Equitable Trust Co v. McComb

168 A. 203, 19 Del. Ch. 387, 1933 Del. Ch. LEXIS 59
CourtCourt of Chancery of Delaware
DecidedJuly 27, 1933
StatusPublished
Cited by8 cases

This text of 168 A. 203 (Equitable Trust Co v. McComb) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equitable Trust Co v. McComb, 168 A. 203, 19 Del. Ch. 387, 1933 Del. Ch. LEXIS 59 (Del. Ct. App. 1933).

Opinion

The Chancellor:

In the view I take of this case, it is unnecessary for me to express my views upon certain questions which have been raised and extensively argued upon one of the briefs.

The question propounded by the complainant upon which it seeks to be instructed arises out of the wills of Henry S. McComb and his son, James C. McComb.

Henry S. McComb died December 30, 1881. He left a will by .which he created a trust for the benefit of his son, James C. McComb, for life and after his death the corpus was to be conveyed to such person as James should appoint, in default of appointment to the child or children that might survive him or to their issue and in the event no child or children or the issue of such survived him, then to the testator’s heirs or distributees as in case of intestacy.

Jarileá C. McComb died August 28, 1931. He left a will by which he disposed inter alla of the estate over which his father had given him a power of appointment. He undertook to do this by devising and bequeathing an equal [389]*389one-third share thereof in trust for each of his three children for life. The children were two daughters and one son. Upon the death of any child, he directed that the share of such deceased child should be conveyed absolutely to his or her child or children, or the issue of any such as might be deceased upon the arrival of the youngest child or issue of such at the age of twenty-one years; in the event of the death of any child without issue, cross-remainders to the survivor or survivors and their issue; and in case all the children died without issue, then to the testator’s heirs as on intestacy.

The question presented here has to do with the share of Henry S. McComb, II, son of James C. McComb. The son was born August 22, 1882. It is contended by his solicitors that the remainders over after his death are void because they are offensive to the rule against perpetuities, and that because of the rest of his father’s will, which I have not seen fit to set out, he is entitled to have conveyed to him immediately the entire share set apart for him absolutely, free of all trusts. He has made demand upon the complainant as trustee to that effect.

The other parties who have filed briefs contend, that the will of James C. McComb in conjunction with his father’s does not violate the rule against perpetuities and that the property held in trust for Henry S., II, for life, etc., should not be released from the trust.

Since the estate limited to Henry S., II, by James C. is conferred by virtue of a power of appointment created by Henry S., the elder, it is, for the purpose of testing whether the rule against perpetuities has been violated, as though the limitations made by James C. had been made by his father, Henry S., the elder. Equitable Trust Co. v. Snader, 17 Del. Ch. 203, 151 A. 712.

Now it is at this point that an important fact needs to be emphasized—a fact which is the focal one in the argument which has been presented at the bar and on the [390]*390briefs. The fact referred to is that Henry S. McComb, II, was not living when his grandfather, Henry S., died. As stated, the grandfather died December 30, 1881, and his grandson, Henry S., II, was born August 22, 1882, a period of two hundred and thirty-five days after the death of his grandfather. Was Henry S., II, in esse at the time of his grandfather’s death when the latter’s will took effect? If he was not, then plainly an attempt by Henry S., the elder, to limit estates to the children and issue of his nonexisting grandson would be in violation of the rule against perpetuities. The offense would be that he had taken the estate out of commerce for a longer period than a life or lives in being and twenty-one years thereafter. If therefore Henry S., II, was not in the contemplation of the law in being on December 30, 1881, the limitations over after his death are void. This is because the paradox prevails, that what James C. McComb, the immediate testator, expressed as his wish is to be taken by relation back as the expressed disposition of his father Henry S., the elder, the creator of the power.

But if Henry S., II, is considered by the law as in being on December 30, 1881, notwithstanding his delivery from his mother’s womb did not occur until two hundred and thirty-five days later, then the limitations over to his children after his death are not offensive to the rule, because in that case the ultimate estates must vest, without any possibility otherwise, within a life in being, viz., Henry S., IPs, and twenty-one years thereafter.

Now this brings me down to the question that is determinative of the case according as it is answered one way or the other. The question is whether the gift made by Henry S. McComb, the elder, to the children of his unborn grandson, which the law in the retrospect considers him to have made, is a gift that falls under condemnation as a technical perpetuity. The limit beyond which the vesting of an estate may not be postponed and thereby taken out [391]*391of commerce, is commonly stated as being not later than twenty-one years after some life or lives in being. Equitable Trust Co. v. Snader, et al., 17 Del. Ch. 203, 151 A. 712. The twenty-one year period came to be a period in gross, added by the courts, in extension of the period measured by a life or lives in being. Originally, however, it appears to have been a period added simply to cover minority, it being considered that no harmful consequences could ensue from such an extension because of the incapacity of minors to convey before reaching majority. Finally, however, it became settled by the House of Lords in Cadell v. Palmer, 7 Bligh, N. S. 202, 5 Eng. Reprint 745, that the term of twenty-one years need have no reference to the minority of the devisee, and that it should be allowed as an additional period in gross.

It was long ago determined, and has never since been questioned, that for the purposes of the rule a child in ventre sa mere is to be regarded as a life in being; and so in recognition of that principle we find it frequently stated in judicial pronouncements that the period of gestation, usually stated as nine months, is to be added to the life or lives in being. But I do not understand it ever to have been held that a period of gestation measured by a definite number of months or days is to be regarded as a period to be added in gross, similar to the twenty-one year period. The reason for its allowance is such as to indicate otherwise, for it is to be remembered that a child in course of gestation is regarded by the law as in esse for the purpose of the rule, and hence the only reason for taking any notice of the period of gestation is to inquire whether a life, or one of the lives, during which the right of alienation is postponed, is in being. In Cadell v. Palmer, supra, it appears to have been expressly decided that a number of months equal to the “ordinary (or longest) period of gestation” is not to be added in gross and that the period of gestation is to be allowed only when the gestation exists.

[392]*392The solicitors for Henry S. McComb, II, strongly depend on the last stated proposition, that is to say that the period of gestation is to be allowed only to' the extent that it actually exists, as the starting point of their principal argument.

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Cite This Page — Counsel Stack

Bluebook (online)
168 A. 203, 19 Del. Ch. 387, 1933 Del. Ch. LEXIS 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equitable-trust-co-v-mccomb-delch-1933.