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Case Citations [i] (Fall 2025)

handle is hein.ali/respdt0060 and id is 1 raw text is: THE AMERICAN LAW INSTITUTE Fall 2025 Citations PROPERTY 2D DONATIVE TRANSFERS DIVISION I. SOCIAL RESTRICTIONS IMPOSED UPON THE CREATION OF PROPERTY INTERESTS BY DONATIVE TRANSFERS Introductory Note Cal.App.2024. Intro. Note quot. in sup. Two co-beneficiaries of settlor's revocable living trust filed a petition against third co-beneficiary, who was trustee of the trust, following settlor's death, seeking to strike a trust amendment that beneficiaries could only sell their shares in a house owned by the trust for an amount well below market value and only to each other. The trial court granted the petition. This court affirmed, holding that a state statute that prohibited unreasonable restraints on the alienation of real property applied to testamentary instruments like settlor's trust, and settlor's amendment to the trust was unreasonable. The court cited public policy considerations described in Restatement Second of Property: Donative Transfers in reasoning that a fee-simple estate and a restraint upon its alienation could not in their nature co-exist, and that conditions restraining alienation, when repugnant to the interest created, were void. Godoy v. Linzner, 327 Cal.Rptr.3d 323, 330. PART II. DIRECT RESTRAINTS ON ALIENATION IN DONATIVE TRANSFERS CHAPTER 4. VALIDITY OF RESTRAINTS ON ALIENATION § 4.1 Validity of Disabling Restraint Cal.App.2024. Rptr's Note quot. in sup. Two co-beneficiaries of settlor's revocable living trust filed a petition against third co-beneficiary, who was trustee of the trust, following settlor's death, seeking to strike a trust amendment that beneficiaries could only sell their shares in a house owned by the trust for an amount well below market value and only to each other. The trial court granted the petition. This court affirmed, holding that a state statute that prohibited unreasonable restraints on the alienation of real property applied to testamentary instruments like settlor's trust, and settlor's amendment to the trust was unreasonable. The court noted that according to Restatement Second of Property: Donative Transfers § COPYRIGHT C2025 By THE AMERICAN LAW INSTITUTE All rights reserved Printed in the United States of America For earlier citations, see the Appendices, Supplements, or Pocket Parts, if any, that correspond to the subject matter under examination.