In Re the Accounting of the Farmers' Loan & Trust Co.

82 N.E. 181, 189 N.Y. 202, 1907 N.Y. LEXIS 934
New York Court of Appeals·Decided October 1, 1907·Published·Cited by 30 cases

Opinion

Haight, J.

These, proceedings were instituted by the Farmers’ Loan and Trust Company, as trustee under the last will and testament of Israel Corse, deceased, for a judicial settlement of its accounts and for a construction of the third clause of the testator’s will. The only question brought up for review pertains to the construction to be given to the clause of the will in question. It is as follows:

“ Third. I do give and bequeath to The Farmers’ Loan and Trust Company of FTew York City, in trust nevertheless, Ten first mortgage bonds of one thousand dollars each, and which are a lien on any division or branch road of the Chicago, Milwaukee and St. Paul Railway Company, bearing six per cent interest, for the following named persons, uses *204 and purposes, viz.: To pay said interest or income thereof to my niece, Eliza L. Saunders of Flushing, Long Island, during the period of her life, and at her demise with respect to the principal of this fund and accrued interest thereon, if any, I do give and bequeath the same to my namesake, Israel Corse, Junior, the son of the late Frederick Corse of Flushing, Long Island. In event of the death of said Israel Corse, Junior, without leaving issue after the demise of said Eliza L. Saunders, then I give and bequeath this trust fund to my grandniece, Katharine Corse Saunders.”

The will was executed on January 8, 1885. The testator died on the 13th day of July, 1885, and his last will and testament was duly admitted to probate by the Surrogate’s Court of Suffolk county. The bonds specified in the third clause of the will were thereupon turned over to The Farmers’ Loan and Trust Company, which received the same as such trustee, and ever since has discharged its duties as such, and which still holds the bonds on which interest becomes due and payable on the first day of January and July in each year. Eliza L. Saunders, the life beneficiary mentioned in the clause, died November 11th, 1905, leaving a last will and testament, which has been duly admitted to q>robate in Queens county, in which letters testamentary were issued to Edwin Thorne, who is now the executor thereof. Israel Corse, Jr., is still living, but has never married or had issue. Katharine Corse ■ Saunders is also living, lias married and is now Katharine Corse Jngersoll. The surrogate held that upon the death of Israel Corse, the testator, Israel Corse, Jr., took a vested remainder in fee in the estate created by the third clause of the will, limited upon the life estate of Eliza L. Saunders, subject, however, to be defeated by a condition subsequent, viz., the death of Israel Corse, Jr., without issue at any time after the death of Eliza L. Saunders, in which event the substituted remainder given in that contingency to Katharine Corse Ingersoll will vest in possession, and that the interest accruing upon the bonds between July 1st, 1905, the date of the last payment to Eliza L. Saunders, and November 11th, *205 1905, the date of her death, is payable to Edwin Thorne, as the executor of her last will and testament, less the legal commissions of the trustee, and that the balance of said income in the hands of the trustee is payable to Israel Corse, Jr., less the legal commissions of the trustee; and that the trustee continue to hold the fund and pay the income therefrom to Israel Corse, Jr., during his life, and upon his death that it pay over the principal to his issue, if any, and that in default of issue that it pay over said principal to Katharine Corse Ingersoll. From this decree Israel Corse, Jr., appealed, contending that having survived Eliza L. Saunders, he became the absolute owner and entitled to the possession of the bonds constituting the trust, and to the interest that matured thereon after the first day of July, 1905.

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In Re the Accounting of the Farmers' Loan & Trust Co., 82 N.E. 181, 189 N.Y. 202, 1907 N.Y. LEXIS 934 (N.Y. 1907).

82 N.E. 181 (In Re the Accounting of the Farmers' Loan & Trust Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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