67 N.Y.S. 200 | N.Y. App. Div. | 1900
Lead Opinion
The first above-entitled action was brought for a construction of the1 9th clause of the will of William D. Thompson, deceased. The testa
By this clause, the testator disposes of apiece of property, No. 139 Broadway, New York .city, of considerable value. He gives a life estate in this property to his nephew, John B. Thompson, and upon his death lie gives the property to his executors in trust to receive the income thereof during the life of John C. Thompson, the son of John. B. Thompson, and to apply the same as follows : “ One-quarter to the use of the said John C. Thompson and one-quarter to the use of his-mother, the wife of the said John B. Thompson,” and in case of her death during the said term, then to devote the one-quarter of the income payable to her to the use of the said John C. Thompson and the other half of the said income “to apply during the whole of said term to .the usé of all the other grandnieces and grandnephews of mine in equal- shares, the issue of any deceased taking, their parents’" share.” JohnC. Thompson, the grandnephew of the testator, was-thus given either a quarter or a half of the income of this property-after the death of 'his father this is the single instance in the will in. which a grandnephew or a grandniece is mentioned by name, and this trust was to continue during the life of John C. Thompson.. There could be during that time no sale of this property. It was to be held in trust by the trustees. The. rents and profits were to-be collected by them. One-half of such income was to be paid to-John G. Thompson arid his mother. The other half of this income-the trustees were directed to apply during the whole of such term, to “ the use of all ” the other grandnieces .and grandnephews in - equal shares, and then, having in mind a contingency that might happen, viz., that one or more of these grandnephews and grandnieces should, die during the continuance of the trust, the testator directs that if "the grandniece or grandnephew so dying should leave issue that the income that would be payable to the one so-dying should be paid to his or her issue. .
That this direction to apply this income “ to the use of ” his grandnephews and grandnieces was not a vested gift of income to any par
In this connection it is important to consider the language used in giving this income. The trustees are directed to “ apply during the whole of said term to the use of all the other grandnieces and grandnephews of mine in equal shares.” Here is not a direct gift of the income to each grandniece and grandnephew living at the time the trust estate commences, but a direction to apply the income to the use of the grandniece and grandnephew during the whole term that the trust was to continue. Certainly a payment of a portion of this income to the legatees or next of kin of a grandnephew or grandniece would not be applying the income to the use of the grandnephews and grandnieces. This is an entirely different provision from the usual provision “ to pay to ” or other similar term used when an income is specifically given to a beneficiary named, and this direction had no relation to the time of the testator’s death, because the trust estate from which this income was to be received was to commence, not upon his death, but upon the death of his nephew to whom he had given a life estate in the property, and the direction to the trustees to apply one-half of the income of this property to his grandnephews and grandnieces was, by the express provisions of the will, to continue during the whole of the trust term.
A further discussion of the cases upon this question would seem to.be unnecessary. As before stated, each particular will has to be construed by a consideration of its own provisions and the'conditions existing at the time "the will was made. Giving to this provision of the will most careful consideration, we are forced to thé conclusion that it was the intention of the testator that this half of the income to be distributed among his grandnephews and grandnieces was to be distributed to such of them as were in being when the distribution was to be made1, except that in case of the death of either. grandniece or grandnephew before a final distribution leaving issue, the parent’s share- both of the income and principal was
It follows.that the judgment appealed from should be modified in conformity with the views herein expressed, and as modified affirmed, with costs to the appellants and the plaintiff to be paid out of the estate.
Van Brunt, P. J., and McLaughlin, J., concurred; Rumsey and Hatch, JJ., dissented.
Concurrence Opinion
The second above-entitled action was brought to construe the 3d clause of the will of William D. Thompson, deceased. The facts are stated in the case of these plaintiffs against these defendants, which was brought to construe another clause of the same will decided herewith. By the clause in question the testator gives to his executors the sum of $100,000 in trust to receive the rents, incomes and profits thereof, and out of the net income to apply to the use of his nephew William D. Thompson, Jr., the annual sum of $700, and “ the whole residue of such net income to apply to the use of Josephine, the wife of the said William D. Thompson, Junior, and their children, by paying the same to her for the support of herself and children during their minority; and as each child attains the age of twenty-one, he or she shall be entitled to receive one equal share of such surplus of income above seven hundred dollars per annum, the same being divided into as many equal shares as there shall be children of the said William D. Thompson, Junior, and Josephine, his wife; and one more share for the said Josephine, which she .shall be entitled to receive for her own use during her life, after all the said children shall have attained the age of twenty-one;” and “ upon the death of the longest liver of them, the said William D. Thompson, Junior, and Josephine, his wife, this trust shall cease, and the trustees shall forthwith transfer and pay over the whole of the trust property and the proceeds and increase thereof to the children of the said William D. Thompson,' Junior, and Josephine, his wife, and if any of said children shall have died leaving issue, such issue shall receive
It follows that the judgment appealed from must be modified in conformity with the views herein expressed, and as modified affirmed, with costs to the appellant and to the plaintiffs out of the fund.
Yan Brunt, B. J., and McLaughlin," J., concurred; Rumsey and Hatch, JJ., dissented.
Dissenting Opinion
These are two actions brought by the plaintiff to obtain a construction of the last will and testament of William D. Thompson,, deceased. In the first, the plaintiff asks for the construction of the 9th clause of the will, and in the secqnd, of the 3d clause. In the discussion we shall proceed in the inverse order.
The testator died on June 27, 1874, and his will was admitted to probate by the surrogate of New York county on August 10, 1874.
The testator was possessed of a considerable estate,' and the whole scheme" of thé will shows am unmistakable intent on his part to make specific disposition of his entire property. He evidently did not. intend to die intestate as to any part of his estate, and the disposition of his property is expressed with.a considerable degree of particularity.
By the 1st clause of his will he directs the payment of his debts; by the 2d he provides for the selection of bonds and stocks, amounting at par value to the sum of $500,000, and directs Ins executors to make a division. thereof into five equal parts so that the value of each share shall be $100,000. One of these shares, amounting at par value to $100,000, he bequeathed to his nephew John B. Thompson absolutely. By the .3d clause, which is the subject of the second ■ action, so far as is important to any question which the case presents, he bequeathed as follows :
' “ One other of said shares, .amounting at par to one hundred thousand dollars, I give and bequeath unto, my executors herein named, or such of them as shall qualify and act as executors of this my will, the survivors and survivor of them and their successors and assigns, upon the. trusts and to the intents and uses following — that is to say, to collect and receive the interest and dividends thereon falling due after my decease, and out of the net income to apply to the use of my nephew William D. Thompson, Junior, of Baltimore, in the State of Maryland, the annual sum of seven hundred dollars, to be reckoned from the time of my death, and payable half yearly ■ during his life; and the whole residue of such net income to apply to the use of Josephine, the wife of the said William D. Thompson, Junior, and their children, by paying the same to her for the support of herself and children during their minority; and as each child attains the age1 of twenty-one, he or she shall be entitled to receive one equal share of such surplus of income above seven .hundred dollars per annum, the same being divided into as. many equal shares as ■ there shall be children of the said William D. Thompson, Junior, and'Josephine, his wife; and one more share for the said Josephine,*469 which she shall be entitled to receive for her own use during her life, after all the said children shall have attained the age of twenty-one..
“In case of the death of the said William. D. Thompson during the life of said wife, the portion of income hereinbefore set apart ■ for him is to be added to the other shares in equal proportion.
“ In case the said Josephine shall at any time marry another husband, the right to share of said income shall thenceforth cease. In which event, or in the event of her death during the lifetime of said William D. Thompson, Junior, the share of incomes hereinbefore set apart for her shall be added to the shares of the said children in equal proportion.
“ Upon the death of the longest liver of them, the said William D. Thompson, Junior, and Josephine, his wife, this trust shall cease, and the trustees shall forthwith transfer and pay over the whole of the trust property and the proceeds and increase thereof to the children of the said William D. Thompson, Junior, and Josephine, his wife, and if any of said children shall have died leaving issue, such issue shall receive their parents’ share.”
By the 4th clause he bequeathed another of said shares to his nephew Charles B. Thompson during life, with remainder to his issue, and if he should die without issue, the remainder to be disposed of as directed by his last will and testament; in the event of issue, the net income of said share to be applied to the children or issue, the issue of a deceased child taking their parents’ share during the life of the oldest child who should be living at the date of testator’s death; upon the termination of the trust by the death of said Charles R. Thompson or of his oldest child, to distribute the principal of said share according to the laws provided in case of intestacy. By the 5th clause the testator gives and bequeaths another share to his executors in trust to apply the net interest, dividends and income to the sole use of his niece Elizabeth Y. Thompson during her life; the subsequent disposition of the income and principal of this share is the same, as to the persons who take thereunder, as is contained in the 4th clause. The 6th clause, in like manner, vests another of said shares in' trust, the interest, dividends and income therefrom to the sole and separate use of his niece Mary Rebecca Thompson, and the subsequent disposition of this share, as to the persons therein named,
“ The foregoing bequests being first fully provided for, and not otherwise, I give to my nephew John B. Thompson, for his life, my building and lot No. 139 Broadway in the City of New York; and upon his death I give and devise the same to my said executors, the survivors and survivor of them, their successors and assigns, upon trust, to receive the income thereof during the life of John C. Thompson, son of the said John B. Thompson, and apply the same as follows: One-quarter to the use of the said John C. Thompson and one-quarter to the use of his mother, the wife of the said John B. Thompson; and if she shall die or remarry within said term, then from that time to apply the entire half of said income to the use of the-said John C. Thompson and the other half to apply during the-whole of said term to the use of all the other grandnieces and grandnephews of mine in equal shares, the issue of any deceased taking their parents’ share; and upon the death of the said John C. Thompson, to sell and convey the said property in fee, and to distribute the proceeds among all my grandnieces and grandnephews in equal shares, the issue of any deceased grandnephew or grandniece taking their parents’ share.”
The other clauses of the will are not important to any question arising in this case. The 11th clause, however, contains a comprehensive residuary clause, and provides that after all the other articles and provisions of the will have been fully complied with, the remainder is' devised and bequeathed, to his nephew John B. Thompson, to have arid to hold the same forever.
But while the action only involves the present disposition of Stephen J.’s share in the income of the trust fund, nevertheless, as I view the case, it becomes essential in the determination of such question to determine, also, whether the corpus was vested in persons in being at the date of the testator’s death, or whether it was contingent and postponed until the time of the distribution of the corpus of the trust estate. If the estate was vested in persons in being at the date of the testator’s death, then we think it cannot be questioned that Stephen D. had a vested interest in and to the income which was set apart for him which would pass under his will to his mother Josephine. By the terms of the 3d clause the devise therein is to the executors named, and consequently the trust estate vested in them; but as there was no devise of any remainder to them, they simply took a vested estate, subject to the execution of the trust, which was limited to the life of the longest liver of William D. and Josephine, and upon the happeniug-of that event the only duty imposed upon them by virtue of this clause was to distribute among those then entitled to take. This was the entire estate which the trustees took (Matter of Tienken, 131 N. Y. 391), and such estate is entirely consistent with the immediate vesting of the estate in remainder at the date of the testator’s death. (Matter of Brown, 154 N. Y. 313.) The gift of the income under this 3d clause is, first, $700 per annum to William D.; then to the mother, Josephine, and their children, the same to be received by her for the support of herself and children during their minority, and by subse
In the present case there was no limitation upon the payment of the income to the children except at the termination of the trust, when they took the whole of the trust estate. The same rule was also applied in Eldridge v. Eldridge (9 Cush. 516); Dawson v. Killet (1 Brown Ch. [1st Am. ed.] 107). By express provision of our statute (1 R. S. 773, § 2) the rules governing estates and interests in land, where they are founded upon statutes or general principles of law, are to be applied so far as practicable to like estates- and interests in personal property. The rule as laid down in Sehouler on Wills (2d ed. § 562) reads: “ Any present vested interest in the income carriesprima facie a vested interest in those who shall finally take the capital, nor does delay in settling the testator’s estate and paying over prevenía legacy from vesting at the time of the testator’s death. Directions to sell at a late period prescribed are consistent with a vested remainder.” (1 Jarm. Wills, 614.)
By the terms of this clause it is clearly evident that the children of William D. and Josephine took an immediate interest in the income at the date of the testator’s death. This income was then presently payable for their benefit during minority, and vested in them by express language upon their attaining majority; and, within the foregoing authorities, the conclusion would seem to be authorized that it was the intent of the testator to vest an estate in the persons in being at the testator’s death, to whom the remainder was devised ; and such vesting of the income will be controlling of the intention to vest the estate, unless by subsequent language of the will such intention is to be deemed excluded.
It is claimed by the appellants that the subsequent language of the devise clearly indicates that the estate was contingent and not vested within the meaning of the statute. (1 R. S. 723, § 13.) The basis of-this claim rests in the fact that the gift is not present but future, and that nothing is to be received from the' corpus of the trust unless the children are alive at the time of the division.
It is at once noticeable that the clause in the will we are considering differs in essential respects from both of these cases. We have already noticed the difference between the present case and the Cammann case, and the difference between the former and the Bowditch case consists in the fact that the children who should take are named; but therein the children did not take any interest in the trust estates until the termination of the estate of the life tenant; while in the present case the children take an immediate beneficial interest which continues until finally merged by the distribution of the corpus of the estate. There is, therefore, much reason for holding that as the testator vested and intended to vest in the children of William D. and Josephine, who should be in existence at the time of the testator’s death, a beneficial interest in the income to be derived from the estate, it furnished the equivalent of the designation of the children which was found controlling in the Bowditch case. It is clearly distinguishable from the Cammann case in the fact that in that case no children were named and no beneficial interest passed until the termination of the estate of the life tenant. Here the devise is to the children of William D. and Josephine. None are named, but each was to share equally and the issue of each was to take. The devise, therefore, would appear to answer all the requirements of a devise to a class. It was the gift of an aggregate sum to a body of persons, uncertain in number at the time of the gift, to be ascertained at a future time, and all took in equal
If I am correct in the construction of this clause of the will, it follows that Stephen D. Thompson took a vested interest in the income of the trust fund and in the corpus of the estate. Such vested interest he could bequeath by . will, and having bequeathed it to'his mother, it vested his interest in her and she is presently entitled to the income, and will eventually be entitled to Stephen D.’s share in the corpus of the estate.
Much that has been already said applies with equal force' to the construction of the 9tli clause of the will, the subject of the first action. By its provisions the building and lot therein mentioned are devised to John B. Thompson, a nephew, during life, and on his demise the trust estate is vested in the executors who hold the same title as is vested in them by the 3d clause. This trust requires the payment to John O. Thompson, son of John B. and grandnephew of the testator, of one-quarter of the income during his life, one-quarter to the use of his mother during her life or until she remarry, in either of which events the whole of the one-half of the income is to be applied to the use of John C., and the other half applied during the whole term to the use of all the other .grandnieces and grandnephews in equal shares, the issue of -any deceased taking the parents’ share. This trust is to continue during the life of John O., when the executors are directed to sell and distribute the proceeds among all the grandnieces and grandnejfiiews in equal shares, the issue of any grandniece or - grandnephew having died to receive the parents’ share. There are only three items of difference between the devise in this clause of the.will and the bequest in the 3d clause; and these I regard as not being so
The intervention of the two life estates, one as to corpus and the other as to income, does not change the effect of the devise, as the addition of a life estate fastened upon the income does not detract from the vesting of the eventual estate or destroy the trust created. Nor does the fact that the direction is to sell and distribute change the rule from that which applies in the present case to the direction to distribute alone. In tlie Bowditch case there was the direction to sell real estate and distribute the proceeds, but this was not regarded as sufficient to change the rule. The class of .persons who are to take the remainder of the estate are quite different from those who take under the 3d clause; but the remainder over embraces the children of William D. and Josephine Thompson. The 3d clause does not embrace the others; but the class is as definitely named in one provision as in the other, and as the language is, with respect to the class who shall take, almost similar, there is no reason, so far as I am able to see, why a different construction should obtain.
In one view of the 9th clause, however, there is a seeming anomaly, for while the trust estate is to continue, so far as the payment of income is concerned, during the lifetime of John 0. Thompson, a grandnephew, and the corpus is only to be. distribu ted upon his demise, yet a construction which vests the estate in the remaindermen on the -death of the testator, subject to be divested and to admit of substitution of issue and after-born children, also vests in John 0. Thompson an equal share as grandnephew of the- testator. There is nothing in the language used in this clause of the will indicating an intent to prevent his participation therein, except as he is given an increased share in the income. This does not have the
There are no other questions presented by the record which seem to require discussion. The judgments should, therefore, be affirmed, with costs to all parties payable out of the estate.
Rumsey, J., concurred.
In the first above-entitled action judgment modified as directed in opinion, and as modified affirmed, with costs to the appellants and the plaintiff to be paid out of the estate.
In the second above-entitled action judgment modified as directed in opinion, and as modified affirmed, with costs to the appellant payable out of the fund.