In re the Accounting of Brooklyn Trust Co.

200 Misc. 252, 102 N.Y.S.2d 184, 1950 N.Y. Misc. LEXIS 2388
CourtNew York Surrogate's Court
DecidedDecember 26, 1950
StatusPublished
Cited by2 cases

This text of 200 Misc. 252 (In re the Accounting of Brooklyn Trust Co.) 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 the Accounting of Brooklyn Trust Co., 200 Misc. 252, 102 N.Y.S.2d 184, 1950 N.Y. Misc. LEXIS 2388 (N.Y. Super. Ct. 1950).

Opinion

Richardson, S.

The present proceedings were instituted by petitions filed by Brooklyn Trust Company and City Bank Farmers Trust Company, respectively, to render and settle

their final accounts as trustees of two trusts created under the will of the testator, the late Edwin F. Knowlton, which was duly [255]*255admitted to probate November 14, 1898. The pertinent provisions of the will are as follows:

“ Tenth: All the rest, residue and remainder of my property of every name and nature and wheresoever situated not required to satisfy the foregoing provisions of this my Will, including any of the gifts hereinbefore made that may lapse or fail to take effect, I dispose of as follows:
“ Unless all the trusts hereafter provided for shall wholly fail to take effect, I direct my Executors hereinafter appointed to pay and deliver over one-half of my said residuary estate as near as they can conveniently arrive thereat, to the Brooklyn Trust Company and the balance thereof to the Franklin Trust Company [City Bank Farmers Trust Company is now successor trustee], both in the City of Brooklyn, in trust, if my said daughter shall survive me, to keep the same duly invested and to pay the income thereof semi-annually to my said daughter, during her natural life, said companies to so arrange, if possible, between themselves, that the semi-annual income shall be paid by one in January and July and by the other in April and October, and
Upon her death I direct each of said Trust Companies to divide the Trust fund or estate held by it into as many equal shares as shall be the number of her children who shall survive her and those who shall have died leaving lawful issue who shall survive her, and to set apart one share for each of said children so surviving her and such issue of each deceased child; and
To each of the said children surviving her who shall be in being at my death, to pay the income of the share set apart for him or her, to him or her during his or her natural life, and upon his or her death to pay the principal of such share in equal proportions to his or her lawful issue then living, if any, per stirpes and not per capita.”

The testator died in 1898. His daughter had married and lived abroad until her death on July 16, 1929, leaving her surviving one child, a son Hans, born prior to the death of the testator, and no issue of any predeceased child or children. Upon her death, therefore, Hans became entitled to all of the income of the residuary estate as secondary life beneficiary pursuant to the terms of the will. He had married in Germany and at the time of his mother’s death had two children, Edwin and Constance, who are still living. A third child born of the marriage had died leaving no issue. At his mother’s death, he lived with his wife and children in Germany. Thereafter, he traveled extensively and later resided for a time in Liechten[256]*256stein. In December, 1939, he entered this country as an immigrant, left the following month and returned in May, 1940, remaining in this country until his death. Shortly after the second arrival in this country he filed a form of intention to become a citizen of the United States. In December, 1941, he instituted an action for divorce in Idaho against his wife and, upon her default in appearance or answer, a decree of divorce was entered against her on January 27, 1942. Thereafter and on February 24, 1942, in the State of Florida, he entered into a ceremonial marriage with another woman. Of this second union a son Michael, was born on December 10, 1942, in the State of California, where concededly his father, the grandson of the testator, had been a resident from July 1, 1942, until the time of his death on December 5,1944.

By vesting Order No. 3135, dated February 15, 1944 (9 Federal Register 2190), as amended on February 7, 1946 (11 Federal Register 3003), (hereafter referred to as the Vesting Order ”), the Alien Property Custodian, acting under authority of the Trading with the Enemy Act (U. S. Code, tit. ‘50, Appendix, §§ 1-39), vested in himself all of the right, title and interest of Edwin and Constance in the two trusts created under the testator’s will, upon findings that they were nationals of Germany. By Executive Order No. 9788 (Oct. 15, 1946, 11 Federal Register 11981), the Attorney General of the United States succeeded to the powers and duties of the Alien Property Custodian. Hereinafter, for convenience the term “ custodian ” will be used to refer to both the Alien Property Custodian and to the Attorney General as his successor.

The petitions, which were filed in 1945 and 1946, respectively, alleged that the lawful issue of Hans were his three children, Edwin, Constance and Michael. The custodian filed answers to the petitions denying that said three children were the lawful issue of Hans and alleging that the sole lawful issue of Hans were Edwin and Constance and that Michael was not one of the lawful issue within the purview of the language used in the will of the testator and had no interest in the trust funds herein accounted for. The special guardian appointed for the infant Michael, in replies filed by him, took the position that the principal was distributable in three equal shares to the three children and that the interest of the custodian was limited to the two-thirds interest of Edwin and Constance. This court found, in decisions dated August 10,1948 (Matter of Knowlton, 192 Misc. 1032), that the decree of divorce entered in Idaho must be given effect and that as a result Michael was one of the [257]*257lawful issue of Hans and entitled to a one-third interest in the trusts. No question had been raised as to the status of Edwin and Constance as lawful issue.

Prior to the above-mentioned decision by this court, and on or about June 5, 1948, a notice of appearance was filed on behalf of Edwin and Constance who had not been parties to these accounting proceedings at the time of the trial, having been nonresident aliens. Their time to appear in the Brooklyn Trust Company proceeding had expired in 1945 and in the other proceeding in 1946. These two children moved to reopen the trial of the issues arising on the final accountings of the trustees and to permit them to be heard and to submit additional proof as to the facts not theretofore presented. These motions were denied by this court by decisions dated August 10, 1948, after a hearing on July 15, 1948. Upon appeal from orders which were entered to give effect to these decisions on September 7, 1948, the Appellate Division on December 19, 1949, filed an opinion affirming the orders ‘ ‘ but without prejudice to a new application for the same relief on all the evidence in appellant’s possession.” The opinion of the Appellate Division went on to say: ‘ ‘ The order appealed from did not represent an improvident exercise of discretion on the facts presented in the affidavits. While this court is not permitted to consider the new and additional facts presented because this is not an appeal on the facts from a final decree or order (Surrogate’s Ct. Act, § 309), the appellants should be permitted to have the Surrogate consider the new and additional facts which were not before him at the time the original application was made.” (Matter of Knowlton, 276 App. Div. 864.)

Concurrently with said motions, the custodian moved to strike out the appearances of Edwin and Constance.

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Related

In re the Accounting of Brooklyn Trust Co.
208 Misc. 454 (New York Surrogate's Court, 1955)
" Posner " v. " Posner "
201 Misc. 432 (New York Family Court, 1952)

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Bluebook (online)
200 Misc. 252, 102 N.Y.S.2d 184, 1950 N.Y. Misc. LEXIS 2388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-accounting-of-brooklyn-trust-co-nysurct-1950.