Estate of Van Deusen

30 Cal. 2d 285
CourtCalifornia Supreme Court
DecidedJune 24, 1947
DocketL. A. No. 19800
StatusPublished
Cited by41 cases

This text of 30 Cal. 2d 285 (Estate of Van Deusen) 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 Van Deusen, 30 Cal. 2d 285 (Cal. 1947).

Opinion

30 Cal.2d 285 (1947)

Estate of FLORENCE LENORE VAN DEUSEN, Deceased. GLADYS VAN DEUSEN BRIGHT et al., Respondents,
v.
BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION, Appellant.

L. A. No. 19800.

Supreme Court of California. In Bank.

June 24, 1947.

William K. Young, Brady & Nossaman and Walter L. Nossaman for Appellant.

Ben C. Cohen and Leonard Hartigan for Respondents.

TRAYNOR, J.

Florence Lenore Van Deusen by her will dated June 20, 1932, left the residue of her estate to American Security and Trust Company of Washington, D. C., as trustee, for the following purposes: "... to pay over the net income arising therefrom, in equal shares, unto by aforesaid daughters, Gladys Van Deusen Bright and Hazel Van Deusen Lee, during the period of their joint lives, and in case of the death of either of them, then all of said net income unto the survivor, for and during the natural life of the survivor. Upon the death of the survivor of my said daughters, this trust shall finally cease and determine, and my trustee shall thereupon transfer, assign and pay over the entire trust fund, including any undistributed income, absolutely and in fee simple, in equal shares unto those of my grandchildren who may then be living, the then surviving issue, however of any of them who may then be dead, to take, per stirpes, the same part or share the deceased ancestor would have taken if living."

The testatrix died on April 10, 1944, and the will was admitted to probate on June 13, 1944. The named trustee declined to act, and Bank of America National Trust and Savings Association was appointed administrator-with-the- will-annexed. On March 22, 1945, the daughters of the testatrix, the life beneficiaries of the trust, filed a "Petition for *287 Directions to Trustee" with the probate court. The purpose of the petition was to have the trustee, when appointed, instructed to pay each of the life beneficiaries at least $200 a month, out of income, if that was sufficient, but if not, out of the corpus of the trust. It is alleged in the petition that the provision made by the testatrix for her daughters was intended to provide them with enough income to take care of their needs, that it was contemplated at the time the will was executed that the net income from the trust investments would be at least $400 a month, and that the testatrix intended that no less than $200 a month would be available for each daughter under the trust. It is also alleged that since the creation of the trust one of the daughters has been afflicted with a disease believed to be incurable and needs special medical care and that the other daughter must rely entirely upon the income from the trust for the necessities of life.

On April 3, 1945, Bank of America Trust and Savings Association was appointed trustee, and by order for ratable distribution a part of the residue of the estate was distributed to the trustee. On the same day the "Petition for Directions to Trustee" was denied. The order for ratable distribution provides: "The Trustee shall pay in equal shares to Gladys Van Deusen Bright and Hazel Van Deusen Lee during the period of their joint lives, and in case of the death of either of them then to the survivor for and during the natural life of said survivor, all of the net income arising from said trust estate."

"Upon the death of both of decedent's daughters, said trustee shall distribute the corpus of the trust estate in equal shares to the grandchildren of decedent who may then be living, or, in the event of any of said grandchildren not surviving, then his or her share shall be distributed to his or her surviving issue in equal shares and per stirpes, and thereupon this trust shall cease and terminate."

On September 12, 1945, the probate court made its order of final distribution, distributing the balance of the residue to the trustee "in trust for the uses and purposes set forth in the Order for Ratable Distribution, dated April 3, 1945. ..." No appeal was taken from either order of distribution. Sometime after April 3, 1945 (the record does not disclose the date of the order) a new trial was granted on the "Petition for Directions to Trustee" and another hearing was held on the petition on February 14, 1946. On the basis of the record *288 at the original hearing on the petition, the court entered its order granting the petition of the life beneficiaries for directions to the trustee to pay each of them at least $200 a month, after a showing that the net income of the trust at that time was sufficient to pay each beneficiary from $100 to $125 a month only. This order was based on a finding by the probate court "that the main benefits under said trust were intended for the petitioners herein who were the primary objects of the testatrix's solicitude and that the primary purpose of the trust could not be accomplished by a strict adherence to the terms of the declaration of the trust ... and that it is the purpose of said trust that the said petitioners herein receive the sum of $200 each per month." From this order the trustee, who appeared at the hearing in opposition to the petition, appeals.

The trustee contends that the probate court was without jurisdiction to make the order on the grounds that respondents' petition was not a proper petition under section 1120 of the Probate Code, that the new trial on the petition after the final decree of distribution constituted a collateral attack on the final decree of distribution, that the probate court was without jurisdiction to modify the trust pursuant to section 1120, and that if the probate court had jurisdiction and the matter was not conclusively determined by the final decree of distribution, the probate court erred in ordering an invasion of the corpus of the trust contrary to the express terms of the decree of distribution and of the will itself.

Probate Code section 1120 provides: "When a trust created by will continues after distribution, the superior court shall not lose jurisdiction of the estate by final distribution, but shall retain jurisdiction for the purpose of determining to whom the property shall pass and be delivered upon final or partial termination of the trust, to the extent that such determination is not concluded by the decree of distribution, or settling the accounts and passing upon the acts of the trustee and for the other purposes hereinafter set forth. Any trustee appointed by will, or appointed to execute a trust created by will, may from time to time pending the execution of his trust, or at the termination thereof, render for settlement his accounts and report his acts as such trustee before the superior court in which the will was probated. ... The trustee may also petition such court, from time to time, for instructions as to the administration of the trust. ... The *289 trustee shall cause notice of the hearing to be mailed to the beneficiaries at their last known addresses. ..."

It has been held that a beneficiary as well as a trustee may petition the court for instructions to trustees pursuant to this section. (Estate of Marre, 18 Cal.2d 184, 186 [114 P.2d 586].) It has never been decided, however, whether the petition may be filed before the appointment of a trustee and before distribution. It is clear that the section applies only to testamentary trusts that continue after distribution, and most of its provisions expressly refer to action taken after distribution. In Estate of Smith, 4 Cal.App.2d 548, 552 [

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30 Cal. 2d 285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-van-deusen-cal-1947.