In re Hoysradt

20 Misc. 265, 45 N.Y.S. 841
CourtNew York Supreme Court
DecidedMay 15, 1897
StatusPublished
Cited by3 cases

This text of 20 Misc. 265 (In re Hoysradt) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Hoysradt, 20 Misc. 265, 45 N.Y.S. 841 (N.Y. Super. Ct. 1897).

Opinion

Edwards, J.

Abner Hammond died on the 12th day of May, 1849, a resident of Hudson, N. Y., leaving a will whereby, after making a disposition of a portion of his property, he gave to his executors the residue of his estate, hi trust, to receive the rents, issues, profit's and income of the real estate, and “ within á reason- . able and convenient time after ”. his decease, to sell and dispose' of the same; and, “ as soon as they conveniently can,” to sell and dispose of the personal estate and collect all moneys due; and with the proceeds to pay his debts and funeral expenses and invest the-, sum of $7,000 in good productive stocks or in bonds and mortgages upon unincumbered real estate and pay . the annual interest of same to his wife during her life, and upon her decease to pay one-fourth of said annual interest to each of his daughters, Sally. Maria, Maritta, Bathsheha and Caroline, during her life, and upon [267]*267the death of each of said four daughters to pay the one-fourth part of the said $7,000 to her children; and also to invest the sum of $588 in good productive stock or bond and mortgage and pay the annual interest to his daughter Polly during her life and upon her decease to pay the said $588 to her children; and upon the further trust, to invest all the residue of the moneys arising from the estate devised to them in trust in good productive stocks, or in bonds and mortgages on unincumbered real estate, and pay the one-fourth of the income therefrom, annually, to each of his said four daughters during her life and after her death to pay one-fourth of the principal of said residue to her children.

On July 18, 1849, the said will was admitted to probate by the surrogate of Columbia county, and letters testamentary thereon were issued to Charles McArthur, the only one of the executors named in the will who accepted such appointment. Subsequently thereto three trustees of the said estate were successively appointed and served as such until about the 15th day of March, 1873, when, by the order of this court, Charles W. Macy was appointed sole trustee with the same power and authority which were conferred by the will upon the executors named therein; and the said Macy has ever since continued to act as such trustee.

A part of the property devised to the executors in trust and which came into the hands of the present trustee was a tract of land of about one thousand acres, situate in Forest county, Pennsylvania. In an action brought by this trustee for an accounting, a decree was made on June 5, 1880, directing a distribution of the trust estate remaining in his hands, except the said tract of land in Pennsylvania, which remained undisposed of, and except that the trustee was authorized to' retain the sum of $1,000 for the purpose of paying the taxes on said land and the further expenses of the trust. This tract of land was wholly unproductive; was of the value of about three thousand dollars, and the annual taxes thereon were about one hundred and eighty dollars. The decree contained the following provision: “And it. appearing that the real estate situated in Forest county, .Pennsylvania, now held by the plaintiff as trustee as aforesaid, is wholly unproductive; that the annual taxes thereon are about one hundred and eighty dollars; that it is expedient and best for the interests of all persons entitled to the proceeds of the sale thereof that said real estate be sold as soon as a purchaser can be found of same at a fair price therefor. And it is, therefore, hereby ordered and directed that the said [268]*268trustee sell,the same at public or private sale, and at such price as. he can obtain for same as he shall deem, according to his own' judgment and .discretion, for the best interests' of all persons concerned.”

On October 16, 1885, Caroline McArthur, the last of the four daughters of the testator who Were entitled to the income of said trust estate, died, and the children of the s'aid four daughters thereupon became, in accordance with the provisions of the will, entitled to the principal. A few days thereafter the trustee, with knowledge of the death of said Caroline McArthur, granted to one A. S. Allshouse the south half of said tract of land, “ to have and to hold for the purpose of drilling, boring and mining for oil, gas and other minerals for the period of twelve years (excepting coal) from the date hereof ” (thereof) “ or as long as oil, gas or other minerals are found in paying quantities upon the premises.” The assignee of Allshouse is in the enjoyment of the rights granted and the trustee has received therefor about one hundred and fifty dollars per annum. The trustee subsequently to said decree has also sold certain timber growing on said tract of land for the sum of $2,500.

On May 2, 1895, the trustee.granted to the Oil City Fuel Supply Company “ all the oil and gas in and under ” the north half of said tract of land, “ together with the right to enter thereon at all times for the purpose of drilling and operating for oil, gas or water, and to erect and maintain all buildings and structures and ■ lay all pipes necessary for the production and transportation of oil, gas or water taken from said premises,” for the term of twenty years, for the sum of $1,800.

It is claimed by the petitioners that the sale of. the timber, and the leases, or contracts, made by the trustee with Allshouse and with the Oil City Fuel Supply Company, were in excess of the powers conferred upon the trustee and constitute a breach of trust for which, together with his neglect to sell the real estate as directed by the testator and by the decree of the court, he should be removed. Ho want of capacity or integrity upon the part of the trustee is alleged, nor could' such claim be maintained. That he has endeavored to discharge his duties with fidelity and for the best interests of the trust estate cannot be controverted. ISTor do I think that the trustee could be criticised for any want of prudence and judgment in the acts complained of if he were free from any limitations in the management [269]*269of the trust estate. That these acts have rendered the property more valuable than was anticipated by the beneficiaries is quite evident. But, in the execution of his trust, the trustee was limited to the performance of the duty imposed upon him. Bus power of disposition of the trust estate was such only as was expressly conferred by the instrument creating the trust or as was necessary to its due execution. His manifest duty was to execute the trust in accordance with the intention and direction of the testator. The clearly expressed intention and direction of the testator was that the trustee should, within a reasonable time, convert the real estate into money and invest the same in certain securities named by him, for the purpose of producing an annual income, payable to his wife and to his daughters during their lives and after their death the principal to be paid to their children. Has direction to ■sell and dispose of his real estate “within a reasonable and convenient time after his decease ’” was imperative. The only discretion left to the trustee, in respect to the sale of the real estate, was as to the manner of the sale, whether “ public or private,” the price and the terms of credit. It was an explicit direction to sell within a reasonable time and to invest the proceeds in securities productive of an annual income. The order of the court, made in 1880, for the sale of the real estate was in accordance with the, provisions of the will.

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Bluebook (online)
20 Misc. 265, 45 N.Y.S. 841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-hoysradt-nysupct-1897.