financial emergency

financial emergency
In reference to the condition frequently appearing in trusts for the benefit of the widow of a testator whereunder the trustee is authorized to withdraw funds from principal for payment to the widow in event of a "financial emergency":–not a temporary unavailability of resources to meet a need, but a situation where the widow's financial resources, including her income from the trust estate are, in the best informed judgment of the trustee in considering an urgent need of the widow, in such a state of insufficiency or unavailability that the encroachment upon principal will be immediately necessary for the widow's maintenance, comfort, and general welfare. Lyter v Vestal, 355 Mo 457, 196 SW2d 769, 2 ALR2d 1375. Widespread unemployment is an "emergency," especially during severe winter weather. 38 Am J1st Mun Corp § 450.

Ballentine's law dictionary. . 1998.

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