Holmes v. Walter

62 L.R.A. 986, 95 N.W. 380, 118 Wis. 409, 1903 Wisc. LEXIS 48
CourtWisconsin Supreme Court
DecidedJune 18, 1903
StatusPublished
Cited by30 cases

This text of 62 L.R.A. 986 (Holmes v. Walter) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holmes v. Walter, 62 L.R.A. 986, 95 N.W. 380, 118 Wis. 409, 1903 Wisc. LEXIS 48 (Wis. 1903).

Opinion

Marshall, J.

The claim is made by appellant’s counsel that no trust was attempted to be created by the will; that the purpose of the testator was to bestow all of his estate upon his wife with full power to do therewith as she might see fit. That idea is urged upon us with much earnestness, and rules for judicial construction are invoked to support it. As we view the will we cannot reach the point where judicial construction is permissible. There is a tendency to commence dealing with testamentary instruments at once and almost as a matter of course upon their coming within the reach of judicial administration, as if construction thereof were necessary, or at least permissible, while the true rule is that construction never begins until uncertainty of sense is pretty clearly apparent. In this case there is no such uncertainty. Any attempt to construe the instrument would involve an effort to put meaning into the words contrary to their plain import, and to create uncertainty instead of the opposite. “I give, devise and bequeath to my beloved wife Mary, in trust for herself and my children, all of my estates,” etc., “with full power to continue my business if for the best interest of my estate.” What can be plainer than those words as regards the mere intention to create a trust, leaving out of view the question of the validity of the trust for the time being. The devise and bequest of property was not made absolutely to the [414]*414trustee, but “for herself and my children.” The property was not merely conveyed to the trustee to the use of herself and the children, all to immediately possess and enjoy as primary takers; but it was conveyed to the widow for herself and the children, with full power vested in her to operate the property, or to convert the same and invest the fund in other property in her discretion, she talcing, primarily, the use thereof. Every word used in the will is in harmony with the one theory that the testator intended to vest the legal title to the property in the trustee with the fullest discretionary authority over the same, as regards how best to devote it to the purpose of the trust. It was limited only by the words “for herself and my children,” plainly indicating that all were to share equally in the benefits of the trust.

Counsel refer to Davies v. Davies, 109 Wis. 129, 85 N. W. 201, as if that were an authority for holding that when property is plainly given to one in trust for that one and others, with absolute power of control over the same as regards the manner in which the same shall be managed for the beneficiaries, the element of trust, though technical words in respect thereto be used to express it, may by construction be eliminated. That case is very far from supporting such idea. The Davies will was uncertain to the highest degree susceptible of being made certain by construction. There was no question about that. The difficulty was in reading out of the ambiguous instrument the idea which the testator had in mind when he signed it. The court did not reach the final result by discarding the element of trust. That was retained, and amplified, so to speak, by construction, so as to disclose some reasonable meaning within the legitimate scope of the testator’s language. No one, it seems, can read the decision there rendered and gather, legitimately, the impression that if Dr. Davies had left his property to his wife in trust for herself as well as the other objects of his solicitude mentioned in his will, there would have been any difficulty calling for con[415]*415struction as regards the element of trust itself. The court did not say that the doctor failed to create a trust, or did not intend to create one. It held that be did create a trust, but that be intended to make bis wife one of the beneficiaries thereof as well as the other persons named as such, though failed to express the purpose so that it could be discovered without the aid of judicial construction. We have no such difficulty here. There is not a circumstance, that we can discover, sufficient to furnish a well-grounded suspicion that the testator did not intend to create a trust. Whereas, in the Davies Case the literal sense of the trust clause was broadened, letting in Mrs. Davies as a beneficiary, it appearing to be manifest, under the circumstances, that the testator did not intend to leave her entirely unprovided for and destitute and at the same time impose upon her the duty of administering bis estate, which was small, for the benefit of others, .here the idea is that we should eliminate altogether the element of trust, though it is clearly expressed, by taking the .language of the will literally, to accomplish the disinheritance of all the testator’s children, though be bad ample property to provide for the wife and bis children as well. There construction was successfully invoked to avoid an unnatural meaning. Here it is invoked to create one, as we look at the matter.

Our views so far are in harmony with those of the learned circuit judge as regards whether the testator intended to create an active trust. In an elaborate opinion be pointed out in a general way what the testator purposed doing, all indi-eating such a trust, winding up with these expressions:

“In any event the business could be conducted, the estate managed, disposed of, its proceeds invested and divided— transactions likely to run through a series of years — with greater convenience and economy, in the name of a single per-son acting as trustee, than by the ten heirs acting individually, some of them for some years by guardians. Such were very probably some of the considerations which moved the testator [416]*416to invest Ms widow with the entire estate, In trust for hersel£ and my children,’ leaving the conditions of the trust to be determined afterwards, in the manner already indicated, as-future circumstances should seem to require.”

The last clause of the quoted language, looking at the opinion as a whole, must be construed as holding that the testator-left to the trustee broad discretionary authority as to how best to execute the trust in order that her administration might be adapted to changing circumstances, a very common, feature in a trust created by will for the benefit of the testator’s family, — a feature almost necessary to such a' trust.

Enough has been said, without going further into a detailed consideration of the learned judge’s opinion and decision, to show that he held that the will created a trust of an unmistakably active character. The legal title to the property was,, by appropriate terms, vested in the trustee, and she was empowered to control and manage it, as the circuit judge suggests, for the reason, among others, that it was of such a character that the interests of all concerned could be best subserved by avoiding a divided management. The statement of the learned court that the testator intended to vest in his wife-the title to the property with power to manage it, is, of course, a distinct decision that he intended to create a trust. It negatives any purpose that the beneficiaries should take the title - as tenants in common. Notwithstanding the very active-character of the trust thus indicated, the learned circuit judge-said that the trust was passive in character. It would not seem necessary to stop to more than suggest that a trust cannot be at the same time both active and passive. If it has-presently the essentials of one, that excludes the possibility of its having presently the essentials of the other.

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Bluebook (online)
62 L.R.A. 986, 95 N.W. 380, 118 Wis. 409, 1903 Wisc. LEXIS 48, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmes-v-walter-wis-1903.