— This case was submitted to the general term, on a statement of facts agreed to by the parties, and the controversy between them arises under the last will and testament of John H. White, late of the city of ¡New York, deceased. The first clause of the will is in these words: “After all my lawful debts are paid and discharged, I
There are numerous cases in the courts of this state which bear more or less upon this subject. It is not necessary to refer to any case other than Reynolds agt. Reynolds, (16 N. Y., 257), in which the rule is stated in harmony with the English cases, that “ where a testator devises real estate, after the payment of debts and legacies, it has been held that the real estate was charged.
Where there is a charge for the payment of debts generally, followed by specific dispositions of real estate, the purchaser is not bound to see to the application of the purchase-money. “ The charge is equivalent to a trust, and the same effect will be given to it by a court of equity, as if a direct devise had been made to the trustees for payment of debts” (Leading Cases in Equity, White & Tudor, note to Elliott agt. Merryman, vol. 1., page 88 [4th Amer. ed.], marg. p. 76).
The result of the rule in England is that where the debts are charged generally they do not follow the land in the hands of a Iona fide purchaser, otherwise however where there is a charge of a specific debt or legacy. The reason for the distinction is stated in the cases. The rule is stated in Perry on Trusts {vol. 2, seo. 802), and is sustained by the cases, that if a testator “ charges payments upon real estate, and then devises it to be held absolutely, the devisee can sell the estate and give valid receipts and discharges for the purchase-money.”
But in this state-, although the charge be of debts generally, yet the charge becomes and remains a lien on the devised lands and runs with it for the term of three years.
By the (lode of Civil Procedure {seo. 2750), it is provided in substance that any time within three years after
Hyde agt. Tanner (1 Barb., 75) decides that this creates what is called a statutory lien for three years, running with the land, not only in the hands of the devisees, but in the hands of a purchaser from the devisee. After three years, however, the land is discharged of the lien, and the bona fide purchaser takes the same free and discharged from the debts.
In Slocum agt. English (62 N. Y., 494), Chubch, O. J., says: “ The object of the statute was to fix a certain period after which bona fide purchasers would be protected, and actions might be maintained against heirs and devisees (Jewett agt. Keenbulty, 16 Barb., 193; Parkinson agt. Jackson, 18 Hun, 353). This view was also advanced as late as February, 1884, in Smith agt. Soper (32 Hun, 46) in which the general term of the second department says: “ The statute is based upon the principle that the purchaser having paid his money in good faith, it devolves upon the creditor to see that it is applied in payment of the debts of the testator, and upon the further principle that the creditors having three years in which to enforce their lien, if they neglect to do it within that time bona fide purchasers shall not be prejudiced by such neglect.”
In the case before us, when the plaintiff agreed to sell the land to the defendant, more than seven years had elapsed since the probate of the will and the- issue of letters testamentary. Ho delay appears to have been allowed in making and filing ail inventory of the personal estate, and in administering it, or in proceeding to a final decree. The executrix seems to have made a full exhibit of the condition of the estate for the guidance of creditors and all concerned.
Ho action or proceeding of any kind has been commenced
Upon such state of facts it seems clear to us that the devisee can give a good title unincumbered by the debts of the testator. The statute lien, so called, is at an end. Nor can creditors be prejudiced by the sale of the land. It is in fact a movement in the direction of paying the debts by raising a fund for the purpose. The price agreed to be paid is presumably the full value of the land. The creditors must look to it that the proceeds go to the satisfaction of debts. In no other way than through a sale can the real estate be utilized in favor of creditors.
The objection to the title, therefore, that the real estate is incumbered by the debts of the testator is not well taken. Nor does the objection that the widow was put to her election between the gift to her under the will and her claim of dower furnish any sufficient reason to question the goodness and completion of the conveyance she proposes to make or the title she has tendered. All that remains to her is in substance her claim of dower. The estate is insolvent. The testator presumably knew the condition of his estate and the value of his gift to his wife.
In the proceedings in the surrogate’s court upon the settlement of her account as executrix, the plaintiff asserted her claim, “ as widow, to her dower out of the proceeds of the real estate when sold.” She proposed “ to wait until the sale and then have her dower right adjusted.”
. The will does not declare that the devise was in lieu of dower. And, when the condition of the whole estate is considered, the devise to her is not necessarily, or by implication, inconsistent with her claim of dower, to be adjusted and paid out of the proceeds of the sale.
The claims of creditors must needs be adjusted out of the residue of the property. They will look after that.
The result reached is, that the objections taken by the defendant to the title are not well founded.
