Graydon's Executors v. Graydon

23 N.J. Eq. 229
CourtNew Jersey Court of Chancery
DecidedOctober 15, 1872
StatusPublished
Cited by9 cases

This text of 23 N.J. Eq. 229 (Graydon's Executors v. Graydon) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graydon's Executors v. Graydon, 23 N.J. Eq. 229 (N.J. Ct. App. 1872).

Opinion

The Chancellor.

The complainants are executors of the will of Samuel Graydon, late of the county of Bergen. The object of this suit is to settle the construction of the will, and to direct the complainants as to their'duty in executing it.

The testator died on the 17th day of August, 1869. By his will, dated July 11th, 1868, he authorized his executors, at their discretion, to sell his real estate. He directed them [231]*231to convert into money all liis personal estate not already in money or securities, and invest the same securely at interest, and to apply so much of the interest as should be necessary, to the support of his children until the youngest should be twenty-one. The great bulk of his estate consisted of shares in corporations, and was therefore included in this direction. When the youngest of his children should arrive at the age of twenty-one years, “then the said principal to be divided between them, share and share alike; said children being Caroline Graydon, John Graydon, Ida Graydon, and Samuel I). Graydon.” The sum of $12,000 of John Graydon’s share, and a like sum of Samuel’s share, is directed to bo kept at interest, and the interest of the part of each paid to him during his life, and at his death the principal to go to his issue. The whole shares of the two daughters were to be in like maimer kept at interest; the interest during their lives paid to each respectively, and at lier death the principal to go to her issue, when the youngest of said issue shall arrive at the age of twenty-one.

The sixth clause provides as follows: “If my said children shall die before a division of the property be made under the foregoing provisions, leaving no lawful issue, then I give and bequeath all the said rest of my estate, including said money and securities, and real and personal estate of every kind and nature, to my brothers.” Besides this, the will makes no disposition of testator’s real estate or money, or securities for money, unless the eighth clause is construed to dispose of them in the contingency there provided for.

The eighth clause is in these words: “If my son, John Graydon, shall marry a daughter of A. I. Cameron, of Ridge-wood, Bergen county, Aew Jersey, prior to December 1st, 1879, then my will is, and I order that he take no part or share of my estate, either of principal or interest, and the provision heretofore made for him is upon condition that he do not marry a daughter of said A. I. Cameron before December 1st, 1879. If he do, I hereby declare such provision void and revoked. And in ease my son, John Graydon, do marry [232]*232a daughter of A. I. Cameron aforesaid, before December 1st, 1879, then I order my said executors to dispose of my estate as if my son were dead in my lifetime intestate, and without issue, but subject, in other things, to the provisions of this my will.”

John Graydon, on the 10th of November, 1869, married Jessie Cameron, the daughter of Alexander I. Cameron, of Ridgewood. They had entered into a mutual engagement of marriage in February, 1868. . He then promised to marry her on his return from California, where ho was about to go, and from which he returned in September, 1869, shortly after his father’s death. He knew the provisions of his father’s will before the marriage.

The questions on which the complainants ask for the directions of the court are these :

1. Whether the directions to invest and pay over interest include the proceeds of the real estate and the money and securities for money. ^

2. Whether shares in corporations are included in the exception of securities, or whether they must be sold without regard to the fact that the interest of the proceeds will be less than the dividends.

3.. Whether the executors may permit the furniture and other movable chattels to remain unsold for the use of the family.

4. Whether, if the lands be sold, the income should be paid to the children.

5. Whether the testator is intestate, except as to the personal estate, which is not money or securities for money, and excepta legacy of $1000 which is given to Amanda Field, and an annuity of $200 given to his mother.

6. Whether John Graydon, by his marriage, is deprived of all right to any part of his father’s estate.

1. The will, after authorizing the executors to sell the real estate, and expressly leaving the sale to their discretion, di[233]*233rects : All the rest of my estate not already in money or seourities, I order my executors to convert into xxxoixey and invest.” Tlxe words, “all tlie rest,” ex r! termini, excludes the real estate which he has just provided for. And he expressly stated as to it: “I do not order them to sell tlxe same; I leave it to tlxeir best judgment.” This is inconsistent with including it iix the property which he now orders to be converted into money.

2. Shares in the capital stock of coi’porations are neither money nor securities. They are simply the title of a shareholder to his proportion of the corporate propex-ty and its income. Bonds, mortgages, notes, bills of exchange, and matters of like nature, are securities for money. Shares of capital stock are never called securities, unless when made so by being pledged as collateral. And here the testator could not have considered them as excepted under tlxe term of securities, for, without these, there was not personal property to produce S12,000, the sum which he directed to be invested for each of his sons, out of Ms fourth of the proceeds. Both tlxe languago of the will and the condition of his estate show that he intended these shares to be converted into money, and invested. The executors are bound to obey this direotioxx of the will. The wisdom of the direction is not for their consideration.

3. Tlxe testator, having no wife, provided for his four children by tlxe interest of $12,000 for each of his sons, and by the larger interest of her fourth share of the whole fund for each of his daughters. He íxxade no provision for keeping ixp tlxe mansion as a home for the family. The executors should not allow the furniture and other movables to be used axxd worn out, contrary to the express direction of the testator.

o. The interest of the proceeds of the lands when sold is xxot included in the directions of the fifth clause to apply interest to the support of the children.

[234]*2345. The only direct and positive dispositions made, besides the money legacy and the annuity, are as' to the proceeds of the personal property directed to be converted into money. The money, and securities for money, and the real estate or its proceeds, are not included in this disposition. The lan-' guage of the fifth clause, which contains the operative words of bequest, is clear and precise. After directing all the rest of his estate, not already in money or securities, to be converted into money, and disposing of the interest until the youngest child shall be twenty-one, it directs that, “ then the said principal shall be divided between them, share and share alike.” And all the other provisions, except those in the fifth and eighth clauses, relate to the shares of the four children in this fund.

The only disposition of any rest or residue of his estate is that contained in that part of the eighth clause, which directs his executors, in case of John’s marriage to A. I.

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Bluebook (online)
23 N.J. Eq. 229, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graydons-executors-v-graydon-njch-1872.