In Re Estate of William L. Clark, Deceased. Jennifer Clark, an Adult v. John R. Clark and Girard Trust Bank

495 F.2d 102, 161 U.S. App. D.C. 276, 1973 U.S. App. LEXIS 6454
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 17, 1973
Docket72-1428
StatusPublished

This text of 495 F.2d 102 (In Re Estate of William L. Clark, Deceased. Jennifer Clark, an Adult v. John R. Clark and Girard Trust Bank) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Estate of William L. Clark, Deceased. Jennifer Clark, an Adult v. John R. Clark and Girard Trust Bank, 495 F.2d 102, 161 U.S. App. D.C. 276, 1973 U.S. App. LEXIS 6454 (D.C. Cir. 1973).

Opinion

LEVENTHAL, Circuit Judge:

This is an appeal from an order of the District Court, sitting in Probate, dismissing objections to an account filed by the executors of the estate of William L. Clark, pursuant to 20 D.C.Code § 1701 et seq. A beneficiary under Clark’s will objects to the executors’ statement of es-penses and compensation for services on the probate assets of the estate, on the ground that the statement did not include all claims for compensation for services on probate assets which the executors would eventually make. We affirm.

I. STATEMENT OF FACTS

The testator, William L. Clark, died on November 6, 1968. His only heirs were his daughters, Jennifer Clark and Lucy P. Clark. His will, dated August 21, 1968, named as executors his brother, John Clark, a resident of Pennsylvania, and the Girard Trust Bank in Philadelphia. At the time of his death, the testator was domiciled in the District of Columbia. The will was admitted to probate and Letters Testamentary were issued by the District Court to the executors, on January 13,1969.

On August 21, 1968, the decedent also created an inter vivos trust in Pennsylvania, for the benefit of the decedent during his lifetime, and then his daughters during their lifetimes. The trust instrument named the Girard Bank as trustee, and provided that John Clark should become an additional trustee at the decedent’s death. The trust instrument was executed at Philadelphia and provided that all questions of its validity or of the administration of the trust' should be governed by Pennsylvania law. Article 13 1 authorized the trustee to *104 make payments from the principal of the trust for “administration expenses in connection with my estate, even though they do not relate to property becoming subject to this deed.” Under the will, the probate assets in decedent’s estate, valued at $216,367.95 by the Register of Wills, were to “pour over” into the Pennsylvania trust.

On February 10, 1971, John Clark wrote the two beneficiaries of the arrangements concerning compensation for services rendered in connection with estate settlement. This letter advised that $13,400 were claimed in executor’s commissions, and $14,500 in attorney’s fees, to be paid from both probate assets and the principal of the Pennsylvania trust. The following table summarizes the sources and recipients of compensation as disclosed in the February 10 letter:

From. From Probate Trust
Recipient Assets Assets Totals
Girard (co-executor’s commission) $ 5,800 $ 4,100 $ 9,900
John Clark (co-executor’s commission) 3,500 -0- 3,500
Washington counsel (legal fees) 4,000 3,000 7,000
Philadelphia counsel -0- 7,500 7,500
TOTALS $13,300 $14,600 $27,900

On October 8, 1971, the executors filed with the District Court, for its approval, a claim for compensation for services rendered in connection with probate assets, as follows:

Executors’ commissions $9,300
Attorneys’ fees 4,000
$13,300

Jennifer Clark 2 opposed the court’s approval of the executors’ claim, asserting that there was no assurance that the claim represented all compensation for services on probate assets which the executors might ultimately claim; that the compensation which executors intended later to obtain from the trust might represent, in part, compensation for services rendered to probate assets, which would eventually become part of the trust principal; and that since anticipated payments by the executors as trustees were not included in the claim, the District Court could not determine whether the executors’ total compensation for service to the probate assets was reasonable under District of Columbia law. In addition, there was objection to the payment of attorneys’ fees to *105 the Philadelphia law firm in which the executor John Clark is a partner, since under District of Columbia rulings it is improper for an attorney to pay his own law firm for legal services rendered to an estate from which he receives commission as an executor.

The executors asserted that the jurisdiction of the District Court was limited to supervision of compensation for services rendered to probate assets and paid from the probate assets themselves.

The District Court, in an oral ruling, dismissed the objections. The Court stated that “the trust estate in Philadelphia is no concern of ours” and further that

I would assume that the Philadelphia Court, in passing upon the propriety of the claimed commissions and attorneys’ fees in that jurisdiction, will become well aware of what is being done down here.

(JA 156-57).

II. JURISDICTION AND CONCERN OF THE DISTRICT COURT

The jurisdiction of the District Court sitting in Probate (Probate Court) extends to probate assets — those to which title passes under the will. An inter vivos trust in which the beneficial interest passes pursuant to the trust instrument is not a probate asset, see In re Scott’s Estate, 96 F.Supp. 290 (D.D. C.1951), and the Probate Court lacks jurisdiction over questions as to the trustee’s performance of trust obligations, McLane v. Cropper, 5 App.D.C. 276, 298 (1895), appeal dismissed 163 U.S. 682, 16 S.Ct. 1200, 41 L.Ed. 316 (1896), even if the Probate Court has personal jurisdiction over the trustee because he is also an executor. 3

In the circumstances of this case, we think the Probate Court acted correctly, that it had no jurisdiction over John Clark and the Girard Bank in their capacity as trustees, and that it properly allowed what are palpably fair and reasonable executors’ commissions and attorneys’ fees for services rendered in regard to probate assets, because the individuals involved were planning a separate application to the Pennsylvania court having jurisdiction over the trust.

The arguments before us though compressed in the time constraints of the summary docket, have trailed broadly into fields we do not enter. The executors and attorneys contend that the probate court is solely limited to a consideration of “probate assets.” The beneficiary responds that the court must attend to the reality of “pour over” trusts as part of the entire scheme for disposition of the entire estate left by the decedent, that such trusts, especially with provisions like Article 13, permit a disbursement, outside the view of the probate court, of payments made for services rendered to probate assets, which are in contravention of the legislature’s contemplation of judicial scrutiny over executor’s commissions. They assert that the overriding policy that must be applied is that set forth in 20 D.C.Code §

Related

McLane v. Cropper
5 App. D.C. 276 (D.C. Circuit, 1895)
In re Hallenback's Estate
122 F. Supp. 212 (District of Columbia, 1954)
In re Scott's Estate
96 F. Supp. 290 (District of Columbia, 1951)

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495 F.2d 102, 161 U.S. App. D.C. 276, 1973 U.S. App. LEXIS 6454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-william-l-clark-deceased-jennifer-clark-an-adult-v-cadc-1973.