Hutchins v. Security Trust & Savings Bank

Holding

The court held that a trust instrument providing for the amortization of encumbrances on the trust property through the periodic application of net rental income constituted a valid express trust under subdivision 2 of Civil Code section 857, and that the trial court committed reversible error by adjudicating the trust's validity without joining all necessary parties, including the trust's beneficiaries and the personal representative of a deceased settlor.