196 Pa. 472 | Pa. | 1900
Opinion by
The whole question in this case is, whether a testamentary provision in the will of a father in favor of a son is to be treated as a spendthrift trust, so as to defeat the claim of an attaching creditor of the son to the income of the fund in question. The words of the will upon which the controversy arises are a part of the fifth clause which disposes of the residue of the testator’s estate. After providing that the executors shall let and demise all the real estate, and invest all the personal estate upon good securities, the will directs the executors to hold all the net proceeds of the income in trust, “ to pay the whole net income thereof quarter yearly .to my said beloved wife, Louisa A. Clinton, into her own hands for her separate use and maintenance during all the term of her natural life and
The testator, Edwin Clinton, died in September, 1892, and his widow, Louisa A. Clinton, died in January, 1896. The son, Winfield A. Clinton is still living and the present proceeding is an attachment hi execution upon a judgment obtained by the plaintiff against the said Winfield A. Clinton, November 27, 1897, for $1,576.48. Interrogatories having been served upon the executors as garnishees, they answered, saying that they had in their hands at the time of making answer $1,664.78, as income held by them as trustees under the will, but that they are advised and informed that the said income was held as a spendthrift trust in favor of the said Winfield A. Clinton and is not subjefct to attachment or execution for his debts or liabilities. The learned court below held that the income of the fund was the - absolute property of Winfield A. Clinton, and was not protected as a spendthrift trust from the claims of his creditors, and awarded a judgment against the garnishees, from which judgment the present appeal is taken. We are unable
It must be observed that the provision in favor of the cestui que trust, Winfield A. Clinton, is one of three provisions, all of a similar character, and manifestly intended to accomplish tbe same purpose. They are all dispositions of the same fund, to wit: the net income of the residuary estate, and it cannot be doubted that the animating purpose of the whole was the support and maintenance during their respective lives of (1) the testator’s widow; (2) Winfield A. Clinton, his son, and (3) Blanche Clinton the wife of his said son. Each of these beneficiaries was in turn to be supported during life by the use of this income. The importance of this consideration is to show that there was a common purpose moving the mind of the testator to provide a means of physical subsistence for each of these, his natural beneficiaries, during the whole of their respective lives. So far, therefore, as the ultimate determination of the question depends upon the intention of the testator to accomplish this definite object, it may be assumed that this was his sole motive and purpose. As will be hereafter seen this intent is always regarded by the courts as an important factor in the contention, and in some cases, as a controlling feature, when the usual words to create a spendthrift trust are entirely absent from the will.
But in addition to this general indication of the testator’s intent let us give our attention to the precise language of the will creating the trust. Recurring to the fifth clause of the will, we find that as to the first beneficiary, the widow, the provision is “ to pay the whole net income thereof quarter yearly to my said beloved wife Louisa A. Clinton, into her own hands for her separate use and maintenance during- all the term of her natural life and not to be liable to anticipation and her receipt alone to be the sole discharge of my said trustees.” We think it will hardly be contended that this provision in favor of the widow was not adequately protected against the claims of any creditors she might have. But without elaborating that subject, the immediately following provision, and it is part of the same sentence, is, “ and from and immediately after the decease of my said wife Louisa A. Clinton, then my said trustees and the survivors and survivor shall pay said net income quar
The writer has been more particular as to the meaning of this word than he would otherwise have been, because the ruling of the court below was based principally upon the decision
Having thus ascertained that the testator meant that the net income now in question was to be paid to his son “ for his use and support,” and that this necessarily imports that his son shall be constantly provided during his whole life with the means to obtain for himself those things which are essential to his personal, physical subsistence, the way is made quite clear to a ready solution of the question under consideration, and to an easy review of the decisions of this court on this subject. For instance if the income is to be paid to the cestui que trust for his personal, physical support and maintenance, it is manifest that if it is made subject to the claims of creditors, the whole plan and purpose of the testator is frustrated. It is too clear for argument that he could not possibly have intended that the means of subsistence which he had thus provided for his son, should be subject to seizure by his creditors, thus depriving not only himself, but his wife and family of the necessary means of living. It is not essential that a spendthrift trust should contain words providing specifically that the income shall not be subject to the debts or liabilities of the cestui que trust, and this appears by a number of the decided cases. Stambaugh’s Estate, 135 Pa. 585, was a remarkable instance of the absence of any such words, or of any of the words ordinarily used to create a spendthrift trust. The present case is infinitely stronger in all its features than that. The words of the will were, “And from the other aforesaid dividend share of my estate all the just debts and claims that I have and hold .against my son Moses Stambaugh are to be subtracted from the
The -case of King’s Estate, 147 Pa. 410, so much relied upon both by the court below and appellee’s counsel, has not the least analogy to the present case. The question of spendthrift trust wras not involved in the case and it was only referred to incidentally as a proposition that could not be applied to support the trust in that way. This was very obvious because the will provided that the whole income should be paid directly and unconditionally to the wife without qualification or restriction. Of course there was nothing to limit her absolute ownership, and there was also no feature of the will creating a spendthrift trust or making any provision against creditors or incurring debt^.
But the case of Smith v. Savidge, 4 Pennypacker, 320, is a very strong authority in support of a spendthrift trust in the case at bar. There the provision was, “My son Levy is to have $2,000.00 out of my estate before a distribution is made, and I do appoint my son George as a committee for my son Levy to take charge of all of his money and pay him the interest, or so much of the principal that will give him a comfortable support, and after his death then his estate shall be equally divided between all his children.” This court held that neither the principal nor the interest of the bequest to Levy was liable to attachment by his creditors. In distinguishing the case from Park v. Matthews, 36 Pa. 28, and Girard Life Ins. & Trust Co. v. Chambers, supra, we said, “ For here as we have just shown, the expressed intention is the support of the donee and for that reason both the principal and interest are to be used.” This was an interpretation of the word “support”
In Vaux v. Parke, 7 W. & S. 25, the trust was, “ to pay the rents, issues and profits, interest and income arising therefrom into the proper hands of my son James, or to such person or persons, as he by any order in writing, may for that purpose appoint.” There was a proviso that the trustees might in their discretion convey the estate to the son in fee simple. It was held that the will created a good spendthrift trust against the claims of creditors. Sergeant, J., delivering the opinion, said: “ Settlements of this kind by parents on their children have been of constant occurrence, and much property has thus been adjusted by will or deed. No case has ever decided that a trust of this description can be annihilated by an execution against the cestui que trust.”
In conclusion it is only necessary to say that it would be utterly impossible to furnish continuing “support” for the whole life of a cestui que trust, out of an annual income fund, if that fund is to be held subject to the claims of creditors who may at any time take it from him by means of adversary proceedings.. Isis therefore a necessary inference that the testator had no such intent in this case, and hence it follows that his purpose was to establish a spendthrift trust in favor of his son. The assignment of error is sustained.
The judgment is reversed and judgment is now entered in favor of the defendants, garnishees, upon, their answer filed, the costs to be paid by the plaintiff.