Crichton v. Succession of Gredler

220 So. 2d 714, 1969 La. App. LEXIS 5340
CourtLouisiana Court of Appeal
DecidedMarch 3, 1969
DocketNo. 11169
StatusPublished
Cited by3 cases

This text of 220 So. 2d 714 (Crichton v. Succession of Gredler) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crichton v. Succession of Gredler, 220 So. 2d 714, 1969 La. App. LEXIS 5340 (La. Ct. App. 1969).

Opinion

AYRES, Judge.

Mrs. Kate Crichton Gredler, by last will and testament, created trust estates in favor of her nephews Thomas Crichton, III, and John Hayes Crichton as principal beneficiaries, with their father, testatrix’ brother, Thomas Crichton, Jr., as trustee. This attack upon the will by Powell Crichton, Jr., and Mrs. Gloria Crichton McGehee, also a nephew and a niece of the testatrix, is primarily based upon the contention that the will contains prohibited substitutions. The defense consists of a denial that the will contains such substitutions and, in the alternative, that the Trust Code, LSA-R.S. 9:1721 et seq., and particularly Section 1723, authorizes dispositions made in trusts though they would contain prohibited substitutions if they were made free of trusts.

The defendants in addition to the above-named trustee and principal beneficiaries are Thomas Crichton, IV, Scott Jackson Crichton, Kate Curry Crichton, Anne Bernard Crichton, Lili Crichton, and John Hayes Crichton, Jr., children of the named principal beneficiaries, who come within the category of second named or alternative principal beneficiaries under the will, Kate Crichton and Edward Bailey Crichton, half sister and half brother of plaintiffs, who, together with plaintiffs, are legal heirs and ultimately named alternative and successive principal beneficiaries.

On trial, the validity of the will was upheld and plaintiffs’ demands were rejected. This appeal followed.

Appellants assert on this appeal that the trial court erred in failing to hold that decedent’s last will and testament was not void for one or more of the following reasons: (1) the will contains prohibited substitutions; (2) it attempts to suspend the vesting of legacies; and (3) it names [716]*716as beneficiaries persons who were neither ascertainable nor necessarily in being at the time of the death of the testatrix.

The will is an olographic testament dated March 6, 1963. After revoking all prior wills, naming Thomas Crichton, Jr., executor without bond, and providing for payment of debts, expenses and taxes, the testatrix proceeded to set forth the disposi-tive terms of her will as follows:

“ * * * and I do hereby give and bequeath to the said Thomas Crichton jr. as trustee for the benefit of his two sons, my nephews, Thomas Crichton third, and John H. Crichton, all the rest, residue and remainder of my property, both real and personal, except my residence with contents therein located on Creton Lake Road in the town of Bedford, County of Westchester, State of New York, and except also all moneys now to the credit of my account in the First National City Bank of New York (Mt. Kisco branch), shall thereafter be held in an undivided one-half interest in each of the aforementioned two trusts, each trust created and named for its above named beneficiary, and both trusts shall be Louisiana trusts, administered in the State of Louisiana, in accordance with the laws of Louisiana — I appoint Thomas Crichton jr., my brother, Trustee of each of above named trusts. In the event that Thomas Crichton jr. should die, become incapacitated or refuse to act, prior to the termination of these trusts, then the First National Bank of Shreveport, Louisiana, shall become Trustee. The Trustee, Thomas Crichton jr., shall have full powers to sell, mortgage, or lease all property, and otherwise manage all trust property with the same control and freedom as though Trustee owned said property personally.
“In the event that either beneficiary, Thomas Crichton third or John Hayes Crichton be not living when this trust is terminated, both income and corpus of such said trust shall be paid over or conveyed by Trustee to the child or children of said deceased beneficiary in equal, undivided portions. In event that neither a beneficiary nor his child or children are living upon the termination of this trust, then said income and corpus shall be paid over or conveyed by the Trustee to the other trust beneficiary or, if he be not living, then to his child or children in equal or undivided portions. In the event that neither beneficiary, no [sic] any of their children be living upon termination of these trusts, as above herein set forth, then the income and corpus of these trusts shall be paid over or conveyed to those children of my deceased brother, Powell Crichton; namely, Powell Crichton jr., Kate Crichton, Edward B Crichton and Gloria Crichton McGehee in equal or undivided portions.”

Reduced to essentials, therefore, the will creates two trusts for the decedent’s nephews, each comprising one-half of the estate. A trustee and a successor trustee are named and are given powers of administration. The intention is then expressed that upon the termination of each trust, if the named beneficiary thereof is not living, the trust property is to be delivered to the child or children of the deceased beneficiary, and, in the absence of a living child or children, to successively named alternate beneficiaries.

Under the basic laws of this State, the Constitution and Civil Code, substitutions are prohibited except as permitted by the laws relating to trusts. Under Louisiana Constitution Art. IV, § 16, granting authority to the Legislature to create trusts, it is provided: “Substitutions not in trust are and remain prohibited, but trusts may contain substitutions to the extent authorized by the Legislature.” (Emphasis supplied.) To the same effect are the provisions of LSA-C.C. Art. 1520 which prescribe that “Substitutions are and remain prohibited, except as permitted by the laws relating to trusts.” (Emphasis supplied.) This article provides, further, that “Every disposition not in trust by which the donee, the heir, [717]*717or legatee is charged to preserve for and to return a thing to a third person is null, even with regard to the donee, the instituted heir or the legatee.”

The essential .elements of a prohibited substitution are that the donee or legatee is charged to keep the property during his lifetime for another person to whom it is to be delivered at the death of the first donee or legatee. Thus, the prohibited substitution is an attempt on the part of a donor or testator to vest the title in his donee or legatee without the right of alienation or testamentary disposition or the capacity to transmit it to his heirs. The objection to the substitution is that, during the lifetime of the donee or legatee, neither he nor the person designated to acquire the title at the death of the donee or legatee can alienate the property, and the law prohibits, as a matter of public policy, the keeping of property out of commerce indefinitely and complicating the simple tenures by which alone its ownership is permitted.

These principles were emphasized by the late Chief Justice O’Neill in Succession of Reilly, 136 La. 347, 67 So. 27, 32 (1914), wherein it was observed:

“The essential elements of the prohibited substitution are that the immediate donee is obliged to keep the title of the legacy inalienable during his lifetime, to be transmitted at his death to a third person designated by the original donor or testator. * * * A substitution is an attempt on the part of the donor or testator to make a testament for his donee or legatee along with his own will, and to substitute his own will for the legal order of succession from his donee or legatee.

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

Related

Crichton v. Succession of Gredler
235 So. 2d 411 (Supreme Court of Louisiana, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
220 So. 2d 714, 1969 La. App. LEXIS 5340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crichton-v-succession-of-gredler-lactapp-1969.