Commonwealth v. Montgomery Trust Co.

50 Pa. D. & C. 282, 1943 Pa. Dist. & Cnty. Dec. LEXIS 147
CourtPennsylvania Court of Common Pleas, Montgomery County
DecidedMarch 3, 1943
Docketno. 27
StatusPublished

This text of 50 Pa. D. & C. 282 (Commonwealth v. Montgomery Trust Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Montgomery County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth v. Montgomery Trust Co., 50 Pa. D. & C. 282, 1943 Pa. Dist. & Cnty. Dec. LEXIS 147 (Pa. Super. Ct. 1943).

Opinion

Knight, P. J.,

The Pennsylvania Department of Revenue filed its petition for an order upon the Montgomery Trust Company, trustee under the will of Ephraim Keyser, for past, present, and future maintenance of Elsie Hoepfl (a beneficiary of a trust under said will), who is confined in the Norris-town State Hospital. An answer was filed by the trustee, and the case was argued before the court en banc. The facts, as they appear in the petition and answer (no depositions having been taken), are as follows:

Ephraim Keyser died on July 11, 1930, leaving a will, subsequently probated, by which he gave to his daughter Elsie Hoepfl a one-ninth share of the residue of his estate, and providing further:

“Third. The shares of my daughters, Sallie and Elsie, shall be placed in the Montgomery Trust Company, which I appoint as trustee for them, during their lifetime; they to receive the interest of their respective [284]*284shares at regular intervals and of the principal if necessary by reason of sickness. The balance to be divided among their respective issue, or among my other children or their issue, if no issue survives or is left.”

Elsie Hoepfl was admitted to the Norristown State Hospital in January 1930 (prior to testator’s death) and has as guardian of her estate the Norristown-Penn Trust Company.

As of March 31, 1942, the Commonwealth had expended the sum of $2,519.62 for the support and maintenance of Elsie Hoepfl in the State hospital, and from April 1, 1942, on further sums will accrue. Its claim is based on section 4 of the Act of June 1, 1915, P. L. 661, as amended by the Act of April 25, 1929, P. L. 704, which provides, in part:

“The court of common pleas of the county of the residence of any inmate of a State-owned mental hospital, or any . . . other institution wherein said inmate is maintained in part by the Commonwealth of Pennsylvania, shall, upon the application of the Department of Justice, acting on behalf of the Department of Revenue, make an order for the payment of maintenance to the Commonwealth, upon the trustee, committee, guardian, or other person who has charge of the estate of any such inmate . . .”

The trustee objects to the petition on the grounds that:

1. The principal of the trust does not constitute an estate belonging to the inmate within the meaning of the act;

2. The jurisdiction over .this testamentary trust should lie in the orphans’ court, from which court the trustee will be entitled to receive its discharge upon the completion of its duties;

3. The language of the will must have meant an “illness” other than that requiring the confinement of the beneficiary in a State hospital, as she had been so [285]*285confined for at least six months prior to the death of the testator; and

4. Remaindermen or possible unborn interests should be represented.

Taking up these objections in order, it seems clear that the courts have always considered such trust funds the “estate” of the beneficiary in applying the provisions of the Act of 1915, supra. Orders have been made in exactly similar cases, and in cases where the trustee has been vested with discretion to make payments from principal; and even when the will contained spendthrift provisions: Walters’ Case, 278 Pa. 421 (1924). There the court held that there is an implied contract to repay a sum expended for support by the State, that the trustee’s discretion is only a legal one, and that whenever the law determines that a trustee’s discretion should be exercised in a particular way he will be constrained to act in accordance therewith. See also Cronin’s Case, 326 Pa. 343 (1937), and Hohenshieldt’s Estate, 105 Pa. Superior Ct. 18 (1932).

In none of the cases examined does it appear that it was contended that the Act of 1915 did not confer a new jurisdiction upon the court of common pleas. The act is certainly specific in its language, and if the Commonwealth chooses the court of common pleas in which to apply we do not feel that it would be proper to insist that the claim be presented originally in the orphans’ court. In the view we take of this case, this court can adjudicate the claims and declare the debt due, and the orphans’ court, upon the audit of the trustee’s accounts, can make suitable provision for payment, after allowance of necessary commissions, fees, and expenses. We do agree that the trustee is entitled to have the orphans’ court pass upon its administration of the trust.

The third objection, that this was not such an “illness” as was contemplated by the testator, is without merit. The trustee argues that the will speaks as of [286]*286the date of decedent’s death, when the beneficiary was already confined. It may just as appropriately be argued that the will was written before such confinement, and the testator may have contemplated such an “illness”.

The last objection, that remaindermen and possible unborn interests are not parties, cannot be sustained. When the trustee has the power (presumably with the exercise of its discretion), the law says how that discretion must be exercised, as was pointed out in Walters’ Case, supra.

As the accumulated indebtedness as of March 31, 1942, is much greater than the amount of principal and income in the hands of the trustee, we do not feel it necessary to deal with the amounts accruing thereafter.

We are of the opinion that it was not necessary to obtain an order in this court, but an award could have been made in the orphans’ court, in which court defendant could have been cited to file an account by plaintiff: Harnish’s Estate, 268 Pa. 128; Geisler’s Estate, 76 Pa. Superior Ct. 560. We are, however, of the opinion that under the Act of 1915, supra, this court has jurisdiction to adjudge the amount due the Commonwealth, and also the liability of the defendant. This is all we propose to do, and further proceedings to collect the amount must be taken in the orphans’ court.

And now, March 3,1943, for the reasons given in the foregoing opinion, it is ordered, adjudged, and decreed as follows:

The prayer of the petition is granted, and it is adjudged that Montgomery Trust Company, as trustee for Elsie Hoepfl, under the will of Ephraim Keyser, deceased, is indebted to the Pennsylvania Department of Revenue in the' sum of $2,519.62, as of March 31, 1942, for maintenance and support advanced by the Commonwealth for the benefit of the said Elsie Hoepfl while confined in the Norristown State Hospital.

[287]*287 Petition for leave to-intervene and for reargument'

September 21, 1943. — On October 26, 1942, the Department of Revenue of the Commonwealth presented a petition under the provisions of the Act of June 1, 1915, P. L. 661, as amended, praying this court to make an order on the Montgomery Trust Company, trustee for Elsie Hoepfl under the will of Ephraim Keyser, deceased, for the past, present, and future maintenance of the said Elsie Hoepfl as a patient in the Norristown State Hospital.

On March 3, 1943, this court entered a decree upon said petition, in which it was adjudged that the Montgomery Trust Company, trustee as aforesaid, is indebted to the Pennsylvania Department of Revenue in the sum of $2,519.62, as of March 31, 1942, for the maintenance and support of Elsie Hoepfl in the Norristown State Hospital.

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Related

Cronin's Case
192 A. 307 (Supreme Court of Pennsylvania, 1937)
Short v. Board of School District
165 A. 669 (Superior Court of Pennsylvania, 1932)
Estate of Elizabeth Hohenshieldt
159 A. 71 (Superior Court of Pennsylvania, 1931)
Elwyn's Appeal
67 Pa. 367 (Supreme Court of Pennsylvania, 1871)
Commonwealth v. Baum
95 A. 662 (Supreme Court of Pennsylvania, 1915)
Arnold's Estate
98 A. 701 (Supreme Court of Pennsylvania, 1916)
Harnish's Estate
110 A. 761 (Supreme Court of Pennsylvania, 1920)
Walters' Case
123 A. 408 (Supreme Court of Pennsylvania, 1924)
Geisler Estate
76 Pa. Super. 560 (Superior Court of Pennsylvania, 1921)

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Bluebook (online)
50 Pa. D. & C. 282, 1943 Pa. Dist. & Cnty. Dec. LEXIS 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-v-montgomery-trust-co-pactcomplmontgo-1943.