Dunwoody Estate

56 Pa. D. & C.2d 12, 1970 Pa. Dist. & Cnty. Dec. LEXIS 8
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedNovember 9, 1970
Docketno. 1441, 1958
StatusPublished

This text of 56 Pa. D. & C.2d 12 (Dunwoody Estate) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunwoody Estate, 56 Pa. D. & C.2d 12, 1970 Pa. Dist. & Cnty. Dec. LEXIS 8 (Pa. Super. Ct. 1970).

Opinions

LEFEVER, J.,

This matter comes before the court on petition and answers. Petitioner is Frank A. Bedford, 3rd (hereinafter designated “husband”). Respondents are: (a) Virginia K. Bedford, petitioner s wife at the time the petition was filed (hereinafter designated “wife”); (b) the Fidelity Bank and Richard F. Ennis, Trustees under Will of Edwin H. Dunwoody (hereinafter designated “trustees”); and (c) Judith J. Jamison, Esq., guardian ad litem for the Bedfords’ three minor children and trustee ad litem for wife’s unborn issue (hereinafter designated “the ad litem”).

The court signed a preliminary decree, dated October 30, 1969, directing the issuance of a citation to respondents. The citation was issued and responsive answers were filed.

The question before the court is whether an option granted to husband and wife to purchase 256 Beech Hill Road, Wynnewood, Pa., can be exercised by [14]*14husband alone, upon his tender of the agreed price to trustees, the title holders of the real estate covered by the option, without the joinder of wife.

Husband and wife were married on August 14, 1948. The youthful couple had just been graduated from high school. Their plans and dreams contemplated (a) husband’s entry into the College of the University of Pennsylvania and his subsequent admission to, and graduation from, law school, and (b) wife’s attendance at college. Husband’s sole income during college and law school was derived from part-time employment during the school year and full time employment during vacations. In contrast, wife was the beneficiary of the income from a substantial trust created by her great-grandfather; support allowance contributed to her by her grandfather, Edwin Dunwoody, during his lifetime, and after his death the income from the instant trust he created for her; and finally, upon her mother’s death, considerable assets she inherited from her.

In due course, husband successfully completed college and law school and was admitted to the bar; wife finished one-half year at Harcum Junior College; and three children were born, namely, Frank A. Bedford, 4th, on June 5, 1949, Suzanne H. Bedford on September 15, 1952, and Robert B. Bedford on August 23, 1956.

Husband and wife lived harmoniously in various rented apartments and houses in Philadelphia and the suburbs until July 18, 1955, when they moved into their first “own home,” located at 132 Fairview Road, Penn Valley, Lower Merion Township, Montgomery County, Pa. The land on which the house was situated and the materials for its construction were purchased by Edwin H. Dunwoody. Title was taken in Dunwoody’s name. However, much of the house was built by the [15]*15manual labor of husband who had acquired the necessary skills by working for various construction companies after school hours and during school vacations, and carpentry was his major hobby. In this building project, husband received “assistance from time to time of wife.” This house was not fully completed when they moved into it in 1955, and the unfinished work was done by husband and wife throughout the following year. The house was included as one of the assets of the corpus of the trust, created by wife’s grandfather, in his will, which provided, inter alia, that:

“ITEM FIVE: I direct my Trustees to permit my granddaughter, MARY VIRGINIA BEDFORD, and her family to use and occupy premises 132 Fairview Road, Penn Valley, Lower Merion Township, Montgomery County, Pennsylvania, if I own said premises at the time of my death and so long as she, the said MARY VIRGINIA BEDFORD, may desire. Such use and occupancy is to be without charge and if the said MARY VIRGINIA BEDFORD desires that these premises, 132 Fairview Road, Penn Valley, Lower Merion Township, Montgomery County, Pennsylvania, be sold and the proceeds invested in a different home for herself and her family the full cooperation of my Trustees is requested.”

Eventually, this house became too small (a) to accommodate the Bedfords’ expanding family and (b) to provide space for husband’s growing law practice, which required a law office, a waiting room and quarters for his secretary, all of which were squeezed into the Fairview Road Home. Both Bedfords desired to acquire a larger home which would provide appropriate facilities for their family and space for husband’s law practice; in addition, it appeared that Federal income tax advantages would accompany such an arrangement. The property at 256 Beech Hill Road, [16]*16Wynnewood, admirably suited their needs. However, the Bedfords did not have the funds with which to purchase this larger and more valuable property. They, therefore, requested trustees to assist them in accomplishing their desires. Trustees agreed to do so.

On August 19, 1959, trustees and wife filed a petition with this court requesting leave to trustees to use trust assets to purchase the Beech Hill Road property. The petition averred, inter alia, “That pursuant to Item Five of said Will, petitioner, Mary Virginia Bedford, desires that premises 132 Fairview Road, Penn Valley, Narberth, Pennsylvania, be sold and the proceeds therefrom, together with such additional trust funds as are necessary, be invested in another home as hereinafter indicated for herself and her family,” and “That the Trustees and the life tenant desire that the Beech Hill Road property be purchased as a trust investment employing funds from the sale proceeds of the 132 Fairview Road property and the remaining necessary funds from trust principal.” The petition and attached affidavits were signed by trustees and wife.

In view of the fact that under testator’s will wife’s children had a remainder interest in the trust, the court appointed Judith J. Jamison, Esq., guardian ad litem for the minor children and trustee ad litem for any unborn issue of wife. The court deliberately appointed an able female lawyer as ad litem, and directed her to investigate the legal aspects of the case, view the plan through the eyes of a married woman and then file her report and recommendation. Mrs. Jamison made a complete investigation, including physical inspection of both homes and discussing the proposed plan with wife.

Thereafter, following protracted negotiations among trustees, trustees’ counsel, the ad litem and the Bedfords and several conferences of counsel with [17]*17the court, trustees entered into tentative written agreements with the Bedfords, dated October 28, 1959, and October 30,1959, which provided, inter alia, that:

a. Trustees would purchase the Beech Hill Road property, as a trust asset, for $52,500;

b. The net proceeds of the Fairview Road property, which would be sold at auction and which, when sold, amounted to $29,280.53, were to be applied to the purchase price of the Beech Hill Road property;

c. The difference between said net proceeds and $40,000, viz. $10,719.47, was to be paid by the Bedfords;

d. The remaining $12,500 plus the settlement costs, a total of $13,439.91, were to be advanced by trustees, to be repaid by the Bedfords in quarterly installments of$300;

e. Title was to remain in trustees, but the Bedfords were to be given the option of purchasing the Beech Hill Road property at any time within 10 years for $52,500, less whatever payments, specified in subparagraphs c and d above had been made by the Bedfords;

f. In the event of wife’s death, prior to the exercise of the option, husband would pay interest at the rate of six percent per annum on the unpaid balance of the loan; and

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Bluebook (online)
56 Pa. D. & C.2d 12, 1970 Pa. Dist. & Cnty. Dec. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunwoody-estate-pactcomplphilad-1970.