39 A.2d 672 | Md. | 1944
This case arose through a trustee's petition filed in the Circuit Court for Baltimore County, asking for a construction of the will of Lucy James Dun. She died in 1921, a widow with one child, a son, William James Rucker. All parties thought by the trustee to have a possible interest in the estate were brought in by summons or order of publication, and those claiming interest appeared by counsel. Testimony was taken, numerous exhibits were filed, and from the decision of the chancellor four appeals were taken, all combined in one record, and all heard together in this Court.
Mrs. Dun had been twice married. Her first husband was Major William A. Rucker. William James Rucker was the son of this marriage. Major Rucker died in 1893, and in 1899 Mrs. Rucker married her second cousin, James Dun, who died in 1908. There were no children of this marriage. The estate which Mrs. Dun left was a valuable one, consisting very largely of an interest she had in the business of R.G. Dun and Co. See Douglass v. SafeDeposit Trust Co.,
Mrs. Dun, in her will, gave various specific and pecuniary bequests, and then by the fourteenth clause provided as follows:
"14. All the rest and residue of my property of every kind, I give, devise and bequeath to the Safe Deposit and Trust Company of Baltimore, in trust to hold the same, with full power to the said Trustee, both as to this trust and as to the trust created by the second clause of this my will, to make and change investments from time to time in its discretion and to sell the whole or any part of the trust estate for any purpose which, in its discretion, may be for the best interest of the same, without obligation on the part of any purchaser to see to the application of the purchase money, and to collect the income of the said trust estate and, after deducting taxes and expenses of administration, to pay over the net income thereof in monthly or quarterly instalments, as it may deem best, to my son William James Rucker, during his life, into his own hands and not into the hands of another and without power of anticipation, or, if my said Trustee shall deem it to be for the best interest of my said son, to apply the said net income for his benefit and for the benefit of his family in its discretion, during his life; and from and after the death of my said son to set apart one-third of said trust estate and pay the net income thereof to his widow during her life or widowhood, and to hold the remaining two-thirds of said trust estate for the benefit of his child or children living at the time of his death and the descendants then living of his deceased children, per stirpes and not per capita, and to pay over and transfer the same, free of any trust, to such of them as shall attain the age of twenty-one years, the original share of each therein to be paid when such age is attained, and any addition thereto, accruing by reason of the death under such age of any beneficiary, to be paid upon such event or as soon thereafter as the person hereby entitled *525 to receive the same is of full age, and until each of them shall attain such age, to apply his or her share, original or accruing, of the net income of said trust estate to and for his or her benefit, maintenance and education, in its discretion; but, if my son shall die without children or descendants him surviving, or if all of them shall die before attaining the age of twenty-one years, then to divide, pay over and transfer the same, free of any trust, to and among the persons who may be the next of kin of my said son according to the laws of Maryland at the time of his death; and from and after the death or remarriage of the widow of my said son, to hold the one-third part of the trust estate, so as above set apart for her, for the benefit of the child or children of my said son then living and the descendants then living of his deceased children, per stirpes and not per capita, under the same limitations as are herein above set forth as to the two-thirds part of the trust estate; but if there shall be no such children or descendants then surviving, or if all of them shall die before attaining the age of twenty-one years, to divide, pay over and transfer the same, free of any trust, to and among the persons who would be the next of kin of my said son according to the laws of Maryland if he were living at the time of the death or remarriage of his widow. I authorize and empower my said Trustee to invest fifty thousand ($50,000.00) dollars of the trust estate, or so much thereof as may be requisite, in the purchase for my said son and his family of a home such as he may desire and select, the house and land so purchased to continue however as a part of the trust estate."
The son William J. Rucker, was twice married; both wives predeceased him. He was a resident of Virginia and died there December 19, 1941, testate, and without issue. W. Allan Perkins and George Pausch were made his executors. They are parties herein, and appellants in No. 4. The appellants in Nos. 5 and 6 are, respectively, a first cousin of William J. Rucker on his father's side, and the executor of a similar first cousin who has *526 died since William J. Rucker's death. The appellants in No. 7 are the widow and administratrix and only child of another first cousin on the Rucker side, who, however, predeceased William J. Rucker. The appellees are three first cousins of William J. Rucker on his mother's side. They are nieces of the testatrix, Mrs. Dun. Other facts in the case will be mentioned and discussed when the parts of this opinion to which they are pertinent are reached.
All of the questions here involved concern that part of the residuary clause of Mrs. Dun's will which disposes of one-third of the residuary estate, after the death of the testatrix's son. There is no dispute that the two-thirds, after the death of the son without leaving any children or descendants, went to the next of kin of the son at the time of his death, and we are advised that it has already been so distributed. The remaining one-third, however, is set apart under separate provisions, and it is in respect to this one-third that the parties have conflicting theories.
It is contended by the Rucker executors that the two gifts over, each to take effect from and after the death or remarriage of the son's widow, violate the rule against perpetuities. This rule is stated by Gray on Perpetuities, 4th Edition, page 191, paragraph 201, as follows: "No interest is good unless it must vest, if at all, not later than 21 years after some life in being at the creation of the interest." The decisions of this Court follow this rule. It is stated in Graham v. Whitridge,
The contention of the Rucker executors is that the widow of the son of the testatrix might have been born after the death of the testatrix, and might have lived longer than twenty-one years and the period allowed for gestation after the death of the son. Therefore, the gift over to the children and descendants, and the gift over to the next of kin in the absence of children and descendants are both void, because both might fail to vest within the required period. This view, which was adopted by the chancellor, seems to be correct, if we read the residuary clause as it is written. It is, however, strenuously resisted for various reasons by other parties to the case. We will take up their contentions in the order which seems most logical. Before doing so, however, it may be well to restate the general rules of construction of wills, so that they may be borne in mind. The whole intention of the testatrix is to be ascertained from the entire will, as well as any specific intention shown in the particular clause under discussion. This intention is to be gathered not only from the will, but from pertinent circumstances surrounding the testatrix *528 at the time of making the will. In cases where it is claimed that the rule against perpetuities is violated, the Court first decides what the will means, and then determines whether the will so interpreted violates the rule. There is a presumption against intestacy, especially where there is a residuary clause, indicating that the testatrix intended to dispose of her entire estate. If there are two constructions, either of which can be adopted without straining the words of the will, the Court will adopt that one which disposes of the entire estate, rather than one which results in a total or partial intestacy. But the Court will not write a new will, nor attempt to surmise what the testatrix would have done had she thought of the contingency which has arisen. Nor will the Court substitute its own judgment for hers, as to what she should have done. It will interpret what she has said, in the light of the circumstances which have arisen, and determine, from the will itself, what she meant.
The general intention of the residuary clause before us seems to be to provide for the son of the testatrix, his widow, his descendants and his next of kin. The entire clause revolves around the son. No question arises, or could arise, as to the estate given to the son's widow during her unmarried life. It vests within the required period. The question arises as to the two subsequent bequests of the one-third taking effect "from and after the death or remarriage of the widow." The first of these directs the one-third residuary estate to be held for the benefit of the child or children of the son "then living," and the descendants "then living," of his deceased children per stirpes and not per capita. It has been suggested in connection with this bequest that it comes within the rule that a contingent estate to a class vests immediately upon the birth of a member of that class, and becomes vested as to him, with the possibility of his being divested as to part by the subsequent birth of other members of the class. The latest applications of this rule are found in the cases of Bishop v. *529 Horney,
It is contended by the appellants in all four appeals that neither the bequest to the children and descendants, nor that to the next of kin are void because the word *530
"widow" in the will does not mean widow in the usually accepted sense of a surviving wife, but means Sally Woods who was engaged to the son at the time the will was made on April 7, 1910, and who married him twenty-one days later. She was in being at the death of the testatrix, dying on December 20, 1932. The surrounding circumstances which we are asked to consider in connection with this contention are that the will was made at the time when Mrs. Dun had come to Baltimore to take part in the festivities in connection with her son's approaching marriage to Sally Woods; that she undoubtedly had no other thought except that Sally Woods would ultimately become her son's wife, and might become his widow; that she did not name Sally Woods because of a natural delicacy under the circumstances, but that she meant Sally Woods when she used the word "widow." Maryland cases and cases from other jurisdictions are cited in support of this contention. The Maryland case principally relied on is Lavenderv. Rosenheim,
It is also contended that by reason of certain proceedings in this case and a clause in the son's will the *532 executors of the son are estopped from making any claim that any part of the will is invalid, and also that in these proceedings there has been a prior judicial construction of the will. An examination of the record, however, does not sustain these contentions. On October 26, 1921, the trustee filed a petition in the Circuit Court for Baltimore County in which it said that the son and his wife (then Sally Woods Rucker) were dissatisfied with an authorization in the residuary clause of the will to the trustee to invest $50,000 of the trust estate for the purchase of a home for the son and his family. The trustee further pointed out that if the son and his wife should institute proceedings attacking the validity of the will, it would result in a considerable expense to the estate, and that the trustee had agreed with the son and his wife to pay them $50,000 absolutely in place of expending the said sum for a home, and thus settle all questions connected with a contest of the will. With this petition was filed a copy of an agreement dated the same day in which the son and his wife agree that if this payment is made they "hereby ratify the said last will and testament and agree to abide by its terms." This compromise settlement was ratified by the Court. Subsequently, in 1923, the trustee filed a bill of complaint which was the initiation of the present proceedings. The purpose of this bill of complaint was to ask the Court to assume full jurisdiction of the trust and to authorize the trustee to continue to hold the undivided one-sixth interest in R.G. Dun and Co. subject to an agreement which had been made in May, 1912, and to determine the rights of the son and his wife in the revenue and profits from the business of R.G. Dun and Co. The Court was asked to consolidate the petition of October 26, 1921, already referred to, with this case. The son and his wife, Sally Woods Rucker, filed an answer in which they claimed that all of the profits received from R.G. Dun and Co. constituted income of the trust estate created by the residuary clause of Mrs. Dun's will, "and under the terms of said will are all payable to the Defendant, *533 William James Rucker, during his life and after his death, one-third thereof to the Defendant's wife, Sally Woods Rucker, during her life or widowhood." The case was immediately submitted, and the Court signed a decree, consolidating the two cases, assuming jurisdiction of the trust, holding that all the net income, including the profits from the business of R.G. Dun and Co., belonged to the son "and that from and after the death of William James Rucker, his wife is entitled to receive from said trustee, during her life or widowhood, one-third of said net income." It is obvious that these two proceedings were taken, the first to approve a compromise settlement, and the second to determine whether certain revenue was income or corpus. In the first proceeding the son agreed not to attack the validity of the will, but said nothing about its construction. In the second, he and his wife said that she would be entitled to one-third of the income after his death, and the Court so decreed. At that time, Sally Woods was the son's wife and the decree of the Court was not construing the will with respect to a situation which might arise in case Sally Woods should not be the son's widow. On the contrary, it was assuming from the fact that she was then his wife that as his widow she would be entitled to the income from one-third of the residue of the estate, which is something no one now disputes. It would be a very strained interpretation of the decree to assume that the Court decided that Sally Woods would be entitled to this income at the son's death, even if, by reason of divorce, she might not then be his widow. The Court did not have before it all the persons who might be entitled to dispute such construction, such as someone else who might really become the son's widow. We cannot assume that any such ideas were then in the minds of the Court or of the parties to the case. There was not, nor could there be any judicial interpretation of the will extending any farther than the situation as it then existed. There is nothing in the papers filed by the son which estops his executors from contending now for a proper construction and interpretation of the will. *534
In the will of William James Rucker, he states: "I have no relations closer in degree than first cousins; several of these I am only slightly acquainted with, several of them have substantial means of their own. Under the will of my mother, Mrs. Lucy James Rucker, which was admitted to probate in the Orphans' Court of Baltimore County, Maryland, on the 31st day of August, 1921, all of these cousins are provided for; hence I have not felt it proper to include in this my will or in the trust agreement of even date herewith any of my relatives other than those named, for all of whom I have a personal and affectionate regard." It is claimed that by this statement, he shows that he thought his mother's will was wholly valid, and that as a result some of the cousins who might have benefited thereby suffered by not being included in his will. But he probably had in mind the two-thirds part of the residue as well as the one-third, and under the two-thirds clause his first cousins got twice as much as they would have gotten under the one-third, were it valid. In any event, his construction of his mother's will, or his belief in its validity, would not estop his executors from now making the contention they do.
Another ingenious contention is made in an effort to prevent intestacy, and to make valid the limitations to the heirs of the son. In considering this we must bear in mind that the Court must not adopt strained constructions in order to avoid intestacy, but must construe the words of the will in their natural and usual meaning. The will directs the trustee, after the death of the son, to set apart one-third for the widow, and to hold the remaining two-thirds for the benefit of his child or children "living at the time of his death," and the descendants "then living" of his deceased children, per stirpes and not per capita, and to pay over and transfer the same free of any trust to such of them as shall have attained the age of 21 years, the original share of each therein to be paid when such age is attained, and any addition thereto, accruing by reason of the death under *535 such age of any beneficiary, to be paid upon such event or as soon thereafter as the person hereby entitled to receive the same is of full age, and until each of them shall attain such age, to apply his or her share, original or accruing, of the net income of said trust estate, to and for his or her benefit, maintenance and education, in its discretion; but if the son shall die without children or descendants, him surviving, or if all of them shall die before the age of 21 years, then to divide, pay over and transfer the same, free of any trust, to and among the persons who may be the next of kin of the son, "according to the laws of Maryland at the time of his death."
When the testatrix comes to the one-third, which is set apart for the widow, she gives this "from and after the death or remarriage of the widow of my said son" to the trustee to hold for the benefit of the child or children of the son "then living," and the descendants "then living" of his deceased children, per stirpes and not per capita, "under the same limitations as are herein above set forth as to the two-thirds part of the trust estate." The will then directs the trustee, if there are no such children or descendants "then surviving," or if all of them shall die before attaining the age of 21 years, to divide, pay over and transfer the estate, free of any trust to and among the persons who would be the next of kin of the son, according to the laws of Maryland, "if he were living at the time of the death or remarriage of his widow." The contention is made that the words, "under the same limitations," contained in the part of the will referring to the one-third, constitute a bequest to the next of kin by referential words, and that therefore the next of kin are to take the one-third at the death of the son without children or descendants, rather than at the death or remarriage of the widow in the absence of children or descendants of the son. In support of this, a number of cases are cited, among them Elder v. Lantz,
Another contention stresses the idea which is undoubtedly correct that Mrs. Dun intended to give all of the residuary estate to the next of kin of her son in the event of failure of his issue. Such a gift was to come through two different and distinct channels; the two-thirds was to come through her son and the one-third through the widow of her son. The next of kin were always to take, but after different contingencies. It is therefore suggested that in order to avoid intestacy the Court should consider this general intention controlling, and instead of holding the gift to the next of kin of the one-third void, should treat it, under the circumstances which occurred, as passing at the death of the son without leaving a widow or issue. In other words, the Court is asked to hold that all of the provisions as to the one-third depended upon the existence of a widow and, if there were no widow, then the provisions as to the two-thirds *537
apply. In support of this contention the case of Goldsborough v.Martin,
We therefore hold that the bequests of the one-third of the residue of the estate, after the death or remarriage of the widow, are too remote and are void for that reason, and that there is a partial intestacy as to this one-third. When there is an intestacy, the estate goes to the heirs, or if it is personal estate, as this is, to the personal representatives of the testatrix. But a very important question immediately arises; that is, what is the punctum temporis at which such personal representatives are to be determined. The Rucker executors contend it is at the time of the death of the testatrix, at which time the son was her only heir, and therefore it belongs to his estate. The three nieces contend that it is the date of the death of the son without leaving a widow, in which case they are the only heirs. The chancellor decided in favor of the three nieces. The argument *538
of the executors is that the testatrix left her residuary estate to trustees for the benefit of the son for life; at his death, one-third to the trustees for the benefit of his widow for her unmarried life; that both of these bequests are valid, but the subsequent bequests are void ab initio, and, therefore, there came into being at the death of the testatrix, a reversion in the son. The argument of the nieces is that the whole legal estate was in the trustees; that it was an absolute estate determinable only at the death of the son, without a widow, and without issue, at which time the intestacy first arose. As a result, they contend that there remained in the son, not a reversion, but only a possibility of a reverter, which devolves from heir to heir of the original owner, until the contingency happens which creates an actual reversion. They further contend that the son as the intermediate heir had no power to change the course of descent, and appropriate it to his own use, because he did not have the legal estate and could not transmit the estate he had. For this last contention they depend largely upon three Maryland cases:Conner v. Waring,
The case of Conner v. Waring is the second of two cases involving the wills of Charles and Elizabeth Torrance. The first of these is Torrance v. Torrance,
The case of Shirk v. Lee, decided in the Circuit Court of Appeals, 4th Circuit, in 1924,
In 1908, by Chapter 84 of the Acts of Assembly of that year, it was provided that "all rights and possibilities of reverter shall be subject to be disposed of, transferred *542 and passed" by will. That provision of the statute is now Section 332 of Article 93, of Flack's Annotated Code, 1939. This Act was not, of course, before the Circuit Court of Appeals in Shirk v.Lee, supra, because the will in question was executed long prior to the enactment. This Act permits William James Rucker to devise a possibility of a reverter. Section 1 of Article 46 of Flack's Annotated Code, as enacted by Chapter 325 of the Acts of 1916, provides that lands, tenements and hereditaments in cases of intestacy shall descend to those persons who according to the laws of the State, relating to personal property, would be the distributees in such cases. This changes the old doctrine ofpossessio fratris. These statutes abolish the common law rules held applicable in Conner v. Waring. If there is a possibility of reverter, even in real estate, with which we are not concerned here, it descends to the heirs. If in personal property, it descends to the personal representatives. There is no common law of seisin making the stock. The descent is by the Maryland law of inheritance and distribution. William James Rucker, not as the intermediate tenant, but as an owner of a possibility of reversion, could convey such interest in the estate herein by his will.
But in this case, William James Rucker did not have a possibility of reversion; he had an absolute and indefeasible reversion from the time of his mother's death. There is a distinct difference between the estate considered in Conner v.Waring and Mrs. Dun's estate which is now before us. In Connerv. Waring there was a devise in trust to Louisa Torrance for her natural life. After the death of Louisa there was an absolute devise to her children. These devises of a life estate in trust and a fee simple estate over to the children, were good. The void devise was the clause which provided for a fee simple estate over to the survivors of the children of the testatrix in the event of the decease of Louisa without leaving any child or children or descendants. On this will Judge Alvey, delivering the opinion of the Court in Conner v. Waring, *543
said the trustees had the legal fee "but it was a determinable fee, and, consequently, as soon as the death of the equitable life tenant occurred, without having had issue to take the remainder, that event defeated and determined the estate in law conferred upon the trustees, and became thence vested, by way of reverter, in the heirs-at-law of the original donor of the power." In the case before us we have a legal estate vested in the trustee for the life of the son, and then, as to the one-third, for the unmarried life of the widow. These were all the bequests that were good. They could not, in any event, extend beyond the unmarried life of the widow. The estate was not a fee, determinable on the happening of a contingency which might divest the fee simple title of the trustee and put it in other persons as was the case of Conner v. Waring. The estates, in the case before us, after the determination of the two life estates, were void ab initio, because of the violation of the rule against perpetuities. The trustee, therefore, did not hold a determinable fee, or since we are speaking of personal property, it did not hold an absolute legal estate, subject to be divested. It held absolute legal title to the estate during the two beneficial life estates, after which there was no further valid grant, and therefore, there existed in the heir of the testatrix, from her death, not a possibility of a reverter, but an absolute reversion. The classification of reversions is set out inRestatement of the Law, Property, Part I, paragraph 154 e, where it is stated: "Sometimes reversionary interests are indefeasibly vested, as, for example, when A having complete property in a thing, transfers an interest therein, measured in duration by the life of the transferee. Sometimes a reversionary interest is defeasibly vested, as for example, when a transferor who has an estate in fee simple absolute, transfers an estate for life, plus a remainder in fee simple absolute, subject to a condition precedent * * *. Sometimes a reversionary interest is subject to a condition precedent, as for example when the created interests can exhaust the full interest had *544
by the transferor prior to his transfer, but upon the occurrence of a stipulated event, will sooner end, leaving a balance to be enjoyed by the original transferor. Reversionary interests of the first two types are designated reversions, while reversionary interests of the third type are designated possibilities of reverter." The reversion in the present case is according to the above definitions "indefeasibly vested." We, therefore, have here an absolute estate in the trustee for the duration of the life of the son and for the duration of the unmarried life of the widow, and then an indefeasibly vested reversion in the heir of the testatrix at the time of her death. That is the effect of an intestacy caused by a void bequest. In Heald v. Heald,
These executors, who are administering this estate in Virginia, are authorized to appear in these proceedings by the provision of Flack's Annotated Code, 1939, Article 16, ยง 147. Courts of Equity have power to make complete distribution, and ordinarily will not direct the estate to be transferred to another Court for that purpose. Myers v. Forbes,
Decree reversed and case remanded for the passage of a newdecree in conformity with this opinion. Costs, above and below,to be paid out of the estate. *546