Cross v. United States Trust Co.

10 N.Y.S. 781, 25 Abb. N. Cas. 166, 33 N.Y. St. Rep. 149
CourtNew York Supreme Court
DecidedJune 15, 1890
StatusPublished
Cited by1 cases

This text of 10 N.Y.S. 781 (Cross v. United States Trust Co.) 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
Cross v. United States Trust Co., 10 N.Y.S. 781, 25 Abb. N. Cas. 166, 33 N.Y. St. Rep. 149 (N.Y. Super. Ct. 1890).

Opinion

O’Brien, J.

This action is brought to obtain a judicial construction of certain provisions of the will of Fhebe Jane Cross, deceased, which creates certain trusts in the defendant over $700,000 of railroad mortgage bonds, now in the hands of the trust company. The testator had her domicile in Rhode Island. She made her will there, and it is in all its provisions valid by the law of that state. When the testatrix died, in 1878, her will was probated in Rhode Island, and for seven years the plaintiff executors themselves administered these trusts under the supervision of the courts of that state. It is conceded that the trusts, though valid under the laws of Rhode Island, are in part or wholly void under the laws of the state of New York., The fund, consisting entirely of personal property, is in the possession of the trust company, a New York corporation. Is the validity of the provisions of the will, as to property thus held, to be governed by the laws of this state or those of Rhode Island?

It may be stated as a general rule of law, sustained by numerous decisions, that the law of domicile governs in the disposition of personal property. In the case of Chamberlain v. Chamberlain, 43 N. Y. 424, the question was whether a charitable bequest of personal property by a citizen of New York [782]*782to a corporation of Pennsylvania, upon a trust to be administered in Pennsylvania, was void because contrary to the law of Mew York, where the testator was domiciled and the will was executed. Allen, J., in delivering the opinion of the court, says: “The law of the testator’s domicile controls as to the formal requisites essential to the validity of the will, as a means of transmitting property, the capacity of the testator, and the construction of the instrument. Personal property has no.locality, and therefore the'law of the domicile of the owner governs its transmission either by last will and testament or by succession in case of intestacy. But, if within the lex domicilii, a will lias all the forms and requisites to pass the title to personalty, the validity of the particular bequests will depend upon the law of the domicile of the legatee, and of the government to which the fund is, by the terms of the will, to be transmitted for administration, and the particular purposes indicated by the testator. Whatever may be the law of Pennsylvania, a testator domiciled in that state cannot establish by bequests of personalty to citizens or corporations of this state a charity in trust to be administered here, inconsistent with the policy or the laws of this state. * * * So far as the validity of bequests depends upon the general law and policy of the state, affecting property and its acquisition generally, and relating to its accumulation and a suspension of ownership, and the power of alienation, each state is sovereign as to all property within its territory, whether real or personal. ” This language is broad enough to apply to all testamentary dispositions of personal property, and, so considered, would work a substantial modification, if not an entire abrogation, of the well and long established rule that the law of the testator’s domicile governs the disposition of personal property, and, so considered, would be conclusive of the questions here involved. Subsequent decisions, however, expressly recognize the former cases, reannounce the original rule, and thus confine the Chamberlain Case to stated conditions. When, therefore, we take the point actually decided in that case apart from the language used, we find that the questions involved were charitable bequests and the capacity of a legatee to take. The capacity of the legatee to take must necessarily go to, and affect the validity of, a bequest. If made to one incapable of taking, the will, so far as that legacy is concerned, must fail, and such a question must be judged, not by the laws of a testator’s domicile, but by those of the legatee’s, for by the latter alone is his capacity created, limited, and defined. Applied to charitable bequests, when we recall the jealousy with which they are watched, the restrictions imposed by statute, and the disabilities and limitations placed on charitable association,, or corporations to take, the reason for the application of the rule that the law of the domicile of the legatee must govern is apparent. That the Chamberlain decision is to be thus limited is shown by the cases of Manice v. Manice, 43 N. Y. 387-389; Draper v. College, 57 How. Pr. 269; and Mapes v. Society, 33 Hun, 360. In Manice v. Manice, supra, there was a bequest by a citizen of this state of $5,000 to Yale college, to be accumulated as a trust fund for a purpose invalid under the laws of Mew York. The court, however, held the bequest effectual so far as requiring the payment of the fund to the legatee in Connecticut. As to the questions arising upon the validity of the trust, the court says: “These are questions, however, which must necessarily be determined by the courts of the state in which the corporation’s legatee is situated. The fund is to go there, and be there administered. The will of the testator, so far as the courts of this state can act upon it, is fully executed when the money is paid to the proper officer of the foreign corporation.”

In Draper v. College, supra, Justice Yan Yorst says of the bequests to the trustees of the college: “The college being legally authorized to take the gifts, the question as to the validity of the directions and conditions imposed by the testator as to holding, investing, accumulating, and applying [783]*783is for the consideration of the courts of Massachusetts, by whom their validity under the laws of that state is to be determined.” In Mapes v. Society, supra, (general term, second department,) it is said: “A testator, domiciled at the time of his death in the state of Connecticut, left a will by which he gave one-third of his residuary estate to the American Home Missionary Society. This was an association of persons organized for charitable and religious purposes, domiciled in the state of Hew York, but unincorporated at the time of the testator’s death. By the laws of the state of Hew York the bequest was void; by the laws of Connecticut it was good. Held, that the bequest was governed by the laws of Hew York, and was therefore void.” Barnard, P. J., says: “The general rule is that, while the execution of the will and the capacity of the testator, and the construction of the instrument, is governed by the law of the domicile of the testator, yet the law of the domicile of the legatee governs the validity of the bequest.” This rule, peculiarly applicable to charitable bequests, when applied to bequests to individuals with capacity to take, fails, because the reason and the foundation upon which the rule itself is supported are wanting. In the present case the beneficiaries are in law capable of taking. The property is personal. Ho charity is created by the trust. Ho principle or policy is involved which can be urged against the application of the old established rule of lex domicilii. In this connection the distinction between real and personal property must" always be observed, as clearly pointed out in White v. Howard, 46 N. Y. 144. In that case the testator was a resident of Connecticut, and Grover, J., says: “The validity Of the bequests of his personal property, and all questions of succession thereto, or rights therein, must be determined under the laws of that state and by the courts of that state.

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Bluebook (online)
10 N.Y.S. 781, 25 Abb. N. Cas. 166, 33 N.Y. St. Rep. 149, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cross-v-united-states-trust-co-nysupct-1890.