First National Exchange Bank v. Hughson

74 S.E.2d 797, 194 Va. 736, 1953 Va. LEXIS 142
CourtSupreme Court of Virginia
DecidedMarch 9, 1953
DocketRecord 4039
StatusPublished
Cited by17 cases

This text of 74 S.E.2d 797 (First National Exchange Bank v. Hughson) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First National Exchange Bank v. Hughson, 74 S.E.2d 797, 194 Va. 736, 1953 Va. LEXIS 142 (Va. 1953).

Opinions

Miller, J.,

delivered the opinion of the court.

On February 4, 1952, The First National Exchange Bank of Roanake, guardian of Nellie W. Stone, incompetent widow of Dr. Eustace B. Stone, deceased, filed its hill in equity against A. L. Hughson and Colonial-American National Bank, executors of decedent’s estate, and against the Baptist Orphanage of Virginia, Eugenia W. Stone, and others, legatees under his will.

The primary purpose sought to be accomplished was to have the court renounce, or authorize the guardian to renounce, the provisions made in Dr. Stone’s will for his widow, and direct his executors to deliver to complainant as guardian of Nellie W. Stone, all property to which she would have been entitled upon her renunciation had she been competent. Certain interested parties and beneficiaries opposed renunciation. In their answers they proposed, and four legatees offered, alternative plans (Plan 1 and Plan 2) to set up a special trust for the widow in the property bequeathed to them. From this trust the guardian would receive the income for support of its ward during her life. If necessary, the trustees named in the trust would also be allowed to invade the corpus and pay to the guardian for the support of the widow such part thereof as might be needed. The part not thus used would, upon the widow’s death, pass to the four legatees as nearly in accordance with the terms of the will as possible.

By decree of April 21, 1952, the court declined to renounce and accepted, with slight modification, Plan 2. From that decree the guardian sought and obtained an appeal.

[738]*738An intelligent understanding of the problems presented requires that the terms of an inter vivos trust established by Dr. Stone before his death for the benefit of his wife during her life, pertinent provisions of his will, the terms of the plans to establish the special trust for the widow as proposed by the legatees, and other relevant facts, be stated in detail.

By written instrument of April 1,1947, Dr. Stone transferred certain personal property to Colonial-American National Bank and Gr. C. Holcomb, trustees, and thereby set up a trust under the provisions of section 5157, Code of 1942, (section 55-19, Code of 1950) for the benefit of his wife. When the instrument was executed, the property included in the trust was worth about $52,000. Under its terms, the trustees could use the income for the support and maintenance of Nellie W. Stone during her life, but income that accrued and was unused was to be added to the principal. In event the income was insufficient to provide for Nellie W. Stone, then after, but only after, she had used all of her individual estate, could the trustees invade the principal to provide for her maintenance. Any of the corpus not so used for the widow was to pass at her death to named parties who were settlor’s brothers and nieces.

At the time of Dr. Stone’s death on April 17, 1951, his wife was seventy-five years old (said by defendants to be seventy-seven), and she had become physically helpless and hopelessly insane. She was a patient at Lewis-Gale Hospital, Roanoke, Ya., where she is still confined, and constant nursing attention is required for her. Income from the inter vivos trust had not been used as it accrued, and the principal, thus augmented, had by March 20, 1952, increased to $63,077.

Dr. Stone’s will, dated September 8, 1950, was admitted to probate April 21, 1951. Testator left surviving neither father nor mother, and no direct descendants by blood or adoption, but he was survived by brothers, nieces, nephews, and other kin.

Excepting certain provisions of the will which have no bearing upon this controversy, it is, in part, as follows:

“(3) I give and bequeath unto my dear wife, Nellie W. Stone, the sum of Twenty Thousand Dollars ($20,000.00), which sum is to be delivered by my executors to The Colonial-American National Bank, Trustee, and said sum is to become a part of the trust fund heretofore created by me for the benefit [739]*739of my wife. This is in addition to the proceeds of insurance policies on my life, which I have made payable to my wife, and the income from the trust fund above mentioned, which I have previously established for her benefit. I direct that the bequest of $20,000.00 be the first charge on my estate and be paid to The Colonial-American National Bank, Trustee, by my executors before any bequest hereinafter provided for are paid out of my estate.”

Here follow paragraphs 4 to 8, inclusive, and by the bequests contained therein totaling $98,000, monetary gifts are made in varying amounts to fifteen different people, i.e., testator’s brothers, nieces, nephews, a great-niece, and two parties bearing no blood relation to him. The last bequest mentioned in paragraph 8 is to a niece, Eugenia W. Stone, for $15,000, thus leaving $83,000 as the sum bequeathed to the other fourteen legatees mentioned ahead of her.

The will then continues:

“(9) I give and bequeath to the Goodwill Industry and Gospel Mission of Roanoke, Virginia, Incorporated, the sum of $2,000.00.
“I give and bequeath to the Grandin Court Baptist Church of Roanoke, Virginia, $500.00.
“All of the above bequests are to be' paid by my executors in the order of their priority, in the event that my estate is not sufficient to pay all of them.
“(10) All the rest and residue of my estate, both real and personal, of every kind, and description, wherever situated, I give, devise and bequeath to the Baptist Orphanage of Virginia at Salem, Virginia.”

Paragraph 11 is unimportant; Paragraph 12 nominates the executors, and among other things, provides as follows:

“* * j father direct that my executors distribute all United States, State and Municipal bonds and all notes, bonds, and corporate stocks left after all Federal taxes are paid, to the legatees above designated, but in order to make an equal and unquestionable distribution, it may be necessary to have some of the stocks reissued in smaller blocks. I do not want the bequests of my relatives to be paid in cash, but in stocks, bonds or notes, as near as possible.
“The bequests to the Goodwill Industry and Gospel Mission [740]*740of Roanoke, Virginia, Incorporated, and the Grandin Court Baptist Church of Roanoke, Virginia, are to be paid in cash.” Emphasis added.

The two insurance policies on testator’s life (mentioned in Paragraph 3 of the will, but which do not pass thereunder) in which his widow is beneficiary provide for payments to her beginning as of insured’s death of $49.20 and $50.00 per month for the term of 120 months and 240 months respectively.

It was shown by the testimony of Dr. W. R. Whitman, who was thoroughly familiar with Mrs. Stone’s condition (but whose records showed her to be about seventy-eight years old when he testified on March 31,1952), that her life expectancy was about four years. The yearly cost of supporting and caring for her, which includes keeping graduate nurses to serve her twenty-four hours a day, amounts to about $16,440. That sum could be reduced to about $13,700 if practical nurses were employed for her at the hospital.

On May 11, 1951, when the guardian qualified, Nellie W.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Perez v. Draskinis
89 Va. Cir. 298 (Roanoke County Circuit Court, 2014)
Grubb v. Yacoub
86 Va. Cir. 503 (Fairfax County Circuit Court, 2013)
In re Estate of Rohrbaugh
80 Va. Cir. 253 (Fairfax County Circuit Court, 2010)
Boyle v. Boyle
30 Va. Cir. 438 (Albemarle County Circuit Court, 1993)
Deane v. Morris
24 Va. Cir. 234 (Greene County Circuit Court, 1991)
Williams v. Skeen
401 S.E.2d 442 (West Virginia Supreme Court, 1990)
Consolidated Industrial Roofing, Inc. v. Williams
17 Va. Cir. 341 (Roanoke County Circuit Court, 1989)
Roanoke Engineering Sales Co. v. Rosenbaum
290 S.E.2d 882 (Supreme Court of Virginia, 1982)
Alexandria National Bank v. Thomas
194 S.E.2d 723 (Supreme Court of Virginia, 1973)
In re the Estate of Clark
236 N.E.2d 152 (New York Court of Appeals, 1968)
In Re Roberts'estate
338 P.2d 719 (Montana Supreme Court, 1959)
Newton v. Newton
102 S.E.2d 312 (Supreme Court of Virginia, 1958)
Hartt v. Hartt
295 P.2d 985 (Wyoming Supreme Court, 1956)
First National Exchange Bank v. Hughson
74 S.E.2d 797 (Supreme Court of Virginia, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
74 S.E.2d 797, 194 Va. 736, 1953 Va. LEXIS 142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-national-exchange-bank-v-hughson-va-1953.