Opinion
50-88-05626; CA A72865
Argued and submitted September 16, 1992
Reversed and remanded with instructions November 18, 1992 Reconsideration denied February 17, 1993 Petition for review denied April 20, 1993 ( 316 Or. 142)
Appeal from Circuit Court, Lane County.
Edwin E. Allen, Judge.
K. Patrick Neill, Eugene, argued the cause for appellants. With him on the briefs were Andrew G. Lewis and Hershner, Hunter, Moulton, Andrews Neill, Eugene.
Paul D. Clayton, Eugene, argued the cause for respondent Edward O'Reilly. With him on the brief was Anderson Clayton, Eugene.
No appearance for respondent Samantha Hale.
Before Warren, Presiding Judge, and Riggs and Edmonds, Judges.
PER CURIAM
Reversed and remanded with instructions to enter an order appointing Jill Miller as successor trustee if otherwise qualified.
Plaintiffs, the wife and daughter of the trustor, appeal an order appointing respondent O'Reilly as successor trustee of two testamentary trusts. They assign error to the probate court's holding that daughter could not serve as trustee, because she was also a beneficiary of the same trusts. We reverse.
The trustor's will named the daughter as the successor trustee. After the original trustees resigned, the probate court refused to appoint her. The sole reason given for disqualifying her was that the same person cannot be both a beneficiary and a trustee. Oregon case law is clear that a person is not disqualified from acting as a trustee simply because that person is a trust beneficiary. Morse v. Paulson, 182 Or. 111, 186 P.2d 394 (1947); United Pacific Ins. Co. v. First National Bank of Oregon, 206 F. Supp. 94 (D Or 1962).
There being no other reason in the record to refuse to appoint the daughter, we direct the trial court to appoint her as successor trustee.
Reversed and remanded with instructions to enter an order appointing Jill Miller as successor trustee if otherwise qualified.