McIlvaine v. AmSouth Bank, N.A., 581 So. 2d 454 (Ala. 1991)

Facts

AmSouth was the trustee and McIlvaine was the son of a beneficiary from the trust.  Beneficiary died on the record date of a dividend to the trust.

Procedural History

Trial court instructed AmSouth to pay the April 11 dividend to the beneficiary’s estate because beneficiary died before the close of business.

Issue(s)

Did the trial court err in relying on the fact that beneficiary died before the close of business on April 11?

Holding(s)

No.

Reasoning/Analysis

The Court found that where the dividend is payable on a date prior to death, the dividend is included in the estate, but if the dividend is payable after death, the dividend is not included in the estate.  Gene tried to argue that other courts have considered fractions of a day but the court found a fraction of the day is considered a full day.  The trial court was correct in finding Tommy was the beneficial shareholder on the record date and that as a result, his estate is entitled to the dividend.

Judgment/Outcome

The Court affirmed the judgment of the trial court.