201 Pa. 391 | Pa. | 1902
Opinion by
The opinion of the learned president of the orphans’ court fully vindicates the decree which he directed to be entered in each of the cases under consideration. The court below held that the income accruing to Mrs. Wylie under her father’s will, is exempt from the claim of her creditors, and we agree with the conclusion.
On the former appeal in this estate (184 Pa. 386) it was held that the daughters took a life estate, the legal title to which was placed in the trustees upon an active trust, created for the sole and separate use of each of them during life, with the limitation of the fee after their death. In the opinion of the court it is said: “ This (income) they were directed to pay in these words,4 The net annual income and profits shall be divided into eleven shares and distributed in absolute property.’ Each of the daughters was to receive one share, which was to be paid
The appellants are creditors, and they are seeking to enforce their claim against this fund on the ground that, being income that had accrued and become due and was payable at the time of the recovery of their judgments, it was, under the terms of testator’s will, the absolute property of the beneficiary, and as such liable for her debts. It is argued for the appellants that the direction in the will that the income should be “ paid in their own hands respectively upon their sole receipt therefor,” was merely what is implied in every separate trust estate, and hence was practically ineffective in controlling the estate given the beneficiaries. In other words, as we understand the counsel for the creditors, while Mrs. Wylie could not legally anticipate her share of the income from-the realty, yet her share of the accrued income in the hands of the trustee was her property, over which she had absolute power and dominion, and consequently might be subjected to the payment of her debts.
Nearly three quarters of a century ago it was decided by this court in Lancaster v. Dolan, 1 Rawle, 231, Gibson, Ch. J., delivering the opinion, that a feme covert is, in respect to her separate estate, to be deemed a feme sole only to the extent of the' power clearly given by the instrument by which the estate is settled, and has no right of disposition beyond it. This was reiterated a few years later in Thomas v. Folwell, 2 Whart. 11, wherein it is said by the same learned judge: “We therefore hold it to be the settled law of Pennsylvania that instead of having every power from which she is not negatively debarred in the conveyance she shall be deemed to have none but what is positively given or reserved to her.” In MacConnell v. Lindsay, 131 Pa. 476, the same principle is enunciated, and-Mr. Justice Clark, speaking for the court, says (p. 486):
The testator devised the residue of his estate, real, personal and mixed, to his trustees. They were to hold it in trust for the parties named in his will. He directs that for ten years after his death his trustees shall manage and control the estate, and the net income thereof shall be divided annually into eleven shares and be distributed among his children and a grandchild, but provides that “ the shares allotted as aforesaid to my said daughters, shall be for their sole and separate use, and shall be paid into their own hands respectively, upon their own sole receipt therefor.” At the expiration of the ten years he directs that his undisposed of personal estate shall be held by his trustees, and that the shares of his daughters shall be put at interest “ and only the income or profit thereof be paid to them or any of them, during their natural lives, in the manner heretofore prescribed in respect to the income from my entire estate real and personal.” The testator also directs that at the end of the ten years his real estate shall be divided into eleven shares, and that his trustees shall hold six of those shares in trust for his six daughters, “ with full power and authority to control and manage the same in their discretion, accounting and paying over to them respectively from time to time, during their respective lives, for their sole and separate use, the net proceeds, profits and income thereof, in like manner as herein-before expressed in respect to their shares in the income of my entire real and personal estate.”
It will be observed that the corpus of the estate is not given to Mrs. Wylie nor has she any control or management of it. The legal title in the entire estate is vested in the trustee, with authority to manage and control it. The income arising from the real estate (which is the subject of this litigation) is held by the trustee “ in like manner as hereinbefore expressed in respect to their shares in the income of my entire real and personal estate.” It is therefore held “ for their sole and separate use and shall be paid into their own hands respectively upon their own sole receipt therefor.” The language of the instrument creating this trust estate clearly discloses the intention
It cannot be questioned that the testator had the right to place the income of his estate in the hands'of a trustee for the use of his daughter for her life and protect it during the existence of the trust, from the claims of her creditors. That this may be done whether the fund is in the hands of a trustee or in transit to the donee, is conceded by the learned counsel for the appellants. But the contention is that the language used by the testator in the case in hand does not disclose such to be his intention, and is not sufficient to establish a trust of that character. The solution of the question, therefore, depends upon the interpretation of the instrument creating the trust, and our construction, as appears from what has been said above, does not sustain the position of the appellants.
The appeal in each case is dismissed and the decree of the court below is affirmed.