise
bring suit as representatives of the plan, because, among other things, the plan was a form of trust as
defined by Restatement Second of Trusts § 2 and thus provided plaintiffs an equitable interest in the
plan's assets, and defendant's alleged mismanagement of those assets constituted a concrete injury-in-
fact. Thole v. U.S. Bank N.A., 140 S.Ct. 1615, 1625.
D.D.C.2020. Quot. in sup. Purchasers of insurance policies under a group health-insurance program
brought a putative class action against program administrator, its subsidiary, and grantor trust organized
by administrator, alleging that defendants breached fiduciary duties owed to plaintiffs by failing to
inform them of royalty payments that defendants withheld from insurer out of the premiums plaintiffs
paid, because the royalty payments were in fact illegal commissions evidencing that defendants engaged
in self-dealing. This court granted defendants' motion to dismiss, holding that defendants did not owe
plaintiffs any fiduciary duties. The court explained that, although certain relationships under
Restatement Second of Trusts § 2 could automatically trigger fiduciary duties, plaintiffs failed to allege
that the parties had a trustee-beneficiary relationship or escrow-depositor relationship that would give
rise to such duties. Krukas v. AARP, Inc., 458 F.Supp.3d 1, 7.
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