Floyd v. Smith

5 N.W.2d 695, 303 Mich. 137, 1942 Mich. LEXIS 366
CourtMichigan Supreme Court
DecidedOctober 6, 1942
DocketDocket No. 51, Calendar No. 41,808.
StatusPublished
Cited by4 cases

This text of 5 N.W.2d 695 (Floyd v. Smith) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Floyd v. Smith, 5 N.W.2d 695, 303 Mich. 137, 1942 Mich. LEXIS 366 (Mich. 1942).

Opinion

Boyles, J.

Charles W. Smith, of Lapeer, on August 3,1932, executed his will, and in January, 1933, May, 1936, and October, 1937, executed codicils. He died August 11,1939, leaving surviving him as heirs-at-law his wife and several adult children of two deceased sisters. May 14, 1940, plaintiffs, who are nephews and nieces of the deceased, filed the bill herein to have the provisions of the will construed, alleging that one codicil did not create a precatory trust, and that the will and another codicil violated the rule against perpetuities and was, therefore, void. Plaintiffs claim that parts of the estate became intestate property to which they are entitled as heirs-at-law.

The case was heard upon stipulated facts, and the court held the provisions of the will and codicils valid except in one particular later mentioned. On *140 appeal, plaintiffs claim that the third codicil of the will is void because it did not create a precatorytrust. That codicil, executed October 29, 1937, provided :

“I desire to create and bequeath a fund of the following named properties which now consist of:
“1. A mortgage of $12,000 against the Lapeer Golf Club Association with interest at 5 per cent.
“2. A mortgage of $7,000 against the farm of Samuel Taylor, Elba Township, with interest at 5 per cent.
“3. A mortgage of $1,800 against property of Frank Laugklin, Bronson Lake, with interest at 7 per cent.
“4. A mortgage of $1,700 against the property of Harold Teachout, Park street, Lapeer, with interest at 5 per cent.
“5. A mortgage of $2,850 against the property of Howard Chapel in Lapeer city, with interest at 6 per cent., joint.
“6. A deed to property at Reese, Michigan, valued at $12,000 now occupied by Clifford L. Hulbert with a garage and living quarters.
“This fund amounting now to $37,350 will then be divided as follows:
“To the First Presbyterian Church, Lapeer, $4,000.
“To the Methodist Episcopal Church, Lapeer, $4,000.
“To the Methodist Protestant Church, Lapeer, $4,000.
“The balance of this fund is to be used toward the construction of a new fireproof hospital for La-peer city as a memorial to myself and wife, Mrs. Nettie PI. Smith, rather, Mr. and Mrs. Charles W. Smith.”

Appellants claim this statement in the third codicil, “I desire to create and bequeath a fund,” was *141 not a direction but merely an expression of hope or future desire. We hold it was a testamentary disposition of property, creating a precatory trust.

The items specified in the third codicil were appraised at $24,425, the estate was appraised at $87,156, and there were substantially no debts. With reference to the third codicil, the court found:

“That the last portion of this codicil, that is, the attempt to create a trust fund, is too indefinite, and is not a valid trust, and for that reason the portion of the property set forth in said codicil not necessary to pay the three churches the $4,000 bequest each, should be returned and become a corpus of part of the estate, and be distributed under the will; * * * and if there is more than sufficient property in the six items mentioned in the codicil to pay these three bequests, that the balance of the same, or the residuary part of it should become a part of the corpus of the estate.”

So far as the record before us discloses, Lapeer city was not made a party to this case, nor was anyone made a party on behalf of the fund created by this codicil to be used toward the construction of a hospital for Lapeer city. No appearance has been entered by or on behalf of anyone interested in this fund although the prosecuting attorney of the county, acting also as city attorney, has filed a brief in this court. We do. not overlook the fact that no appeal has been taken by anyone on behalf of the hospital fund, but parties not before the court cannot be charged with the results. Notwithstanding this situation, the court below, in its opinion; in referring to that part of the third codicil creating a fund for the construction of a hospital, found this gift void because it was too indefi *142 nite. The decree entered, after providing that each of the three mentioned churches should be paid $4,000 under the provisions of this codicil, further states:

“That the provision, to-wit:
“ ‘The balance of this fund is to be used toward the construction of a new fireproof hospital for La-peer city as a memorial to myself and wife, Mrs. Nettie M. Smith, rather, Mr. and Mrs. Charles W. Smith.’
contained in said codicil three is void, for the reason that it is too indefinite and is not a valid legacy, and does not create a valid trust.”

This being a chancery case which we hear de novo, we hold that this provision of the decree cannot stand. The bequest of a fund to be used toward the construction of a hospital for Lapeer city is a request for charitable or benevolent uses'. By statute (3 Comp. Laws 1929, §§ 13512, 13513 [Stat. Ann. §§26.1191, 26.1192]), no gift, grant, bequest or devise, whether in trust or otherwise, to charitable or benevolent uses shall be invalid by reason of the indefiniteness or uncertainty of the object of such trust or of the persons designated as the beneficiaries thereunder. If the instrument creating such a gift does not name a trustee, the statute provides that the trust shall vest in the court of chancery and shall be executed by some trustee appointed for that purpose by or under the direction of the court, that the court of chancery shall have jurisdiction and control over the gift, and that such a trust shall be liberally construed so that the intentions of the creator shall be carried out whenever possible. Trusts of a like nature have been upheld by this court in Re Brown’s Estate, 198 Mich. 544, and *143 Scudder v. Security Trust Co., 238 Mich. 318. The decree must provide that the third codicil be considered valid in its entirety and, if necessary, be administered in accordance with the statute.

The widow elected to take under the will. The Lapeer Savings Bank declined the appointment stated in the will, and under the first codicil the First National Bank of Lapeer, Michigan, was nominated and appointed executor, with the same powers as were given the Lapeer Savings Bank in the will.

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Cite This Page — Counsel Stack

Bluebook (online)
5 N.W.2d 695, 303 Mich. 137, 1942 Mich. LEXIS 366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/floyd-v-smith-mich-1942.