In re BNY Mellon

47 Misc. 3d 481, 2 N.Y.S.3d 862
CourtNew York Surrogate's Court
DecidedDecember 29, 2014
StatusPublished

This text of 47 Misc. 3d 481 (In re BNY Mellon) is published on Counsel Stack Legal Research, covering New York Surrogate's Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re BNY Mellon, 47 Misc. 3d 481, 2 N.Y.S.3d 862 (N.Y. Super. Ct. 2014).

Opinion

OPINION OF THE COURT

Anthony A. Scarpino, Jr., S.

In this contested miscellaneous proceeding, the petitioner BNY Mellon National Association (BNY), the trustee under a trust created under the last will and testament of William R. Rice (the decedent), requests that the court issue a decree construing a portion of that last will and testament in order that it can make final distribution to the individuals entitled to the assets under the trust. BNY has taken a position on the proposed construction, and that construction is opposed by Mark Steven Silo, as the executor of the estate of Agnes Rice Silo (Agnes’s estate).

A guardian ad litem was appointed to represent the interests of certain known individuals, some of whom have unknown whereabouts. These individuals constitute the estates of nieces and nephews of the decedent, only some of which have representatives. The guardian ad litem has filed a report in which he supports the construction proposed by BNY.

The decedent was married to Marie Rice, and they had one child, a daughter named Ruth Rice. On October 7, 1953, the decedent, an attorney, drafted an instrument and executed it. On December 17, 1953, the decedent died. On December 31, 1953, the instrument was admitted to probate, and letters [483]*483testamentary and letters of trusteeship issued to the First Westchester National Bank of New Rochelle, BNY’s predecessor in interest (also referred to here as BNY).

The instrument provided that if the decedent survived Marie and Ruth, his residuary estate would pass to Ruth’s issue, and if Ruth had no issue, then his estate was to be divided “per capita among my nephews and nieces of my own blood. The share of any deceased nephew or niece is to be divided between his or her own issue per stirpes.”

On page 2 of the will, the decedent instructed that, if Marie survived him, one half of his adjusted gross estate (after payment of administration expenses and pre-residuary bequests) was to fund a marital trust for her lifetime with her having a testamentary power of appointment. The marital trust further provided for the net income to be paid to Marie in quarterly installments, and upon her death, if the power of appointment was not exercised, the principal would continue in trust with the income payable to Ruth for life. At Ruth’s death, the principal was to be paid to Ruth’s issue per stirpes, or if Ruth had no living issue, “then the remaining principal shall be divided in equal parts between my nephews and nieces of my own blood, per capita.”

At pages 2 to 3, the will provided for the remainder of the residuary estate to pass to the trustee to be held in trust with three fourths of the income to be paid to Marie for her lifetime and the remaining one fourth of the income to be paid to Ruth for her lifetime. The will further stated that, upon the death of either, the entire net income of the trust was to be paid to the survivor for life. Upon the termination of the trust, the principal was to be paid to the “descendants of my daughter, RUTH, per stirpes and not per capita. In the event my daughter, RUTH, diefs] without descendants, then the principal shall be distributed among my nephews and nieces of my own blood, per capita.” (Emphasis added.)

On February 15, 1980, Marie died, and in her will, she exercised the power of appointment in favor of Ruth. On January 9, 2009, Ruth died, without issue. On her death, the residuary trust established at pages 2 to 3 of the decedent’s will, terminated.

As noted, BNY filed this petition, seeking a decree construing the highlighted provision of the decedent’s last will and testament set forth above. BNY maintains that, while the decedent’s intention is not perfectly clear, it would appear that [484]*484he aimed to benefit those nieces and nephews of his own blood who were alive at his death. This construction would yield the distribution by BNY of the corpus equally among the 16 estates of the decedent’s blood nieces and nephews who were alive at his death.

In contrast, Agnes’s estate believes that the language of the decedent’s will demonstrates that he intended that the final takers of the trust survive the lives of Marie and Ruth, and that therefore, since Agnes was the only individual of the decedent’s blood nieces or nephews to post-decease Marie and Ruth, her estate takes the entire remainder. Courts have repeatedly pointed out that there is “probably no branch of law in which precedent is of less value than in questions involving testamentary construction . . . This is especially true as to questions of vesting of estates” (Matter of Watson, 201 Misc 193, 196 [Sur Ct, Oneida County 1951], affd 279 App Div 840 [1952], Iv denied 279 App Div 976 [4th Dept 1952], citing Matter of Bump, 234 NY 60 [1922]).

In Matter of Bump, the Court of Appeals wrote:

“In the construction of a will we seek the intent of the testator as exhibited by the words he has selected. Canons of construction may aid us. Based as they are upon general considerations; upon guesses as to what the average man would intend by this expression or by that, we rest upon them in the absence of more certain indications. Slight variations of phrase, however, or differences in arrangement may lead us to opposite results” (234 NY 60, 63).

Applying the rule of law, we know that a testator’s intent is gleaned not by focusing on any one word or provision but from a sympathetic reading of the entire instrument (see Matter of Cord, 58 NY2d 539, rearg denied 60 NY2d 586 [1983]; Matter of Fabbri, 2 NY2d 236, rearg denied 2 NY2d 979 [1957]), giving each word its ordinary meaning (see Matter of Gustafson, 74 NY2d 448 [1989]). If a will reveals a dominant purpose or plan, the individual parts must be interpreted in accordance with that plan, and the actual purpose of the testator be given effect as far as possible (see Matter of Hobert, 7 Misc 3d 447 [Sur Ct, Westchester County 2004]). The surmise of the drafter or any other interested person is not relevant (see Matter of Cord).

To begin, the court reviews the will to ascertain whether an ambiguity exists (see Matter of Ragone, 58 NY2d 864 [1983]). If [485]*485the court finds such an ambiguity, it may resort to evidence outside of the language of the instrument (see Matter of Ragone). Here, the court has reviewed the language of the will and holds that it is unambiguous.

As set forth above, certain presumptions developed by case law facilitate the determination of a testator’s intent. Since the decedent made a will, there is always a presumption against intestacy (see Matter of Fabbri; Matter of Eisner, 34 Misc 2d 662 [Sur Ct, Westchester County 1962]), and the law favors a vesting of estates (see Matter of Russell, 168 NY 169 [1901]; United States Trust Co. v Taylor, 193 App Div 153 [1st Dept 1920], affd 232 NY 609 [1922]). Here, the decedent’s intention is apparent. Through his last will and testament, he desired to benefit Marie, Ruth and Ruth’s progeny. He gave general bequests to his sisters and brothers living at his death.1 However, it was only on the chance that Ruth died without leaving issue that any of his nieces and nephews would share in his bounty.

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Cite This Page — Counsel Stack

Bluebook (online)
47 Misc. 3d 481, 2 N.Y.S.3d 862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-bny-mellon-nysurct-2014.