In re the Accounting of Marine Trust Co.

187 Misc. 201, 61 N.Y.S.2d 335, 1946 N.Y. Misc. LEXIS 2038
CourtNew York Supreme Court
DecidedApril 3, 1946
StatusPublished
Cited by4 cases

This text of 187 Misc. 201 (In re the Accounting of Marine Trust Co.) 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 the Accounting of Marine Trust Co., 187 Misc. 201, 61 N.Y.S.2d 335, 1946 N.Y. Misc. LEXIS 2038 (N.Y. Super. Ct. 1946).

Opinion

Hinkley, J.

This decision calls for a judicial construction of a trust inter vivas. The issue is of necessity confined to the [203]*203instrument of trust itself without regard to the disposition of the other property under. the will of the deceased settlor. The primary question is whether a future estate created by the declaration of trust vested at the time of the death of the settlor or at the time of the death of his daughter, the life tenant.

The settlor, John M. Fedders, in his lifetime and on October 15, 1928, duly executed a declaration of' trust. The trustee, the Marine Trust Company of Buffalo, accepted the trust, entered upon its duties of trusteeship and is still so acting. The entire corpus of the trust consisted of the proceeds of policies of insurance upon the life of the settlor. Upon the death of the settlor on April 25, 1934, the trustee in accordance with the provisions' of the trust collected the various sums accruing under the policies and administered the trust for the benefit of the settlor’s daughter, Evelyn L. Sievers (formerly Evelyn L. Fedders). Upon the death of the daughter, the trustee now seeks guidance from the court as to the proper disposition of the corpus of the trust.

The part of the declaration of trust which is before the court is as follows: Upon the death of said Evelyn L. Fedders ” (daughter of the settlor and then Evelyn L. Sievers) “ the said trustee shall pay over the entire amount remaining in its hands to the children of the said Evelyn L. Fedders, in equal shares. If said Evelyn L. Fedders leaves no child or children her surviving then said trustee shall pay the entire balance in its hands at the time of her death in equal shares to my brothers and sisters, namely Louis F. Fedders, Christ W. Fedders, Theodore 0. Fedders, Wilhelmina M. Couse, and Louise Detenbeck, per stirpes and not per capita.”

The daughter, Evelyn L. Fedders, and the three brothers and two sisters of the settlor were all alive and in being at the time of his death. During the lifetime of the daughter and on February 4, 1942, one brother, Louis F. Fedders, died leaving a widow and an adopted son. Also during the lifetime of the daughter and on May 15, 1944, one sister of the settlor, Wilhelmina M. Couse, died without issue. Thereafter and on January 31, 1945, the daughter of the settlor died without issue.

The issue at hand may be briefly and clearly stated. If the future estate vested in the three brothers and two sisters at the time of the death of the settlor, then, subject to the life estate, each one of the five individuals became the absolute owner of one fifth of the funds to do with as he or she pleased. If, on the other hand, the future estate did not vest until the determination of the life estate, then the surviving, two brothers and [204]*204one sister would each become the absolute owner of one fifth the funds at that time and the shares of the deceased brother and sister would be property undisposed of by the declaration of trust.

That the future estate of the settlor vested in his three brothers and two sisters at the time of the death of the settlor seems clear.

Section 40 of the Real Property Law (adopted in the Personal Property Law, § 11) is as follows: “ When future estates a,re vested; when contingent. A future estate is either vested or contingent. It is vested, when there is a person in being, who would have an immediate right to the possession of the property, on the determination of all the intermediate or precedent estates. It is contingent while the person to whom or the event on which it is limited to take effect remains uncertain.”

In the instant case, when the settlor died, there were five persons in being, each of whom had an immediate right to the possession of one fifth of the funds upon the determination of the intermediate life estate of the daughter of the settlor, she dying without issue. That fact must stand admitted; the language of the trust in this respect is clear. The three brothers and two sisters are actually named and a definite share allotted to each. There are no words of survivorship such as survivor, surviving issue, children, next of kin, heirs at law, executors, administrators or descendants. By no construction of the trust’s provisions was there a postponement of the vesting of the estate until the death of the daughter or any other time. The words imply a definite gift at the time of the death of the settlor to his three brothers and two sisters then in being.

There are certain landmarks to distinguish a vested estate which have existed since the time when the memory of man runneth not to the contrary. Where there are no words of survivorship, when there is no uncertainty as to the person or event, where the gift is not to a class, where there are persons in being who would be entitled to immediate possession of the property upon the determination of the intermediate or precedent estates, then the future estate is vested and not contingent. We can point under the determination of this trust to the three brothers and two sisters of the settlor at the time of his death and say as to them: “ Those men and those women by virtue of a grant of a remainder would have an immediate right to the possession of the property if the precedent estate of another therein should now cease and therefore the three brothers and two sisters had a vested remainder upon the death [205]*205of the settlor. The determination of the precedent estate is all that is necessary to entitle those persons then in esse to take, and it cannot be denied that they had a vested remainder. ’ ’ (Moore v. Littel, 41 N. Y. 66, 76-77; Matter of Watson, 262 N. Y. 284, 299; Matter of Seaman, 147 N. Y. 69, 74.)

In the terse language of Chancellor Kent, “It is not the uncertainty of enjoyment in future, but the uncertainty of the right to that enjoyment, which marks the difference between a vested and contingent interest.” (4 Kent’s Comm. p. 206.)

The authority for this decision, which authority has never been modified, altered, or reversed, is found in Matter of Brown (154 N. Y. 313, 321-323 [1897]). There Judge Haight said: “ The statute provides that future estates are either vested or contingent. They are vested, when there is a person in being, who would have an immediate right to the possession of the lands, upon the ceasing of the intermediate or precedent estate. They are contingent, whilst the person to whom, or the event upon which they are limited to take effect, remains uncertain.’ * * * Upon the death of the testator the grandchildren were all in being; under the will they had the immedi - ate right to the possession of the estate upon the termination of the life estates. Their estates, were, therefore, vested at the time of the death of the testator * * *. It will be observed that no words of survivorship are used, either in the provision with reference to the income, or with reference to the corpus of the estate. Had he stated that the income, or the corpus should be paid to the children then surviving, there would have been reason for the contention that the persons who were to take remained uncertain and could not be determined until the time arrived at which the estate could be distributed. He then concluded with a declaration of his intention, saying:

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Bluebook (online)
187 Misc. 201, 61 N.Y.S.2d 335, 1946 N.Y. Misc. LEXIS 2038, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-accounting-of-marine-trust-co-nysupct-1946.