Atlantic National Bank v. St. Louis Union Trust Co.

211 S.W.2d 2, 357 Mo. 770, 1948 Mo. LEXIS 685
CourtSupreme Court of Missouri
DecidedApril 12, 1948
DocketNo. 40444.
StatusPublished
Cited by39 cases

This text of 211 S.W.2d 2 (Atlantic National Bank v. St. Louis Union Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic National Bank v. St. Louis Union Trust Co., 211 S.W.2d 2, 357 Mo. 770, 1948 Mo. LEXIS 685 (Mo. 1948).

Opinion

*775 CONKLING, J.

This is an equitable action, filed in 1944, which prayed the construction and determination of the effect of a written instrument captioned “Indenture of Trust” (hereinafter called the indenture) executed by Silas H. H. Clark (hereinafter called Clark) in which indenture Clark made his only child, a son, Snyder Hoxie Clark (hereinafter called Snyder), and the St. Louis Union Trust Company (hereinafter called defendant) trustees of a purported trust. . ....

The circuit court decreed that the indenture created a valid trust, ordered defendant to hold the property free from claims by .plaintiffs and to execute the purported trust under the indenture. The separate motions for new trial of the plaintiffs were filed and. thereafter sustained. Defendants appealed.

The indenture contained reservations to Clark, as infra quoted, and provided for, (1) payment to certain persons after Clark’s death of ten cash gifts or bequests, totaling $83,500, (2) payment of , the income to his wife and Snyder, and then to the survivor of them, with one-half of the principal absolutely to Snyder’s children, in certain contingencies, (3) payment of certain portions of the income to Clark’s brother and sister-in-law (both since deceased) in certain contingencies, and (4) usé of certain sums to establish a home .for aged and infirm railroad employees, under certain named conditions. The answers of the defendants joined in the prayer of the petition praying construction.

The indenture was executed and accepted in writing by the trustees on November 9, 1898. Between that date and his death in June, 1900, Clark had many thousands of dollars in active accounts in many banks. He made many large deposits in and withdrawals from said accounts, traded quite actively in securities and paid in full for many stocks he had not theretofore owned. Clark retained possession and control of his stocks, bonds, moneys, other evidences of indebtedness and personal properties, during his lifetime, and used the same as he desired. The record before us does not show any delivery to either of the trustees, either at the time of the execution of the indenture, or during Clark’s lifetime, of any personal property, stocks, bonds or anything of value whatever. Clark died intestate in June, 1900, survived by his widow, who died in 1914, and by Snyder, who died in 1944. Snyder was survived only by the two individual plaintiffs. There was no administration on Clark’s estate. The assets of his estate consisted solely of stocks, bonds, money and choses in action, now valued in excess of $1,000,000. Clark had no real estate.

Mary Clark Lind and Elizabeth Clark Gurganious (hereinafter called the individual plaintiffs) are the legally adopted, children of Snyder. The trustees began the administration of Clark’s purported trust immediately after his death and continued to administer it until *776 the death of Snyder in 1944. ■ Defendant lias since continued as sole trustee. The Atlantic National Bank of Jacksonville, Florida (hére-iiiáfter called plaintiff bank) is the executor of Snyder’s estate: '

' "In its'preliminary paragraphs the indenture provided that “I . '. .' have given, granted, assigned, set-over and1 conveyed, and do hereby give, grant, assign, set over'and convey”, to the trustees, "áll ánd singular my goods, chattels, effects, and choses in action whatsoever and wheresoever .situate and of what nature and kind soever ! . to have and to hold, said goods, chattels, effects and choses in action hereby granted, bargained; sold, assigned, set over and conveyed, and every part and parcel and increment thereof, and such as may he during my life obtained in exchange, lieu or stead thereof” unto the trustees, "provided, always, ahd these presents are' upon the following special trusts, confidence and" express conditions, namely: .* . . That I, the said S. H. H. Clark, shall be permitted to Use, occupy ■ and enjoy all and singular said goods, chattels, effects and choses in action, and every part and parcel thereof; as well as ' any ‘ and all increment arising therefrom, during [5]’ niy natural' life,' without paying anything for the same or in respect thereof; and that during my life, I may alter, amend or revoke this conveyance by an express declaration in writing referring hereto”.

The indenture further provided that, "from and after my decease, this conveyance remaining. unaltered or unrevoked”, the named trustees "shall forthwith take, hold, manage and control” Clark’s assets, make payment of the ten specified gifts or bequests and administer the purported trust as therein provided. All that was accordingly done. After Clark’s death the trustees collected and took physical possession of all of Clark’s property, paid his funeral expenses, the expenses of his last illness, his premortuary debts, and the ten special gifts or bequests, and proceeded generally as though they were executors and trustees under a trust created by will.

'■ The plaintiff bank contends, (1) that the indenture was absolutely void for all purposes, and created no trust whatever because it conveyed neither legal or equitable title to Clark’s property in praesenti, (2) that there was no delivery of the property nor any possession theféof by the trustees until after Clark’s death, (3) that since the indenture was not executed in accordance with the statute of wills it was at most a mere abortive and ineffectual testamentary disposition, (4) that the indenture being void, attack thereon by plaintiffs is not barred by estoppel, nor by limitation, and (5) that at Clark’s death his propérty'descended to his heirs and the present' corpus should now be awarded to plaintiff bank as Snyder’s executor. The individual plaintiffs likewise contend the indenture is void.

"The"defendant contends, (1) the indenture created a valid express trust inter vivos, (2) that because Snyder accepted ahd executed the *777 purported trust' for 44-, years, bis executor is .estopped to attack .its validity, and tbe claim of plaintiff bank is barred by limitations. •»-» -

‘Other- points are raised and argued in the briefs but-in the-view we take of the case it is unnecessary to either state or discuss them.!--

As conceded by all the parties, the indenture- cannot be held valid ás a will, it not having been éxecuted in accordance -with the statute of wills. Nor can the indenture be given any effect as a -mere deed inter vivos. It is unquestionably testamentary in-character, was intended to be operative only in futuro and there was net delivery of the subject matter. --Professor Scott, in 43 Harvard Law Review, 521, 522, in-his. discussion of “Trusts and the Statute;, of .-Wills, states: “If the owner of securities or other personal property, intends to make a gift, of them but the gift is incomplete for lack of delivery, the donee takes nothing; and if the gift was intended to, be upon trust for a third person, no trust arises”. See also, In re Franz Estate, 344 Mo. 510, 127 S. W. (2d) 401, Allen West- Commission Co. v. Grumbles, 129 Fed. 287, 290.

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Bluebook (online)
211 S.W.2d 2, 357 Mo. 770, 1948 Mo. LEXIS 685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-national-bank-v-st-louis-union-trust-co-mo-1948.