31 S.C. 13 | S.C. | 1889
Lead Opinion
The opinion of the court w'as delivered by
The fundamental question in the case, as it seems to me, is, what estate did the trustee take under the will of Mrs. Harris ? If he took an estate in fee, then there can be no intestacy, for the testatrix devises her whole estate to the trustee and there was no room for any intestacy. If, however, the trustee took an estate only for the life of Mrs. Blount, then, as the ulterior limitations after the death of the life tenant have failed by reason of her dying without issue, and without executing the power of appointment, there is a case of intestacy, and the estate, subject to the life interest of Mrs. Blount, descended immediately upon the death of the testatrix to her heirs, and as Mrs. Blount was then her sole heir, became vested in her,
I think that under a proper construction of the will of Mrs. Harris the trustee took a fee. There can be no doubt that the testatrix intended to dispose of her entire estate, and did not intend to die intestate as to any portion thereof. This appears from the terms she has used, for she gives to the trustee uall the estate, real and personal, of which I may die seized, possessed, and entitled to.” That this language imports an intention to dispose of the fee, is shown by the case of Qanedy v. Jones, 19 S. C., 300, 301, and the authorities there cited. Next, it will be observed that she uses technical terms which are apt and appropriate to convey a fee — “to my nephew, Julius H. Walker, and Ms heirs.” And finally, we observe that there is no residuary clause in the will, disclosing even an apprehension that she had left any portion of her estate undisposed of. We have, then, a case in which the testatrix has, in express terms, declared her purpose to dispose of her entire estate, which, the authorities above cited show, means not merely the entire corpus of the property, but the whole of her interest therein, which is conceded to have been a fee; and we find her using the most apt and appropriate technical words to convey such an interest — to the trustee “and Ms heirs” — and therefore I cannot doubt that she intended to confer a fee upon the trustee, and that she executed that intention in the most approved form of law.
If this be so, then, as it seems to me, it follows inevitably that there could have been no intestacy. If the entire interest of the testatrix — the fee — passed to the trustee by the terms of the will, there could, of course, be nothing left to descend to the heirs or representatives — no intestacy.
It is said, however, that this being a devise to a trustee, who, it is conceded, takes no beneficial interest, the well settled rule is, that however ample may be the terms in which a devise to a trustee is made, he will only take such an estate as may be necessary to the complete execution of the trusts created; that a devise to a trustee and his heirs does not necessarily create in him an estate in fee, though the terms used are sufficient to create such
Now, while it may be conceded that, so far as what may be called the primary object of this trust — protecting the estate during the life of Mrs. Blount — is concerned, such object might be fully accomplished by placing an estate for the life of Mrs. Blount in the trustee, or cutting down his estate in fee to an estate pur autre vie, yet I do not see how the next object — the power of sale — could be accomplished except by leaving in the trustee an estate in fee; exactly what the testatrix had in express terms conferred upon him. For it seems to me to be well settled, both upon principle and authority, that a devise to trustees and their heirs, with power to sell, necessarily imports a fee, as they cannot convey any greatér' estate than that which they hold — they cannot sell and convey the fee unless the fee is in them. As is said by Harper, Oh., in Ex parte Gadsden, 3 Rich., at page 477 : “The power to sell relates to the whole estate, and to satisfy that the whole must remain in them.” See also Ayer v. Ritter (29 S. C., 135), where the more recent cases are collected. It is true, these cases were concerned with the question as to whether
It is said, however, that as this power of sale does not appear to have been exercised, the event shows that there was no necessity for the fee to remain in the trustee. But it must be remembered that we are now considering the question of intestacy, and must therefore look at the case as it was presented at the time of the death of Mrs. Harris, when the fee must necessarily have passed to some one, as it could not be in abeyance. If it then vested in the trustee, it could not afterwards be taken out of him except by the operation of the statute of uses, or by his own conveyance, or by some provision in the will by way of executory devise. It could never afterwards pass to the heirs as intestate property. As is said by Harper, Ch.. in Ex parte Gadsen, supra : “But if the fee be once vested in the trustees, the inheritance remains in them; unless perhaps a shifting use should be created by the terms of the deed or will.” Now, as the testatrix in this case made a devise to the trustee not only in terms amply sufficient to create a fee, but also imposed upon the trustee a duty, to the proper performance of which it was necessary for the trustee to have the fee, it would seem to follow necessarily that the fee then passed to the trustee, and the fact that he was never afterwards called upon to exercise the power of sale cannot affect the question. He might have been called upon at any moment, up to the time of Mrs. Blount’s, death to exercise the power, and the testatrix knowing this, and intending to provide for such a contingency, invested him with such an estate
But it is contended that immediately upon the death of Mrs. Harris the fee descended to and was vested in her heirs as a qualified and determinable fee, subjected to be divested by the exercise of the power of sale, and snch power not having been exercised, the fee became absolute in the heirs. Without stopping to inquire whether such an estate could arise by descent, inasmuch as the heir is supposed to take the same estate with which the ancestor was clothed, it is sufficient to say that the only authority cited (Peay v. Peay, 2 Rich. Eq., 409), was a case in which the estate was created by deed, and did not arise by descent. In that case Taylor, in consideration of twenty thousand dollars paid to him by Austin E. Peay, conveyed to a trustee in fee certain property, real estate, “in trust for the use of said Austin E. Peay, his heirs and assigns forever, and to permit the said Austin F. Peay to have and possess the same, and to enjoy the profits thereof, and in trust to convey the same to such person or persons as the said Austin E. Peay shall by deed or will, or other writing under his hand, direct and appoint.” The only question was, whether the widow of Austin E. Peay was entitled to dower in the premises, the power of appointment never having been exercised. The court held that the statute executed the use in Austin F. Peay, creating in him a qualified fee, subject to be divested by the exercise of the power of appointment, upon the principle laid down by Lord Eldon in Maundrell v. Maundrell (10 Ves., 264), “That where there is a power to A to appoint, and till he makes an appointment, or, for want of an appointment, to him and his heirs, the fee in the meantime is vested in him, as that qualified fee which is to yield the estate which may arise out of the execution of the power.” The case of Peay v. Peay is so wholly different in all its.features from the one under consideration, that I do not see how it can afford any authority for the proposition contended for. It was manifestly a futile attempt to defeat the wife’s right of dower, and the court so hold. There the manifest object of the deed was to create such an estate in Austin F. Peay as would not be subject to dower, while
If, then, the trustee was invested with a fee simple estate by the terms of the will, the next inquiry is, whether such estate has ever passed out of him. Inasmuch as Mrs. Blount died without issue and without having exercised the power of appointment, it is quite clear that this estate has not passed out of the trustee by the provisions of the third clause of the will, and therefore the real question on this branch of the case is, whether the estate in fee has been carried out of the trustee by the operation of the statute of uses. As that statute has no application to personal property (Harley v. Platts, 6 Rich., 315; Lanier v. Bronson, 21 S. C., 41), there can be no question as to that class of property. As to the real estate, it seems to me that the overwhelming weight of authority shows that the statute did not execute the use for two reasons: 1st, because a use is limited upon a use; 2nd, because certain duties were required of the trustee which rendered it necessary for the legal estate to remain in the trustee. See Ayer v. Ritter, supra, and the cases there cited. It follows, therefore, that the estate still remains in the trustee, and can only pass out of him by his own conveyance.
But as it is conceded that the trustee can take no beneficial interest under the will, equity will not permit him to hold the estate for his own benefit, but will raise what is called a resulting trust in favor of the heirs of the testatrix, and the vital question remains, who are such heirs ? Are they those who could bring themselves within that class at the time of the death of the testatrix, or are they those only who can bring themselves within such class at the time the resulting trust arises ? I do not find any authority directly in point upon this question, but it seems to me upon principle and from the analogies of decided cases, that the trust results in favor of those only who can bring themselves within the class of heirs at the time such trust arises. It is necessary, then, to inquire when such trust arose ; and it seems to me clear that it could not arise until after the death of Mrs. Blount, for up to the time of her death she might have had issue, might have died in giving birth to issue, or might have executed the power of appointment in her last moments, and,
If this resulting trust had arisen under a deed instead of a will, and the grantor were still living, the trust would have resulted to the grantor; but this right of reverter, so to speak, for strictly speaking it is not a reverter, would not be an estate in the grantor capable of being passed by devise or inheritance to the devisee or heir of the grantor, but would be a mere possibility, until the happening of the events which would give birth to the trust. When, however, the event happened which gives rise to the trust, it would become an estate in the grantor, and would then be capable of passing by devise or inheritance. Upon the same principle, it seems to me that in this case, where the resulting trust arises under a will, it must result to those who are able to bring themselves under the class of heirs of the testatrix at the time when the trust arises, and as Mrs. Walker was then the sole heir of the testatrix, the trust results in her favor and she is entitled to demand from the trustee a transfer of the whole estate to her.
It is analogous to the possibility of reverter after the termination of an estate in fee conditional, which is not an estate, but a mere possibility. It is neither a present nor a future right, but a mere possibility that a right may arise upon the happening of a contingency, which is not the subject of either devise or inheritance. This is because the grant or devise of a fee conditional passes the whole estate to the tenant in fee, leaving nothing in the grantor or devisor which can be the subject of devise or inheritance, and hence it is settled that, upon the termination of such an estate, it goes to those who can bring themselves into the class of heirs of the person creating the estate at the time when the estate terminates, and not to those who were heirs at the time of the death of such person. Adams v. Chaplin, 1 Hill Ch., 265; Deas v. Horry, 2 Hill Ch., 244; Pearse v. Killian, McMull. Eq., 231. Now, if the possibility of reverter after the termina
It only remains to notice some of the cases which seem to be mainly relied on to support a contrary view. Pulliam v. Byrd, (2 Strob. Eq., 134), was very different from the case under consideration. In that case the testator gave his whole estate to his wife for life, with power to dispose of one half thereof at her death, and the wife having died without exercising the power, the question was as to the proper distribution of the estate. The court holding that a gift to one for life witli a general power of appointment will not enlarge the life estate into a fee unless the power is exercised, determined that the will made no disposition of the remainder after the termination of the wife’s life estate, and hence such remainder became distributable as in case of intestacy. I do not see how that case has any application to the present. There the testator did not even undertake to dispose of the fee, and, of course, immediately upon his death it descended to his heirs, subject only to the life estate of the wife, and upon the termination of that estate became divisible amongst those in whom it had previously vested. Here, however, the testatrix did dispose of the fee, leaving nothing in her to descend to her. heirs. So in Rochell v. Tompkins (1 Strob. Eq., 314), the devise was to the wife for life only, “and at her death to return to and become a part of his estateand as this reversion, as it was called, was not disposed of by the will, there was clearly a case. of intestacy, so far as it was concerned, and it descended immediately to the heirs of the testator, of whom, of course, the wdfe was one.
In Seabrook v. Seabrook (10 Rich. Eq., 495), the testator devised real estate to his son for life with remainder to his issue, and in default of issue he directed that the land should “revert to his estate,” and he then devised “the lands so reverting unto
In Glover v. Adams (11 Rich. Eq., 264), followed in Shaffer v. McDuffie (14 Rich. Eq., 146), property of the wife was conveyed by marriage settlement to trustees in trust for the joint use of husband and wife during coverture, and if the husband survived, to his use during life, and after his death to such person or persons as the wife by will might appoint, and failing such appointment, to her legal heirs and representatives. The wife having died without exercising the power of appointment, leaving the husband surviving, upon his death the question was who were entitled. Held, that the remainder, after the termination of the life estates, having become vested in the heirs of the wife at the time of her death, amongst whom was the husband, his share became transmissible to his representatives. There is plainly no analogy between that case and this; for in that case the remainder, by the terms of the deed, became Vested in the heirs of the wife immediately upon her death, and there could not have been any resulting trust.
In Farrow v. Farrow (12 S. C., 168), property was devised to a trustee “in trust for the use and benefit of my son, John W.
The judgment of this court is, that the judgment of the Circuit Court be reversed, and the case remanded to that court for the purpose of carrying into effect the views herein set forth.
Dissenting Opinion
dissenting. Mrs. S. I. Harris, late of this State, died in the city of Columbia, leaving of force a last will and testament, a copy of which is found in the record, in which she devised and bequeathed her whole estate, real and personal, to her nephew, the defendant, “Julius H. Walker, and his heirs to the use of the said Julius H. Walker and his heirs, in trust, nevertheless, for her daughter, Mrs. Mary Delia Blount, during the term of her natural life,” upon certain terms and conditions, with certain powers of sale, &c., &c., to the trustee, and upon the death of Mrs. Blount the said property, or what remained unconsumed and undisposed of, was bequeathed and devised to the issue of Mrs. Blount, &c., and upon default of issue surviving her, th< n the same was devised to such person or persons, &c., as the said Mrs. Blount might appoint by her last will and testament, &c., and upon the death of Mrs. Blount, the trusts
Now, upon this state of facts, the question has arisen, who is entitled to the property mentioned in the will of Mrs. Harris ? Should it go to the estate of Mrs. Blount, the daughter who was sole heir of Mrs. Harris at her death; or should Mrs. Walker, ■the sister of Mrs. Harris, be entitled as the heir when the life estate of Mrs. Blount fell in by her death, leaving no issue and having failed to appoint? His honor, Judge Hudson, who heard this question below, holding that the trusts of the will of Mrs. Harris having failed, the property became intestate property, and Mrs. Blount being the sole heir of Mrs. Harris at her death, was entitled (Pulliam v. Byrd, 2 Strob. Eq., 185), who having died, leaving her husband and her aunt, Mrs. Caroline Walker, as her heirs, the said property should go to them according to their rights, to wit: the personal property to the husband, the plaintiff, and the real estate one-half each to the husband and Mrs. Walker. The defendants, in their appeal, deny the correctness of this decree, contending that the time for ascertaining the'heirs of Mrs. Harris, to whom the property should go as intestate property, was the death of Mrs. Blount, and that Mrs. Walker being the only surviving heir at that time, she became entitled to the whole estate.
As appropriate to the discussion of the issue here, we may state the following legal propositions, which we suppose will be conceded without question: 1st. Where a party dies leaving no last will and testament, he dies intestate as to the property, real and personal, of which he was seized and possessed at the time of his death. 2nd. Where he leaves a last will and testament, and yet fails to dispose of some of his property or of some interest or estate there
The vital question, then, in the first instance is, did Mrs. Harris die intestate as to the property in question T There is no doubt but that Mrs. Harris left a will, and yet it is equally as certain that there w7as no beneficial interest disposed of to any one, except a life estate to Mrs. Blount. There was a contingency which, if it had happened, would have accomplished a disposition of the whole estate; but it not happening, it was the same as if no such contingent disposition had been attempted, and the will should now’ be read as if such provision had not been incorporated therein. And suppose the will had been left in such condition, without the suggested disposition incorporated ; suppose the will had simply given to Mr. Walker the property in trust for the use and benefit of Mrs. Blount during her natural life and nothing more; could there be a doubt but that Mrs. Harris would have died intestate as to the entire remainder or reversion, and that the law would have cast the same upon her
It is said, however, in the argument of appellants, that Mrs. Harris did not really die intestate, or at least we so understand the argument; that, on the contrary, she disposed of her whole estate, the entire fee, to Mr. Julius II. Walker, and in such way that even it was put beyond the reach of the statute of uses. Admit this to be true, to wit, that the entire fee was given to Mr. Walker, and yet it would not follow, it seems to us, that Mrs. Harris did not die intestate, or, if so, where is the foundation of Mrs. Walker’s claim ? She certainly cannot claim under the will of her sister ; her name is not mentioned therein, nor is there any indication there that Mrs. Harris intended that any portion of her estate should go to Mrs. Walker. In fact, if Mrs. Harris did not die intestate, neither of the parties contending here is of right before us. But we think that Mrs. Harris did die intestate as to all but the life estate given to Mrs. Blount, and that the fact that her entire property was given in fee to Mr. Julius II. Walker makes no difference.
It is conceded that no beneficial interest in the property was given to Mr. Walker, and therefore that he cannot hold it for himself and enjoy it, although the statute of uses may not be able to extract it. It is conceded, too, that he must give it up to some one. It must be also conceded that he cannot yield it to any one as a legatee or devisee under the will, because the will has provided for no legatee or devisee. He must give it up, then, as intestate property, which, of course, he could not be required to do, unless Mrs. Harris died intestate. In any event, it being perfectly clear that Mr. Walker, the trustee, having no beneficial interest in any part of the estate, and no beneficial interest therein being found bequeathed or devised to any one else after the termination of the life estate of Mrs. Blount, Mrs. Harris died without a final disposition of said beneficial interest — intestate thereof — and in such case, though the statute of uses cannot be invoked as a means of passing the property to the heirs at law, it would be a reproach to the law and the courts if no way could be found by which it could he thus passed. It will be admitted, however, we suppose, that if Mrs. Harris had simply bequeathed
Now, we think that notwithstanding the entire fee in the property was given to Mr. Walker, and given in such way and by such language as would ordinarily have put it, as we have already said, beyond the reach even of the statute of uses, yet when we look at the purposes of the trust imposed upon Mr. Walker, we are warranted by well established equitable principles, applicable to such cases, to hold that his legal estate should be no larger than demanded by the trust estate under his charge, and although he may have technically a fee, yet said fee will be cut down to the proportions of the said trust estate. And inasmuch as here the trust estate put in charge of Mr. Walker was only a life estate, the complete execution of which could be accomplished by a legal life estate in him, the courts, for the protection of the interests of the heirs of Mrs. Harris, should hold that the fee to Walker has been thus cut down to a life estate, and upon the death of Mrs. Blount, the life tenant, the trust is ended, and the heirs of Mrs. Harris became entitled to the possession of the property. See Sugden on Powers, *9, section 5 ; Perry on Trusts, section 312 ; several of our own cases, to wit: Farrow v. Farrow, 12 S. C., 172; Williman v. Holmes, 4 Rich. Eq., 476. And many other cases might be cited.
The doctrine is fully stated in Perry on Trusts, from which valuable work the following is copied at section 312: “In all cases,” says Mr. Perry, “where an estate is given to one for the use of another, in such manner that the statute of uses steps in and executes the estate in the cestui que trust, the statute executes in the cestui que trust only the estate that the first donee or trustee takes, that is, the statute executes or transfers the exact estate given to the trustee. * * * While this is the rule in respect to estates which the statute executes, a very different rule applies to estates upon a trust or- use not executed by the statute.
But even if this is an erroneous view of this subject, and it be true that Mr. Julius Walker was invested with the fee, which the statute of uses, with all of its mysterious power to transfer title from one to another, could not touch, yet how7 could that determine which of the two, whether Mrs. Walker or Mrs. Blount, was the heir of Mrs. Harris, upon whom the law would cast the estate as intestate property ? Supposing the fee in Mr. Walker is of the character claimed by appellants’ counsel, we think they have clearly demonstrated that it was not executed by the statute; but we fail to see that such a result redounds to the benefit of Mrs. Walker; we fail to see that that fact fixes Mrs. Walker as the heir of Mrs. Harris ahead of Mrs. Blount.
But it is said there was a resulting trust here. ' What is a resulting trust? In brief, a resulting trust is where no express trust is created by the parties, but the law implies one from the acts of the parties, whether they were intended to create a trust or not. It arises from the operation of law. One example of a resulting trust is when a trust is declared only as to a part of an estate; and nothing is said as to the residue, the residue remaining undisposed of remained to the heir at law. So where a con
So that if there was a resulting trust here, arising either from the fact that there was a failure of appointment or failure of a particular trust, or that a trust had been declared of only a part of the estate, or that the whole beneficiary interest had not been exhausted by the trust declared, then such resulting trust arising as it does in a last will and testament, which could only take effect at the death of the testatrix, would be a resulting trust in favor of her heirs at law alone. And the question would again return, who is the heir at law ? To which question we repeat the response already made above, taken from that great law writer, Blackstone: "‘That it is him upon whom the law casts the descent immediately upon the death of the ancestor.”
Judgment reversed.