Estate of Bunn

206 P.2d 635, 33 Cal. 2d 897
CourtCalifornia Supreme Court
DecidedMay 27, 1949
DocketL. A. No. 20748
StatusPublished
Cited by45 cases

This text of 206 P.2d 635 (Estate of Bunn) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Bunn, 206 P.2d 635, 33 Cal. 2d 897 (Cal. 1949).

Opinion

33 Cal.2d 897 (1949)

Estate of SALLIE H. BUNN, Deceased. MARGARET BUNNELL et al., Petitioners and Respondents; FRED WOODWORTH et al., Legatees and Respondents,
v.
BANK OF AMERICA NATIONAL TRUST & SAVINGS ASSOCIATION, Appellant.

L. A. No. 20748.

Supreme Court of California. In Bank.

May 27, 1949.

Heller, Ehrman, White & McAuliffe, Lloyd W. Dinkelspiel and Lawrence C. Baker as Amici Curiae on behalf of Appellant.

Laurence Phillips for Petitioners and Respondents.

William N. Parker and Fleming & Boyce-Smith for Legatees and Respondents.

EDMONDS, J.

The testamentary provisions made by Sallie H. Bunn specified that the residual estate should be "sold and given to a worthy charity selected by my executors." In a proceeding to establish heirship, it was determined that no valid charitable trust was thereby created and distribution of the property was ordered according to the rights of succession. The appeal by the executor presents for decision only the question as to the validity of the disposition to charity.

Harry Bunn, the husband of the testatrix, lived only about one month after her death and she left no lineal heirs. Her holographic will, with three codicils, was admitted to probate by an order which also appointed Bank of America National Trust and Savings Association executor.

In a proceeding to determine heirship, Mr. Bunn's administrator and 24 of his wife's collateral heirs claimed the residue of the estate, which amounts to about $35,000. The decree in their favor distributes one-half of the property to the husband's administrator and the remainder to the other claimants.

The will included the following: "At Harry's death, I want everything I have sold and given to a worthy charity, selected by my executors." The first codicil reiterates this provision by declaring: "As I have already stipulated, I want everything at Harry's death sold and given to a worthy charity." One of the other two codicils, both of which bear the same date, *899 states: "I want my silver to be given my nieces and what is left given to charity by my Executor."

The appellant argues that these provisions are sufficient to create a valid charitable trust of which it is trustee. The respondents take the position that: (1) an executor is not entitled to appeal from a decree distributing property; (2) there was no intent to create a trust; (3) the attempted gift to charity is void under section 41 of the Probate Code; and (4) the designation of a beneficiary is too vague and indefinite to create a valid trust.

[1] The first point of the heirs is based upon the assumption that the bank is prosecuting the appeal in its capacity as executor and they rely on authorities holding that an executor may not attack a decree of distribution. However, throughout the proceedings in the probate court, the bank retained separate counsel and studiously distinguished between its capacities as executor and as trustee. The appeal was taken by the bank as "the party asserting the right to act as Trustee under such will," and a trustee has the right to appeal from an order or judgment affecting the existence, modification or termination of a trust. (Estate of Ferrall, ante, p. 202 [200 P.2d 1]; Fletcher v. Los Angeles Trust & Sav. Bank, 182 Cal. 177 [187 P. 425].) Such an attack "is not one involving the conflicting interest of beneficiaries or others, under the terms of the trust, but one going to the very existence of the trust itself. It is not only the right of the trustee to protect the trust estate, it is its duty as well. If the ... [contestant of the dispositive provisions] be correct the entire plan of the deceased as declared in her will is destroyed." (Estate of Hubbell, 121 Cal.App. 38, 40 [8 P.2d 530].)

The respondents argue that as there has been no distribution of the corpus to the alleged trustee, the bank does not come within this rule. But if there is a valid trust, it was created by the testator and not by any order of the probate court. If the decision of the probate court is correct, then there is no trust and the bank has no trust to administer. If, on the other hand, the will created a valid trust and the decree is erroneous, the bank is a party aggrieved by the adverse order and is entitled to appeal from it. The issue as to the bank's status, therefore, goes to the merits of the case and cannot be determined preliminarily upon a procedural point.

[2] It is next urged by the respondents, particularly the collateral heirs and distributees, that Mrs. Bunn had no intent *900 to create a trust in this case and all that is involved is the validity of an attempted direct bequest to an unspecified charity. From this, it is argued, there was an invalid attempt to delegate testamentary power. The contention is without merit. Whether a direct bequest or a trust has been created by the provisions of a will is entirely a question of the intention of the testator as derived from the language used; no particular words or phrases are necessary for the creation of a trust. (Estate of McDole, 215 Cal. 328 [10 P.2d 75]; Estate of Shaw, 198 Cal. 352 [246 P. 48]; Kornbau v. Evans, 66 Cal.App.2d 677 [152 P.2d 651]; Estate of DeMars, 20 Cal.App.2d 514 [67 P.2d 374].) Mrs. Bunn named the bank as executor and then provided that the residue of her estate, after the death of her husband, should be sold and the proceeds given to a charity to be selected by her executor. Thus, there is an express subject, purpose and beneficiary of the trust in addition to the existence of a trust intent which appears from the nature of the devise (Civ. Code, 2221) and a specific designation of the bank as trustee.

[3] The respondents' third contention is that under the provisions of section 41 of the Probate Code, which restricts charitable bequests, the trust, if valid, may be sustained only as to one-third of the estate. In answer to this argument, the bank relies upon section 43 of the Probate Code which declares that "[n]othing in this article contained shall apply to bequests or devises made by will executed at least six months prior to the death of the testator who leaves no spouse, child, grandchild or parent ...." and the undisputed evidence shows that the will and each of the codicils were executed well over six months before Mrs. Bunn's death.

Although the question as to who may assert the invalidity of a dise or bequest subject to the provisions of section 43 of the Probate Code has not been directly decided by the appellate courts of California, under the authorities in other jurisdictions the respondents cannot do so because they are not members of the designated class. "The prohibition contained in the statute is a limitation upon the right of a testator to dispose of his property in accordance with his own inclinations and desires. It should, therefore, be strictly construed against those seeking to invalidate testamentary provisions." (In re Plaster's Will, 266 App.Div. 439 [43 N.Y.S.2d 1, 3].) The Iowa Supreme Court considered hypothetically the situation here presented. "If such designated parties do not challenge the bequest to charity, it does not lie in the *901 mouth of any other person to challenge it. It may often happen that a testator will make a bequest to charity ...

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206 P.2d 635, 33 Cal. 2d 897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-bunn-cal-1949.