47 Cal. App. 2d 787 | Cal. Ct. App. | 1941
This is an appeal upon the judgment roll from a declaratory judgment adjudicating that under the terms of a trust the wife during her lifetime had been vested with, and had exercised a testamentary power of appointment to, one-half of the corpus of the trust, and that accordingly the property did not become a part of the husband’s estate. The appellants are the residuary legatees of the husband. The only question involved is whether the terms of the trust are adequate to sustain the holding of the trial court.
The facts which need to be stated here are these: After thirty-two years of married life the wife, Belle Wright, instituted a divorce action against her husband, Reason Wright. A few days thereafter the husband delivered to her, for her signature, an agreement by the terms of which she was to dismiss the divorce áction and accept the financial pro
The controversy before us turns upon the construction which is to be given to the fourth paragraph of the declaration of trust. We now set forth its language with the understanding, however, that what appears in brackets has been inserted by us merely for our purposes in discussing the paragraph hereafter. With these additions the paragraph reads as follows:
“Fourth: [1] Upon the death of said Belle Wright this trust shall terminate as to one-half of the then corpus of the trust property, in the event Douglas Baird Wright, an unadopted boy, who has for several years past resided with Reason Wright and Belle Wright, is living at said time and at said time has not attained the age of twenty-five years, and the said Trustee shall convey, deliver and pay over said one-half of said corpus unto those persons who shall be appointed by the last will and Testament of said Belle Wright to receive the same, but in the event she fails to make testamentary appointments with respect to said property or dies intestate, then the said one-half of said corpus shall be conveyed, delivered and paid over unto her heirs at law according to the jiresent statute of succession of the State of California. [2] In the event said Douglas Baird Wright has not at the time of the death of said Belle Wright attained the*790 age of twenty-five years, the other one-half of said corpus shall remain in further trust until said Douglas Baird Wright attains said age, and all the net income therefrom shall be paid unto him, in convenient monthly or quarterly installments, and upon his death or upon his attaining the age of twenty-five years, whichever of said events is first to happen, this trust as to said one-half shall terminate and the said Trustee shall convey, deliver and pay over the same unto him, if he survives such termination, otherwise unto his heirs at law in accordance with the present statute of succession of the State of California. [3] In the event that said Douglas Baird Wright is living and has attained the age of twenty-five years at the time of the death of said Belle Wright, then one-half of said corpus shall not remain in further trust but shall be conveyed, delivered and paid over unto him. [4] In the event said Douglas Baird Wright dies during the lifetime of said Belle Wright, then upon her death one-half of the said corpus shall be conveyed, delivered and paid over as aforesaid unto her heirs, as the case may be, and the other one-half thereof unto the heirs at law of said Douglas Baird Wright.”
It is the contention of appellants that as the unadopted boy was more than twenty-five years of age at the time of the wife’s death, then no power of appointment was vested in her under the terms of paragraph 4, nor could the property pass to her heirs at law or beneficiaries under her will; that therefore one-half of the trust property was undisposed of and reverted to the husband’s estate, and as residuary legatees thereof they are entitled to it.
Appellants argue that the paragraph sets forth three separate and distinct contingencies governing the disposal of the entire trust estate. They assert the first contingency provides that if the boy had not attained the age of twenty-five years at the time of the death of the wife the latter would be entitled to exercise the power of appointment. They assert likewise that in the event of the death of the boy during the wife’s lifetime then also would she have been vested with the power of appointment in question. But they contend that the remaining contingency is the one which actually occurred—that is, that the boy had attained the age of twenty-five years before the death of the wife and therefore she had no power of appointment whatsoever, in that
An examination of the fourth paragraph discloses very clearly that the intention thereof was to divide the trust estate into two halves. As to the first half the-trust was to terminate and the property was to be disposed of on the death of the wife. The only contingency was with respect to the recipients of the half, which contingency was whether or not at the time of her death the wife had or had not exercised the power of appointment. The provisions of the trust relating to and controlling that half are contained entirely in the first sentence of the fourth paragraph. As to the balance of the trust, that is to say, the other one-half, there are contingencies established depending on the age of the boy or his death; but these provisions are complete in themselves and apply only to such half.
Appellants’ basic fallacy appears to be their failure to appreciate that each of the two separate halves is completely disposed of under the fourth paragraph of the trust, and that there are no contingencies applicable to the wife’s one-half other than her death and her exercise or failure to exercise her power of appointment. It is significant that the second sentence of the fourth paragraph particularly provides for the “further trust” in the remaining one-half of the property; that the third sentence is the negative corollary of the same provision and provides the contingency upon which the boy’s one-half shall not remain in “further trust.”
It will be observed from what we have heretofore said that the particular contingency, and the language thereof, upon which appellants base their case is the sentence labeled “[3],” reading:
“In the event that said Douglas Baird Wright is living and has attained the age of twenty-five years at the time of the death of said Belle Wright, then one-half of said corpus shall not remain in further trust but shall be conveyed, delivered and paid over unto him.”
If the language of the fourth paragraph of the trust may reasonably be said to be doubtful, its meaning cannot be a matter of doubt when the property settlement agreement is read in connection with the declaration of trust. The two were parts of but one transaction, and so must be read together. The property settlement agreement plainly shows not only that the declaration of trust was made for the wife and the unadopted boy, and no one else, but in addition that
For the reasons indicated the judgment is affirmed.
Moore, P. J., and McComb, J., concurred.