Cary v. Carman

116 Misc. 463
CourtNew York Supreme Court
DecidedSeptember 15, 1921
StatusPublished
Cited by6 cases

This text of 116 Misc. 463 (Cary v. Carman) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cary v. Carman, 116 Misc. 463 (N.Y. Super. Ct. 1921).

Opinion

Benedict, J.

This is an action by a substituted trustee to have an account of his proceedings taken and judicially settled and distribution of the trust estate directed.

The trust was created by Maria M. Cary, by a deed, dated May 22, 1862, to Isaac H. Cary (not the plaintiff), whereby she conveyed to him all the property derived by her from the estate of her deceased brother, William H. Cary, to hold in trust and after payment of expenses to pay one-half of the income to the grantor, one-fourth to Susanna Elizabeth Cary and one-fourth to Eliza Prentice Cary, nieces of the grantor and daughters of the trustee, during their respective lives, and at the.death of each beneficiary to convey a like proportion of the trust property to her heirs at law. Power of sale of the trust property was also vested in the trustee.

At the time of this trust deed, the grantor, or settlor, [466]*466the trustee, and the two beneficiaries other than the settlor resided in Massachusetts. William. H. Cary, the deceased brother of the settlor, had resided in Brooklyn, N. Y., and the property which came into the hands of the trustee under the deed consisted of real property located in New York, and personal property having its actual situs in this state.

The trustee named in the deed of trust accepted the trust and continued to act until his death in Massachusetts on May 22, 1881. , Thereafter the plaintiff in this action was appointed substituted trustee by an order of this court dated January 12, 1882.

Maria M. Cary, the settlor and one of the beneficiaries, married one Hastings and thereafter died on August 22,1887. She left no husband and no children, and her only heirs at law were the plaintiff, the defendants Horace B. Webster, Grace Cary Powell, Mary A. Carman, and Susanna Elizabeth Cary and Eliza C. Farnum (formerly Eliza Prentice Cary), the two remaining life beneficiaries under the trust deed, both since deceased.

After the death of Maria M. Cary Hastings, all the trust property was, by consent of all parties in interest, sold, except the premises 193-201 Fulton street, in the then city of Brooklyn, and one-half of the trust estate was thereupon separated and distributed. The other half, consisting of the said Fulton street premises, and the remaining personalty, the trustee continued to hold and administer for the benefit of the two surviving beneficiaries.

Susanna Elizabeth Cary, one of the beneficiaries, never married and died a resident of Massachusetts, on May 3, 1913, leaving as her only heir at law her sister, said Eliza Prentice Cary Farnum. Thereafter one-half of the then trust property was separated and paid over to Mrs. Farnum, the sole heir at law of Sus[467]*467anna Elizabeth Cary, and the remaining half, consisting of said Fulton street premises, valued at $62,000 and $19,000 in cash, the substituted trustee continued to hold and administer for the benefit of the surviving beneficiary, Eliza Prentice Cary Farnum. She, as already intimated, had become married to one Farnum, and died, a resident of New York, on February 17, 1918, leaving no husband and no issue, her heirs at law being plaintiff and the defendants Mary A. Car-man, Horace B. Webster and Grace Cary Powell, heirs on her father’s side, and the defendants, Grace S. Ballou, Susie Hidden, H. Cary Pratt, Edwin E. Pratt, Ruth P. Kimball, Annie Gould, Charles N. Pratt, William W. Burr, Alice May Fisher, Carrie Dorr, Grace N. Whiting, Katherine Lee, Bernard W. Lee, Clifton Lee and Alice T. Tabor, heirs on her mother’s side.

In the meantime, after the death of Maria M. Cary Hastings and prior to the death of Susanna Elizabeth Cary, certain improvements of a permanent nature had been made in the said Fulton street premises, which was then subject to a mortgage of $12,000. Apparently some of the personalty and perhaps some of the income was used for this purpose.

The trustee raises a question as to the validity of the trust deed, on the ground that it may. have created an unlawful perpetuity. There can be no question but that the trust deed created three separate trusts, one for each life beneficiary, each to continue for only one life in being. This is true, although there was no direction to separate the corpus into three parts, because upon the death of- each beneficiary her proportionate share of the corpus was freed from the trust, and became alienable. So that the interests of the beneficiaries were separate, although the trust property was to be administered in solido. Vander[468]*468poel v. Loew, 112 N. Y. 167; Locke v. Farmers’ Loan & Trust Co., 140 id. 135, 143-145; Matter of Colegrove, 221 id. 455. The trust was, therefore, valid under the statute law of this state, and under the common law of Massachusetts, presumed, in the absence of proof to the contrary, to be the same as the common law of this state.

The question of the effect of the trust deed upon real property situated in this state must, of course, be determined by the laws of this state. The result is that upon the death of Mrs. Farnum the trust terminated as to the Fulton street premises, and title in fee at once vested in her heirs at law, without any conveyance or other act on the part of the trustee. Real Prop. Law, §§ 92, 93, 109; Watkins v. Reynolds, 123 N. Y. 211; Townshend v. Frommer, 125 id. 446, 461; Cutler v. Winberry, 179 App. Div. 221, 227. Such title vested either absolutely, or subject to the exercise of the power of sale contained in the trust deed, if such power survived the termination of the trust on the death of Mrs..Farnum. See Cussack v. Tweedy, 126 N. Y. 81. It is unnecessary to determine whether the power survived; for it has not been executed, and being discretionary, its execution cannot be compelled. It follows that the court cannot in this action direct a sale of the real property, either by the trustee or otherwise, except by consent of all the parties. It is believed, however, that the court can in this action determine in whom and in what proportions title to the real property has become vested, both because the parties have requested that the court determine that question, and because its determination is necessary as an incident to the distribution of the rents which the trustee has collected since the death of Mrs. Farnum.

If the parties having an interest in the real estate [469]*469in order to save the expense of a partition suit wish to have the property sold and distribution of the proceeds made under the direction of the court, the court will direct such sale, on the submission of a consent of all such parties in writing, duly acknowledged. The consent said to have been given on the trial is not sufficient for this purpose.

The next and most important question is who constitute the heirs at law ” of Eliza Prentice Cary Farnum. It is, of course, well settled, and I think all parties agree, that the persons entitled to take do not take as heirs of Mrs. Farnum or by inheritance from her, but that they take as remaindermen under the trust deed and as purchasers from the grantor therein named, the words heirs at law being construed merely as designating the class of persons entitled to take.

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Bluebook (online)
116 Misc. 463, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cary-v-carman-nysupct-1921.