Hale v. Campbell

46 F. Supp. 772, 1942 U.S. Dist. LEXIS 2384
CourtDistrict Court, N.D. Iowa
DecidedSeptember 17, 1942
DocketNo. 36
StatusPublished
Cited by6 cases

This text of 46 F. Supp. 772 (Hale v. Campbell) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hale v. Campbell, 46 F. Supp. 772, 1942 U.S. Dist. LEXIS 2384 (N.D. Iowa 1942).

Opinion

NORDBYE, District Judge

(under special assignment to District Court, Northern District of Iowa).

Henry and Elizabeth Hale were married in 1920. In 1922, Elizabeth inherited from her father’s estate approximately $411,500 in Iowa municipal bonds. In 1924, she executed a bill of sale to Henry of an undivided one-half interest in all of these bonds. It appears that some time after the marriage, the Hales acquired various pieces of real estate, the deeds running to both spouses. They had no children, but shortly after this bill of sale was executed, they took two small children, Herman and Betty, to rear. Apparently neither of these children was ever formally adopted, but were referred to as the wards of the Hales. On April 22, 1929, the Hales executed and acknowledged reciprocal contracts, identical in form except that in one Elizabeth C. Hale is the first party and grantor, with Henry O. Hale as grantee, and in the other, Henry O. Hale is the first party and grantor, and Elizabeth C. Hale the grantee. The contract executed by Elizabeth Hale as grantor is the basis of this suit, and it is upon this writing that plaintiff contends he has succeeded to all right, title and possession of all the property which Elizabeth C. Hale possessed at the time of her death in 1938. This contract reads:

“Contract
“This Contract and agreement made and entered into by and between Elizabeth C. Hale, Party of the First Part, and Henry O. Hale, Party of the Second Part, Witnesseth:
“That for and in consideration of the sum of One Dollar ($1.00) and Other Valuable Consideration, the Party of the First Part hereby transfers, sells and assigns to the Party of the Second Part all property of all kinds now or hereafter owned by the party of the first part, absolutely and unconditionally, except with the reservation that the use and enjoyment of said property by the party of the second part shall not commence or begin until the death of the Party of the First Part.
“Dated at Fort Dodge, Iowa, this 22nd day of April, 1929.
“Elizabeth C. Hale “First Party
“Henry O. Hale “Second Party
“State of Iowa J “Webster County J SS‘
“Be It Remembered that on this 22nd day of April, A. D., 1929, before me, the undersigned, a notary public in and for Webster County, Iowa, personally appeared Elizabeth C. Hale and Henry O. Hale, to me personally known to be the parties named in the foregoing instrument and they did acknowledge the execution thereof to be their voluntary act and deed for the purposes therein set forth.
“Kathryn Hillman
“Notary Public in and for Web-(Seal) ster County, Iowa.”

It may be pointed out that the two contracts were drawn at the same time by an attorney now dead, and were executed simultaneously but were never recorded.

It is to be gathered from the testimony that the Hales were not entirely satisfied that the reciprocal contracts would do that which the parties had intended. It appears that in April, 1932, Elizabeth’s mother died, and from her Elizabeth inherited substantial additional property, mostly in mu[774]*774nicipal bonds. Elizabeth was concerned over the effectiveness of the 1929 contracts, particularly with reference to the after-acquired property. After conferring with her attorney, it was decided that reciprocal wills should be drawn so that if the contracts were not valid or effective as to after-acquired property, reciprocal wills would accomplish that which the parties had assumed to be the effect of the 1929 contracts. Henry was present at these conferences, and he and Elizabeth executed reciprocal wills on June 4, 1932. These two wills devised and bequeathed all of the property of each spouse to the other, and the result was that the survivor would take all of the property which the Hales possessed jointly or in severalty.

Later, the Hales again consulted counsel regarding codicils to the reciprocal wills which had been drawn and there was considerable talk regarding the advisability of drawing new wills. It may be gathered that the parties recognized that the reciprocal wills were more or less temporary, in that it was deemed advisable either to add codicils thereto or to execute new wills so as to provide for certain beneficiaries other than the respective spouses. During the year 1933, and in the early part thereof, several drafts of wills were drawn. These tentative wills provided for trusts for the benefit of the two children, Herman and Betty. Apparently, both Henry and Elizabeth had concluded that a trust should be created so that an income of $200 a month would be produced for each child. In so far as Herman was concerned, the corpus was to be paid to him when he reached the age of 3'5; Betty’s income of $200 a month, however, was to be paid to her during her lifetime. It fairly appears that the wills thus contemplated were to be identical, except that in Henry’s will some provision was made for his aged father.

No action was taken, however, with reference to a new will until the Fall of 1933, when Elizabeth executed her will. Henry, however, did not make a new will. The will executed by Elizabeth was not, therefore, a reciprocal will and is not now extant. Whether she left the bulk of her estate to Henry and incorporated the various trust features which were contemplated is not definitely known. However, additional light is thrown upon the contents of the 1933 will by reason of the fact that in 1935 she executed a codicil to this will. A copy of the codicil is in evidence and is revealing. It clearly indicates that two trusts were created in the 1933 will; that Henry was appointed as trustee; and that the following provision was made with reference to a successor trustee:

“If my husband shall die before the termination of either trust created herein, then Myrtle Malone and Wallace Malone of (now) Hammond, Kansas, or the survivor of them, shall succeed as such trustee.”

In lieu of this provision, she provided in her codicil that if her husband, Henry, should die before the termination of either trust, the District Court having jurisdiction of the beneficiaries of the trust should appoint a suitable person as successor trustee and give preference to the person nominated by the beneficiaries. It further appears that her husband was not appointed as executor in this will, in that one Roene Brooks was nominated executrix, and the codicil provides that, in lieu of such provision, Herman O. Hale and Betty Hale should be appointed executors.

In 1937, Elizabeth became ill and expressed a desire to make another will. Henry interested himself in looking after the arrangements, and procured someone to draw the will, which was executed on July 7, 1937. After this will was executed, Henry destroyed the 1933 will, together with the codicil of 1935'. This- new will gave to Betty $5,000; to Herman, certain real estate and $30,000 in cash, and in, the event that he was completing a course of education at the date of the testate’s decease, then up to $1,000 should be advanced by the executor for the purpose of allowing him to finish his education. Two other-small bequests were made, and. the remainder of the estate was left to Henry.

Some time prior to March 3, 1-938, a dispute had arisen between Henry and his-ward Herman.

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Cite This Page — Counsel Stack

Bluebook (online)
46 F. Supp. 772, 1942 U.S. Dist. LEXIS 2384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hale-v-campbell-iand-1942.