Bank of Delaware v. Hitchens

40 Del. Ch. 46
CourtCourt of Chancery of Delaware
DecidedJune 15, 1961
StatusPublished

This text of 40 Del. Ch. 46 (Bank of Delaware v. Hitchens) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of Delaware v. Hitchens, 40 Del. Ch. 46 (Del. Ct. App. 1961).

Opinion

Seitz, Chancellor:

The Bank of Delaware, successor trustee, seeks instructions with respect to the distribution of the corpus of a trust created under the will of Daniel E. Wilson (“testator”).

The testator executed his will on March 22, 1933 and died December 27, 1934. After making certain specific bequests and devises, he devised and bequeathed the remainder in trust to pay the income to Janet Miller for life. He provided by Item Seventh that upon her death the trust principal should be divided equally “among the following relatives of mine who are at that time alive”. He then listed by name a nephew, a brother and three sisters. He then provided:

“Eighth: In the event that all of the distributive provisions of this will fail, then I direct that my estate be distributed as is provided for in the laws of Delaware for intestate estates.”

[48]*48The life beneficiary died October 6, 1959. However, all the named remaindermen predeceased her, the last one having died February 6, 1957.

The trustee assumed that the deaths of the remaindermen named in Item Seventh, before the income beneficiary, rendered Item Eighth operative. It alleges that it is uncertain as to whether the intestate beneficiaries under Article Eighth are to be determined as of the date of death of the testator or as of the death of the life beneficiary, or even as of the death of the last of the relatives named in Article Seventh.

The two appearing defendants, Ruth M. Neilsen and Susan W. Bedyk (“defendants”), claim a share of the remainder interest on the theory that the will shows that the testator clearly intended that the intestate beneficiaries should be determined as of the date of the death of the life tenant.

A large number of possible distributees have not filed an answer or entered an appearance. On application, the court appointed an Amicus Curiae to present the views favoring a construction that the controlling dates are either that of the testator’s death or the death of the last beneficiary mentioned in Item Seventh. However, the Amicus went on to argue that Item Eighth never became operative. Thus he contends that under Item Seventh there were no takers and so the testator died intestate as to the remainder.

One of the defendants argues that the Amicus exceeded the scope of his appointment when he contends that Article Eighth of the will never became effective. I need not consider this point because under my construction of the will the same persons take whether or not Item Eighth is applicable.

Under Item Seventh all those designated as contingent re-maindermen died before the income beneficiary. There was no alternative provision under that Item. In consequence, the testator died intestate so far as that Item is concerned. See Ford v. Wilson, 10 Del.Ch. 124, 85 A. 1073. Thus, the remainder had to pass under the intestate statute.

[49]*49Now let us assume that Item Eighth applies, despite the contention of the Amicus that it never became operative because “all of the distributive provisions” of the will did not fail. The next issue is whether the intestate heirs who take under Item Eighth are to be determined as of the date of the testator’s death or as of the date of the death of the income beneficiary. Parenthetically, it is not contended by anyone that the date of death of the last remainderman named in Item Eighth is controlling.

It appears to the court that the wording of Item Eighth is decisive. I say this because the testator directed “that my estate be distributed as is provided for in the laws of Delaware for intestate estates”. The only Delaware law in this regard fixes the heirs as of the date of the testator’s death. Burton v. Burton, 4 Har. 38; 3 Page on Wills (Life ed.) § 1054. The case of DeWolf v. Middletown, 18 R.I. 810, 26 A. 44, 31 A. 271, 31 L.R.A. 146, cited by defendants, may or may not be inconsistent with the Burton decision. In any case, I am bound by the Burton case and consider it to be “good” law.

In any event, defendants recognize that the general rule of construction is that the heirs at law are determined as of the date of death of the ancestor and not as of the death of the last life tenant in the absence of a clear and unambiguous indication of an intention to the contrary. Compare Delaware Trust Co. v. Delaware Trust Co., 33 Del.Ch. 135, 91 A.2d 44, 38 A.L.R.2d 318 (and cases cited therein).

It is argued that the contingent nature of the remainders mentioned in Item Eighth suggest that the heirs are to be determined as of the date of the death of the life beneficiary. The facts here just do not provide a basis for emphasizing this factor. I say this because those who are to take as heirs under the statute could have had no particular importance to the testator. The persons in whom he was interested had to predecease- the income beneficiary before Item Eighth became operative. The case of Delaware Trust Co. v. Delaware Trust Co., above, dealt with a very different situation, e.g., the life tenant was the sole heir. I conclude that there is nothing [50]*50in this will or the supplemental facts which show a clear intent that the heirs are to be determined as of the death of the income beneficiary.

I therefore decide that the trust remainder should be distributed to those who would have been the intestate heirs of the testator at his death or to their successors in interest.

Present order on notice.

Supplemental Opinion.

After the filing of the court’s opinion the parties were given the opportunity to argue who were the “successors in interest”, to the heirs of the testator. This is the decision thereon. The defendants, Bedyk and Neilsen, point out that • neither will share if, in determining the™ present successors' in interest of the intestate heirs, the trustee must follow testamentary dispositions of estates.

The remaindermen mentioned in Item 7 all predeceased the income beneficiary. It would seem clear, then, that upon the death of the last remainderman in 1957, the remainder interest became intestate property. In such a situation the court usually will go back to the testator’s date of death and ascertain who would have been his heirs at law under the statute at that date. Since the testator had no children or parents surviving, the intestate share passed to his brothers and sisters and the issue of deceased brothers and sisters. Since there apparently was an intestacy throughout three of. the lines of succession, there is no quarrel as to the disposition of- those three-fifths. The dispute concerns the transmissibility of the intestate interests of Harry and Lena, in particular. Harry left a will which cut off his daughter, Sue Wilson Bedyk. Lena died intestate but left a son Richard who died testate and who cut off his daughter, Ruth Neilsen.

The defendants Bedyk and Neilsen argue that there is a cleat expression of intention to exclude the remaindermen in Item 7 from taking transmissible interests under Item 8. I do not find any evidence in this will of an intent to eliminate all wills in determining the line of succession. To pick out th.e date- of death of the last remainderman as the contingent event upon which transmissibility [51]

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Related

Delaware Trust Co. v. Delaware Trust Co.
91 A.2d 44 (Court of Chancery of Delaware, 1952)
De Wolf v. Middleton
26 A. 44 (Supreme Court of Rhode Island, 1893)
Ford v. Wilson
85 A. 1073 (Court of Chancery of Delaware, 1913)
Delaware Trust Co. v. Delaware Trust Co.
91 A.2d 44 (Court of Chancery of Delaware, 1952)

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Bluebook (online)
40 Del. Ch. 46, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-delaware-v-hitchens-delch-1961.