Betker v. Nalley

140 F.2d 171, 78 U.S. App. D.C. 312, 1944 U.S. App. LEXIS 3894
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 24, 1944
DocketNo. 8577
StatusPublished
Cited by6 cases

This text of 140 F.2d 171 (Betker v. Nalley) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Betker v. Nalley, 140 F.2d 171, 78 U.S. App. D.C. 312, 1944 U.S. App. LEXIS 3894 (D.C. Cir. 1944).

Opinion

MILLER, Associate Justice.

Mary Catherine Nalley, a widow, in June, 1930, executed a deed in trust conveying to trustees two parcels of land in Washington, D. C., upon trusts therein declared as follows: “(a) For the use and benefit of the party of the first part during her lifetime, she to receive the entire net income therefrom, (b) To convey the said property or' <my part thereof, or any less estate, by absolute deed or by mortgage, as the party of the first part may direct, such direction to be evidenced by her joining in the conveyance and signing and acknowledging the same. (c) Upon the death of the party of the first part, unless it be otherwise disposed of in fee as provided above by paragraph lettered (b), to convey the aforesaid parcel (1) in fee simple and absolutely to Elsie Marie Nalley, daughter of the party of the first part, subject to any encumbrance that may be placed upon said property by the party of the first part, (d) Upon the death of the party of the first part, unless it be otherwise disposed of in fee as provided above by paragraph lettered (b), to sell the aforesaid parcel (2), * * * and after paying all of the expenses in connection with such sale, * * * to divide the same equally between the following named children of the party of the first part, viz, Charles Nalley, Henry Nalley, Elizabeth A. Smith, Alfred W. Nalley, Philip Nalley Bernard Nalley and Louis Nalley; * * * ” [Italics supplied] On Febru[172]*172ary 6, 1934, Mrs. Nalley and the trustees executed a second deed in trust conveying to George Rose, trustee, the same two parcels of land, described in the earlier deed, upon trusts therein declared as follows': “(a) For the use and benefit of Mary Catherine Nalley, one of the parties of the first part, during her lifetime, she to receive the entire net income therefrom. (b) To convey the said property or any part thereof, or any less estate, by absolute deed or by mortgage, as Mary Catherine Nalley, one of the parties of .the first part may direct, such direction .to be evidenced by her joining in the conveyance and signing and acknowledging the same. (c) Upon the death of Mary Catherine Nalley, one of the parties of the first part, unless it be otherwise disposed of in fee as provided above by paragraph lettered (b), to dispose of said parcels (1) and (2) aforesaid, as she, Mary Catherine Nalley, one of the parties of the first part, may by will direct, upon such terms and according to such provisions as are in said will named and set forth.” On February 23, 1934, Mrs. Nalley made a will, in which she directed her executor to sell the two parcels of land and divide the proceeds among her eight children and the children of a deceased son. She died on July 19, 1941. Thereafter, her will having been admitted to probate, appellant, one of Mrs. Nalley’s children, filed her complaint in the present case praying judgment that the second deed in trust be declared void; that no title to parcel (1) vested in the trustee, Rose, under the second deed in trust, or in Alfred W. Nalley, trustee and executor under the will of Mrs. Nalley; that Alfred W. Nalley, as surviving trustee under the first deed in trust, be directed to convey to appellant, in fee simple, the legal title to. parcel (1). Several issues of fact, presented for determination in the District Court, were determined adversely to appellant in the following findings: “The Court finds as facts that there was no evidence in any manner sustaining the following charges: (1) That the decedent, Mary C. Nalley, was on February 6, 1934 05 on February 23, 1934 feeble mentally and physically and very easily influenced; (2) that the decedent never voluntarily executed the deed dated February 6, 1934 or the will dated February 23, 1934; (3) that at the time of the execution of these documents the decedent was under the domination and control of the defendant, Alfred W. Nalley; (4) that the decedent did not comprehend or understand the nature of the transactions, and the Court finds as facts that on February 6, 1934 and on February 23, 1934 the decedent was of sound and disposing mind, and that the Deed in Trust of February 6, 1934 and the Will of February 23, 1934 were duly executed by the decedent free of any coersion, [sic] fraud or dominating or undue influences. And the Court finds as a fact that there was no agreement whereby the decedent agreed to devise or convey premises 531 9th Street, S. E., to plaintifif in consideration for the alleged services rendered by the plaintiff to her; and that the Deed in Trust of June 16, 1930 was not executed in consideration of the same.” This appeal followed a judgment dismissing appellant’s complaint. No issue is now presented concerning the contentions disposed of by the foregoing findings.

It remains to determine the legal effect of the first deed in trust. Appellant’s case depends upon the contention that the deed divested Mrs. Nalley of title and vested it in fee in her trustees; that appellant thereupon acquired equitable ownership of parcel (1), which ripened into an absolute and indefeasible ownership upon her mother’s death. ■ Appellees contend, first, that the deed was ineffective to create a valid trust; second, assuming a valid trust, nevertheless, the deed contained a reservation of. power to revoke, which was exercised by the execution of the second deed, thus cutting off appellant’s equitable interest and putting her upon the same footing as the other children under the will.

It is significant that no duty is specified, in the deed of June, 1930, to be performed by the trustees during the lifetime of the grantor, except to hold, the two parcels.1 Moreover, this holding was to be for her use and benefit. .' The record shows that Mrs. Nalley occupied the residence located on parcel (1) as a home continuously until her death. Presumably, [173]*173there was no duty to be performed by the trustees in connection with its management or control. In fact, the only suggestion of such a duty which can be found in the deed appears in the language of paragraph (a) : “ * * * she to receive the entire net income therefrom.” This suggests the possibility that the trustees were to manage parcel (2), collect the rents and distribute the net income therefrom to the grantor. But even this possibility is not supported by the other provisions of the deed. It is apparent that Mrs. Nalley intended to retain management and control of the property as well as power to alienate it.2 She reserved power (1) to encumber it;3 (2) to direct the conveyance of the whole property or any part thereof, or any less estate therein, without any power in her trustees to refuse to act upon her direction or to prevent, limit or control her direction; (3) to join in any such conveyance by signing and acknowledging the same. Her trustees were, in fact, mere agents with very limited powers.4

The only thing the grantor parted with irrevocably was the remainder of the trust property, if there should be any remainder after her death; and the only possibility that any discretion or power might have to be exercised by her trustees after her death arose from the possibility that she might elect not to dispose of the entire trust property before her death. Even in that event they were to be mere channels through which title would flow for the purpose of distribution.5 It seems obvious, therefore, that the deed of June, 1930, was ineffective to create a trust. Instead, it was, and was intended to be, merely testamentary in character.6

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Cite This Page — Counsel Stack

Bluebook (online)
140 F.2d 171, 78 U.S. App. D.C. 312, 1944 U.S. App. LEXIS 3894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/betker-v-nalley-cadc-1944.