FARM CREDIT BANK OF WICHITA v. WOODRING

No. 74949.

851 P.2d 532 (1993)

The FARM CREDIT BANK OF WICHITA, Wichita, Kansas, a federally chartered corporation; and Citizens Bank of Wakita, Wakita, Oklahoma, a state banking association, Appellants, v. Cecelia WOODRING s/p/a Cecelia Simons s/p/a Cecelia Simons Woodring, Trustee of the Cecelia Simons Trust dated January 24, 1972 and Charles (Gene) Simons, Trustee of the Cecelia Simons Trust dated January 24, 1972; The Cecelia Simons Trust dated January 24, 1972; John J. Simons, an individual; Rosalie Terrill, an individual; The Beneficiaries, whether contingent, vested, named, unnamed, born, or unborn of the Cecelia Simons Trust dated January 24, 1972, Appellees.

Supreme Court of Oklahoma.

April 27, 1993.


Attorney(s) appearing for the Case

David C. Butler, Enid, for appellant, Farm Credit Bank of Wichita.

Rick M. Bramlett, Medford, for appellant, Citizens Bank of Wakita.

Robert Stormont, Oklahoma City, for appellees.


KAUGER, Justice:

The issue presented is whether a cause of action brought by the creditors of a defaulting trust for the fraudulent transfer of unencumbered trust realty becomes moot when the trust is terminated by the pretrial death of the trustor. We find that because a trustee has a duty to pay valid trust debts before distributing trust property, the pretrial death of a trustor does not moot a cause of action for fraudulent...

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