Estate of Campbell

250 Cal. App. 2d 576, 58 Cal. Rptr. 723
CourtCalifornia Court of Appeal
DecidedMay 1, 1967
DocketCiv. No. 24215
StatusPublished
Cited by3 cases

This text of 250 Cal. App. 2d 576 (Estate of Campbell) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Campbell, 250 Cal. App. 2d 576, 58 Cal. Rptr. 723 (Cal. Ct. App. 1967).

Opinion

250 Cal.App.2d 576 (1967)

Estate of ALLAN BRUCE CAMPBELL, Deceased. BANK OF AMERICA, as Trustee, etc., Petitioner and Respondent,
v.
JAY H. HALAS, Individually and as Executor, etc., et al., Claimants and Appellants.

Civ. No. 24215.

California Court of Appeals. First Dist., Div. Four.

May 1, 1967.

Ray A. Gallo for Claimants and Appellants. *578

Vizzard, Baker, Sullivan & McFarland and James Vizzard for Petitioner and Respondent.

CHRISTIAN, J.

This is an appeal from an order entered on the petition for instructions of respondent Bank of America National Trust and Savings Association as trustee under the will of Judge Allan B. Campbell. Judge Campbell made provision in his will for his three children, Jean Campbell, Kathleen Campbell Halas, and Allan B. Campbell, Jr., and for Kathleen's son, Jon Halas. Kathleen died before the trusts created by the will had terminated; the will did not make clear provision for that contingency and the trustee needs a definition of the surviving beneficiaries' rights.

The relevant clauses of the will may be summarized as follows:

Fourth. Bequeaths to Jon $2,000 to be placed in the trust created by the seventh paragraph.

Sixth. Gives to the bank, in trust for Kathleen,

(1) three parcels of realty, one of which she may occupy rent free, two the rental income of which she is to receive monthly.

(2) a percentage of an oil royalty to be accumulated for three years and then distributed according to directions.

Seventh. Gives to the bank, in trust for Jon, a percentage of an oil royalty, to be accumulated until he enters college. The trustee is to pay college expenses as they become due, and pay over the corpus and accumulated income to Jon when he reaches age 30.

Ninth. Gives to Jean, in trust for Allan, Jr., a secured note and a percentage of the oil royalty.

Eleventh. Gives all cash on hand to the three children, equally. Kathleen's share is placed in the trust created for her by clause six, but if the provision for Jon is insufficient to complete his college education, the trustee is to transfer an additional $3,000 to his account from Kathleen's residue account.

Allan, Jr.'s share is to be distributed to Jean as trustee, under the provisions of clause nine.

Twelfth. All the residue of the estate passes to Jean in trust, the income to be divided equally among the three children. The trustee is given authority to liquidate and sell any assets and distribute the proceeds to the beneficiaries in their respective shares.

Thirteenth. "The following provisions apply to each of the above trusts: *579"

"Should any of my said children be then deceased leaving no issue surviving at the date of the termination of these trusts, then, in that event, the share of such deceased child shall be distributed, share and share alike, among the then living heirs of my body."

"Any other provisions hereof to the contrary notwithstanding, all trusts shall fully cease and terminate twenty (20) years after my death. Upon such termination the entire principal of the trust estate, together with any undistributed income thereof, shall vest in and be distributed to the persons entitled to take under the provisions hereinabove set forth, and if there be no such persons surviving, then to the then living persons who would be my heirs had I died at the time in the proportions as determined by the laws of succession of the State of California."

"It [sic] at any time or times during the life of this trust one of the participating beneficiaries shall be in want of additional moneys for reasonable maintenance, comfort and support or for expense of accident, illness or other misfortune, or in case of a child, for his or her reasonable education including study at a higher institution of learning, in each such case it shall be the duty of the trustee, upon receipt by it or her of satisfactory evidence of such want, to pay to or to use or to extend to the beneficiary so entitled thereto use of the principal such sum as may be necessary to meet such want, and the amount thereof shall be charged up to the beneficiary so receiving same."

In its petition, the trustee pointed to the failure of the will to regulate the payment of income in the event of a beneficiary's death. In addition, the trustee sought instructions on the possible effect upon the interests of Jon Halas of the provisions for discretionary payments set forth in clause thirteen. The petition declared the belief of the trustee that Jon Halas, as the son and only issue of Kathleen, "is now entitled to receive the net income and discretionary payments."

By her own will, Kathleen attempted (1) to give her son, Jon, and her husband, Jay Halas, the right to occupy rent free the residence which she had occupied under clause six of her father's will and (2) to give any other interest she had under her father's will to her husband in trust for him and their son. In pursuance, Jay, as executor of Kathleen's will, filed a separate petition for instructions in the Campbell estate urging that Kathleen had a vested right in the corpus *580 of the trust, postponed in enjoyment until termination of the trust, and that this interest should be held to be part of her estate.

A separate appearance was made for Jon by his guardian ad litem to advance the possible interpretation that there was an implied gift to Jon upon his mother's death.

The court ruled that the trust created by clause six will not terminate until 20 years after July 18, 1960, the date of Judge Campbell's death, and that Jon Halas is not entitled to any present benefit, either in the form of cash or a right to occupy the Morro Bay house except for the right established by clause eleven to invade Kathleen's share for educational purposes if the benefit established by clause seven proves to be inadequate for that purpose. [fn. 1]

Jay Halas and Jon Halas both appeal, contending that either Kathleen took a vested remainder which at her death passed as directed in her will or that there was an implied gift over to Jon under the trustor's will upon her death.

[1] The construction of a will is a question of law, and the cardinal rule is that a will is to be construed according to the intention of the testator. (Estate of Blake (1910) 157 Cal. 448, 458- 459 [108 P. 287]; Estate of Bateman (1962) 205 Cal.App.2d 792, 795-796 [23 Cal.Rptr. 445]; Estate of Ottoveggio (1944) 64 Cal.App.2d 388, 391-392 [148 P.2d 878].) The will and its entire dispositive scheme should be considered together. (Prob. Code, 103; Estate of Franck (1922) 190 Cal. 28, 31 [210 P. 417].)

[2] In construing a will, the rules favoring early vesting, and vested, rather than contingent, remainders may be applied *581 to resolve uncertainties, where the testator's intention is imperfectly expressed. (Estate of Stanford (1957) 49 Cal.2d 120, 124 [315 P.2d 681]; Estate of Liddle (1958) 162 Cal.App.2d 7, 14-15 [328 P.2d 35].) Estate of Blake, supra, a leading California Supreme Court case with a dispositive scheme and language similar to the case at hand, is relied on by both appellants and respondents. (157 Cal.

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250 Cal. App. 2d 576, 58 Cal. Rptr. 723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-campbell-calctapp-1967.