Bar Harbor Banking & Trust Co. v. Preachers' Aid Society of the Methodist Church

244 A.2d 558, 1968 Me. LEXIS 231
CourtSupreme Judicial Court of Maine
DecidedJuly 31, 1968
StatusPublished
Cited by6 cases

This text of 244 A.2d 558 (Bar Harbor Banking & Trust Co. v. Preachers' Aid Society of the Methodist Church) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bar Harbor Banking & Trust Co. v. Preachers' Aid Society of the Methodist Church, 244 A.2d 558, 1968 Me. LEXIS 231 (Me. 1968).

Opinion

*559 DUFRESNE, Justice.

As trustee under indenture executed by Louise Fernald Goulding during her lifetime and as trustee under her last will duly probated and allowed in the Probate Court for the County of Hancock in this State, the Bar Harbor Banking and Trust Company (the Bank) brought the instant action under 14 M.R.S.A. § 6051(10) for the purpose of having the Superior Court determine whether the principal of the living trust which terminated with the death of Mrs. Goulding was payable to the testamentary trustee bank by reason of a proper and legal testamentary exercise by Mrs. Goulding of the power of appointment which she reserved to herself in the living trust, or whether the principal of said trust passed and was payable to her next of kin as provided therein in default of appointment. The deceased’s next of kin were joined as parties defefidants.

The single Justice below in the Superior Court found

“nothing in the language of the will, nor in the testimony of the witnesses who appeared at trial, or in the exhibits offered and admitted into the evidence, that would support the position that the language of the residuary clause as viewed in the light of all the circumstances surrounding the testatrix before and at the time of the execution of said will, was an exercise of the power of appointment as contained in the trust indenture, * * * The residuary clause of the will only operates to pass those assets remaining in the estate of the testatrix and does not reach the assets remaining in the trust,”

and passed a decree accordingly. Preachers’ Aid Society of the Maine Conference of the Methodist Church, sole beneficiary of the testamentary trust, appeals.

On February 23, 1954 Mrs. Goulding, a resident of Southwest Harbor, Maine, established an inter vivos trust of most of her property. She conveyed her securities and some cash to the Bar Harbor Banking and Trust Company, a Maine corporation having its principal office in Bar Harbor, Maine, in trust to invest and reinvest the trust estate, collect the income, and after the payment of proper expenses and charges to pay the income to her during her lifetime on a monthly basis, and such additional amounts of principal as the trustee in its discretion might deem necessary for her maintenance, comfort and support. The trust was irrevocable but she expressed therein the right to deliver to the trustee, subject to the trust, additional property as she might so desire.

Of relevancy to the issue before us, she reserved to herself in the trust agreement the following power of appointment:

“Upon the death of the Settlor, the Trustee shall transfer and pay over the remaining principal of the trust estate free of trust to such person or persons and in such proportions and amounts as the Settlor may by her last will and testament direct or appoint, and in default of' such direction or appointment, to transfer and pay over the remaining principal of the trust estate free of trust to those persons who would, at her death, under the intestate laws of the State of Maine then in force, be entitled to inherit personal property owned by her and in the proportion in which they would be entitled to share her personal property under said intestate laws.”

At the date of the trust indenture Mrs. Goulding was a widow of advanced age with no children and to all appearances with prospective next of kin no more closely related than in the degree of second cousins. On October 14, 1953, approximately 4 months before the execution of the living trust, Mrs. Goulding had made a will to be referred to hereinafter as the first will, in which she appointed the plaintiff bank as executor. There is no evidence however indicating any participation by the bank’s president in the executrix’ execution of this will as does appear con *560 cerning that of her later and last will. In this first will she remembered one only of her next of kin by bequeathing to Helen Elizabeth Fernald, daughter of her cousin Henry T. Fernald, deceased, all her jewelry, silver, Fernald heirlooms, pictures, piano and desk.

Of some pertinency to our present issue, however, is the residuary clause in this first will which reads as follows:

“FIFTH: I give, devise and bequeath all the rest, residue and remainder of my property real, personal and mixed, of which I may die seized or possessed, or over which I may have testamentary control, or to which I may be in any way entitled, of whatsoever the same may consist and wheresoever situated, including any legacies which may lapse or revert to my estate, to the Preachers Aid Society of the Maine Conference of the Methodist Church and their successors in office, to be held by them in trust, to be invested and reinvested, the income of the same to be used annually for the benefit of the aged and retired preachers of said conference, their widows and orphans. This bequest is given in memory of my father, Rev. Oliver Haley Fernald, and my mother, Ruth Amelia Fernald, and is to be known as the Oliver Haley Fernald and Ruth Amelia Fernald Fund.” (Emphasis added).

In making this first will, Mrs. Goulding had the benefit of counsel representation and advice. The evidence is silent concerning any intention of the testatrix at the time of the execution of her first will to later establish the living trust in which she reserved to herself the power to appoint the remaining principal of the fund at her death to such person or persons and in such proportions and amounts as she might direct or appoint by her last will and testament. However, the language of her residuary clause which bequeathed and devised all the rest, residue and remainder of her property “real, personal and mixed, of which I may die seized or possessed, or over which I may have testamentary control, or to which I may be in any way entitled” was sufficiently broad and so indicative of testamentary exercise of any power of appointmept, past, present or future, that, short of evidence compelling a finding of a contrary intent on her part, it may be inferred that Mrs. Goulding believed that from the very origin of the living trust to the date of the execution of her last will in 1961, her first will was an adequate testamentary declaration of intent to exercise her reserved power of appointment under the trust indenture.

By her second and last will dated June 20, 1961 Mrs. Goulding bequeathed her varied personal property among her several next of kin and remembered the Congregational Church with a monetary legacy, which she had not done in the first will, but more importantly for our present analysis she omitted from^the residuary clause of her last will that language in the first will which we hereinbefore construed to be an express exercise of any power of appointment, past, present or future. The reference residuary clause in pertinent part reads as follows:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Whicher v. Abbott
449 A.2d 353 (Supreme Judicial Court of Maine, 1982)
In Re Estate of Thompson
414 A.2d 881 (Supreme Judicial Court of Maine, 1980)
Ziehl Ex Rel. Ziehl v. Maine National Bank
383 A.2d 1364 (Supreme Judicial Court of Maine, 1978)
Babb v. Rand
345 A.2d 496 (Supreme Judicial Court of Maine, 1975)
National Newark & Essex Bank v. Hart
309 A.2d 512 (Supreme Judicial Court of Maine, 1973)
Dow v. Atwood
260 A.2d 437 (Supreme Judicial Court of Maine, 1969)

Cite This Page — Counsel Stack

Bluebook (online)
244 A.2d 558, 1968 Me. LEXIS 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bar-harbor-banking-trust-co-v-preachers-aid-society-of-the-methodist-me-1968.