Bank of New York v. Palmer

269 A.D. 229, 54 N.Y.S.2d 902
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 4, 1945
StatusPublished
Cited by2 cases

This text of 269 A.D. 229 (Bank of New York v. Palmer) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bank of New York v. Palmer, 269 A.D. 229, 54 N.Y.S.2d 902 (N.Y. Ct. App. 1945).

Opinion

Cohn, J.

During his lifetime Courtlandt Palmer, Sr. (hereinafter referred to as “ Courtlandt Sr.”) created inter vivos trusts for each of his four children, the eldest of whom was Courtlandt Palmer, Jr. (hereinafter referred to as “ Courtlandt Jr.”). Several deeds of trust were executed by the father. The two controlling deeds of trust were executed on November 9, Í867, and November 22,1872. By them Courtlandt Sr. created a life interest in Courtlandt Jr. in the income from an undivided one fourth of the grantor’s property, with a limited power of appointment of the principal. The limitation permitted Courtlahdt Jr. to appoint only to his own children and to issue of his deceased children, in such shares and proportions and on such terms and conditions or on such trusts ” as he might appoint, subject to a charge on the income to the extent of $7,000 a year for the benefit of Courtlandt Jr. ’s widow.

The power of appointment granted by his father was exercised by Courtlandt Jr. in his last will and testament. He directed that the corpus of his trust be divided into four shares, one for each of his children, to be continued in trust during such child’s life, with a power of appointment again strictly limited to the child’s issue. If any child were to die without issue, the corpus of his or her trust was to be divided into as many shares as such deceased child left brothers and sisters surviving, and collective issue of a deceased brother or sister. The share of a [234]*234surviving brother or sister was to be continued in trust during his or her life, with the same powers and subject to the same limitations as applied to the shares originally set apart for such brother or sister. The share of collective issue of a deceased child went to them, outright.

Courtlandt Jr. died on July 23, 1888, survived by his four children: (1) Robert A. Palmer, who died May 28, 1927, leaving surviving his second wife, Belle Palmer, and Catharine A. P. Riley and Marian S. P. Wilcox, children by his first wife; (2) May Suydam Palmer, who had no issue upon her death on December 27, 1941; (3) Courtlandt Palmer III, still living, unmarried and without issue and (4) Eva P. Sikelianos, still living, married and with one child named G-lafkos Sikelianos, who in turn has two children.

Following the death of May Suydam Palmer (hereinafter referred to as “ May ”) who was one of the aforementioned children of Courtlandt Jr., this action was brought by the trustees of the trust for her, for the judicial settlement of their accounts, an interpretation of the will of Courtlandt Jr. and for a determination as to the manner in which the remainder of the trust for May was to be distributed.

May having died without issue, Courtlandt Jr.’s will directed that in such event the principal of her trust be divided into three shares: One share to.go outright to appellants Catharine A. P. Riley and Marian S. P. Wilcox as the collective issue of Robert A. Palmer, a deceased child of Courtlandt Jr., the other two shares to be continued in trust, one share during the life of Courtlandt Palmer III and the other during the life of Eva P. Sikelianos.

The devise of one third to the children of Robert A. Palmer was coneededly valid because it had been held in trust during but two lives, that of Courtlandt Jr, and of May. The provision for the continued trusts during the lives of Courtlandt Palmer ITT and Eva P. Sikelianos involved a suspension of the power of alienation, during'three lives — that of Courtlandt Jr., of May and of Courtlandt Palmer III or of Eva P. Sikelianos. This was in violation of statute and was, therefore, invalid. (Real Property Law, § 42; Personal Property Law, § 11; Matter of Gorham, 283 N. Y. 399.)

On this appeal, the main issue is whether the valid provision of the will of Courtlandt Jr. which, through the exercise of the power of appointment, directs that one third of the principal of May’s trust be paid over outright to the issue per stirpes of his deceased son Robert A. Palmer, can be separated from the [235]*235attempted invalid appointments in trust of the remaining two thirds.

The trial court decided that since the attempted disposition by Courtlandt Jr. of two thirds of the remainder of the trust property held for May is invalid, the disposition of the entire remainder must fall; that the property must be distributed under the provision of the deeds of trust made by Courtlandt Sr. as in default of the exercise of the power of appointment granted by him to Courtlandt Jr.; that the property is, therefore, distributable in equal shares to the four children of Courtlandt Jr. living at the time of Courtlandt Jr.’s death. This would result in the following distribution: One fourth of the principal of May’s trust would pass to the estate of Eobert A. Palmer, deceased; one fourth to the estate of May, deceased; one fourth to Courtlandt Palmer III and one fourth to Eva P. Sikelianos.

Courts will strain to effectuate as far as possible the purpose of the testator. “If we can read into a will an intention to preserve any part of it, even with the illegal portions stricken out, the court will do so.” (Matter of Durand, 250 N. Y. 45, 53, Matter of Summerfield, 172 Misc. 509, 512 [Foley, S.].) “ The‘ courts will excise the invalid portions of a will and preserve the remainder where such excision does not pervert or deform beyond recognition the intention of the testator.” (Matter of Lyons, 271 N. Y. 204, 209 [Lehman, J.]; Matter of Eveland, 284 N. Y. 64.)

Here the pattern of Courtlandt Sr. and Courtlandt Jr. for the devolution of the property of Courtlandt Sr. was to vest the corpus of the trust property only in lineal descendants of Courtlandt Sr. The purpose of the composite plan as indicated ■ in the trust deeds of Courtlandt Sr. and in the will of Courtlandt Jr. was that, so far as legally possible, no one but descendants of their own blood should share in the enjoyment of Courtlandt Sr.’s property. The primary object of the testator’s bounty in keeping with the power of appointment was the testator’s children and their descendants. If the entire remainder of May’s trust is disposed of as though Courtlandt Jr. had failed to exercise his power of appointment, a share of that property will fall into the hands of those who were not the primary objects of his bounty.

Moreover, Courtlandt Sr.’s deeds of trust expressly provide that if any provision thereof be invalid, it shall be considered null and void and the valid parts permitted to stand. May’s trust was created by the will of her father under the power [236]*236granted by the trust deeds of Courtlandt Sr. “ The appointment under the power is to be read into the will by which the power was created and the validity of the gift determined as if the provision thus incorporated had been there from the beginning.”' (Cardozo, Ch. J., Bishop v. Bishop, 257 N. Y. 40, 51.) To permit the valid one-third gift, we are persuaded, is in accord with the intended plan of devolution. The valid one-third share to appellants Catharine A. P. Riley and Marian S. P. Wilcox should, accordingly, be carried out as provided by the terms of the will of Courtlandt Jr.

As to the remaining two thirds of the principal of May’s trust, it is argued that the remainders of the two invalid trusts should be accelerated and paid over one half to Catherine A. P. Riley and Marian S. P. Wilcox, as the collective issue of Robert A. Palmer, and the other one half to Glafkos Sikelianos, the only child of Eva P. Sikelianos.

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Related

In re the Construction of the Will of Bell
204 Misc. 296 (New York Surrogate's Court, 1953)
In re the Accounting of City Bank Farmers Trust Co.
270 A.D. 157 (Appellate Division of the Supreme Court of New York, 1945)

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Bluebook (online)
269 A.D. 229, 54 N.Y.S.2d 902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-new-york-v-palmer-nyappdiv-1945.