Benz v. Fabian

54 N.J. Eq. 615
CourtNew Jersey Court of Chancery
DecidedMay 15, 1896
StatusPublished
Cited by5 cases

This text of 54 N.J. Eq. 615 (Benz v. Fabian) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benz v. Fabian, 54 N.J. Eq. 615 (N.J. Ct. App. 1896).

Opinion

Grey, Y. C.

There are two well-defined rules which have been recognized and applied in this state in the construction of wills in cases where there is a gift of property and also a donation of a power of disposal to the beneficiary.

In one class of cases, where there is a gift without definition of the estate given and also an unlimited power to dispose of the property, the generality of the gift and the unrestricted power of disposal are construed to pass an absolute estate to the beneficiary, and any subsequent gift over is held to be void, because such a limitation over is inconsistent with the complete estate given to the first taker.

[618]*618In this class supporting this rule may be found the following-named cases : Robinson v. Dusgale, 8 Vern. *181; Maskelyne v. Maskelyne, Amb. *750; Hixon v. Oliver, 13 Ves. *108; Dutch Church v. Smock, Sax. 153; Den, ex dem. Sharp, v. Humphrey, 1 Harr. 25; Annin v. Van Doren, 1 McCart. 143; Borden v. Downey, 6 Vr. 74, affirmed on error; Downey v. Borden, 7 Vr. 461; McClellan v. Larchar, 18 Stew. Eq. 17.

The other construction is sometimes called an exception to the foregoing rule, and is applied when the estate given is, by the express terms of the will, defined to be a life estate, and, if a power of disposal be added, the beneficiary will take a life estate only, and the added power of disposal will be held to be a separate and distinct gift, which has no effect to enlarge the life estate into a fee or to prevent a limitation over.

Supporting this doctrine, but recognizing the force of the former construction when circumstances call for its application, are the following cases : Tomlinson v. Dighton, 1 P. Wms. *149; S. C., 1 Salk. *239 ; Cory v. Cory, 10 Stew. Eq. 200; Pratt v. Douglas, 11 Stew. Eq. 516; Wooster v. Cooper, 8 Dick. Ch. Rep. 683.

In the case of Kent v. Armstrong, 2 Hal. Ch. 637, the construction limiting the estate given to be a life estate only was carried further than in any other case in this state. The terms of the devise were that the testatrix gave the lands “ to my beloved daughter E. R. A., to be by her possessed, enjoyed and occupied to her and her heirs forever, * * * but if my said daughter should die without heirs and intestate,” then &c. over to others. The case was certified into the supreme court for its opinion as to the effect of this devise. That court reported its unanimous opinion that the devise gave E. R. A. an estate in fee-simple;' that the words without heirs and intestate” implied a power of disposition, and are inconsistent with and avoid the limitation over. There was a decree accordingly. On an appeal from this decree, the court of errors recognized the rule that the gift of an estate generally, with an unlimited power of disposal, would vest a fee, but held that in the case before the court the power of disposal was not absolute; that the words “ and intes[619]*619tate ” so limited the power that it could only be exercised in the mode prescribed, i. e., by will, and that this was such a restriction that it could not be presumed that the testatrix, by creating the power, intended to give an absolute estate. On the contrary, these “ qualifications and additions were annexed to the devise to limit what would otherwise have been an absolute interest.” On this ground it reversed the decree, and construed the devise to give a life estate only to E. E.'A., and that on her dying without issue and intestate, the executory devise over operated.

The case stands as the law of this state to establish the construction that where there is a devise in terms in fee, with a limitation over on the death of the devisee without issue and intestate, the power of disposition is limited to be exercised by the making of a will, and this is such a restriction of the power that the intention of the testator will be deemed to be to give a life estate only, with an added, though distinct and separate, power of disposition by will.

The declaration of Mr. Justice Eandolph (at p. 642), that words conferring a power of disposal will be held to give a mere .power, not only where an estate for life is given in express words, but also where the life estate arises by necessary implication or construction, was subsequently disapproved of in Downey v. Borden, 7 Vr. 468, by the court of errors, but the general rule of construction in this state of such devises, as established in Kent v. Armstrong, was fully accepted and declared by that court in the case of Cantine v. Brown, 17 Vr. 601.

The same rules of construction declared in the above-cited New Jersey cases are held to be equally applicable to bequests of personal estate and to devises of real estate. Pratt v. Douglas, 11 Stew. Eq. 516; Wooster v. Cooper, 8 Dick. Ch. Rep. 683.

Applying the law as declared in these cases to the construction of the devise to Elizabeth Fabian (the mortgagor) in the will of Nicholas Fabian, the subject-matter of the gift is found to be the house, the furniture &c. These things themselves are given, not merely the use and enjoyment of them.

Neither the words of the gift nor any other expressions in the [620]*620will indicate any intention to give Elizabeth a life estate only. No limitation of the estate given her is expressed, either as to the time of enjoyment or the character or the quantity of the estate devised. The limitations over do not in any way define the estate given to Elizabeth. I think it must be held that the estate of Elizabeth in the property given, as expressed in the words of the will, is general and indeterminate, and the terms of the power of disposition must be examined to define it.

Upon examining the power of disposition, the house, lot and furniture &c. appear to be given to Elizabeth to use and occupy, or to dispose of “ as she may think proper.” There is no prescription as to the time when, or during which, or the manner in which, Elizabeth shall exercise this power. She had an unrestricted power to dispose of the property as she might think proper, and no direction as to what disposition she should make of the proceeds arising from her exercise of the power. The provision for the maintenance and education of the children is contingent upon the wife’s dying before' the majority of the youngest surviving, and, even if valid, would affect only the income which might be received from the property, and not the proceeds from any disposition made of the property.

In Mixon v. Oliver, 13 Ves. 108, there was a gift to a wife, to be disposed of as she thinks proper; ” the power was held to be unlimited and to vest a fee. The same ruling was declared as to the words “to be at the disposal of my wife * * * to whom she shall think fit to give the same,” in Robinson v. Dusgale, 2 Vern. *182. The rule thus early declared in England has been followed in this state, and a gift “ to my beloved wife” of “ one-third of all my estate * * * for to dispose of as she may see proper,” was held, in Downey v. Borden, ubi supra, to be an indeterminate devise of the third and the power of disposition to be unlimited ; so that a fee vested in the wife, though the power was not exercised and she died intestate, and the fee-simple estate of her heirs therein by descent from her, was sustained. In

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Bluebook (online)
54 N.J. Eq. 615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benz-v-fabian-njch-1896.