In re the Estate of Bailey

141 Misc. 748, 253 N.Y.S. 275, 1931 N.Y. Misc. LEXIS 1492
CourtNew York Surrogate's Court
DecidedNovember 8, 1931
StatusPublished
Cited by2 cases

This text of 141 Misc. 748 (In re the Estate of Bailey) 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 Estate of Bailey, 141 Misc. 748, 253 N.Y.S. 275, 1931 N.Y. Misc. LEXIS 1492 (N.Y. Super. Ct. 1931).

Opinion

O’Connor, S.

This is a proceeding for the construction of the will of F. Eugene Bailey, deceased, who died on or about March 20, 1926, leaving a last will and testament, which was duly admitted to probate by the surrogate of Delaware county on May 3, 1926; letters testamentary thereupon were duly issued to the First Trust and Deposit Company of Syracuse, N. Y., and said trust company duly qualified on that date, both as executor of and trustee under said last will and testament. Thereafter proceedings were duly had for the judicial settlement of the accounts of said First Trust and Deposit Company as executor and a decree judicially settling such accounts to March 18, 1927, was made and entered on December 12, 1927, directing that the balance of the estate appearing upon said accounting be turned over to and held by said trust company, as trustee, in accordance with and for the purpose of the trust created by paragraphs 3 and 4 of said will.

The First Trust and Deposit Company has presented to this court an account of its proceedings as such trustee from March 18, 1927, to August 24, 1931, and asks that its said account be judicially settled and allowed and that a decree be made and entered determining the validity, construction and effect of the disposition of the property contained in the 2d and 3d paragraphs of said will which read as follows:

“ Second. All the rest, residue and remainder of my estate, both real and personal, I give, devise and bequeath to my Executor hereinafter named in trust to invest and hold the same, and pay the income arising therefrom over to my said wife in quarterly installments during her lifetime or until she shall marry. Upon the death or remarriage of my said wife I direct that the Trust Fund be divided into as many equal parts as there shall be children of mine then surviving, and that one of such parts be held in trust for each of my said children. The income of one of such parts shall be paid over to the use of each child in quarterly installments ■until he or she shall arrive at the age of twenty-five years, and then one-half of the principal of the Trust for each child shall be paid over by my Executor to him or her to be his or hers absolutely. The other one-half shall continue to be held in Trust until each child becomes thirty years of age when it shall be paid over by my Trustee to such child to be his or hers absolutely. I direct that the Trustee in turning over the principal of the Trust shall turn over Bonds and Mortgages or other securities rather than cash to my children.

“ Third? In order to provide for the suitable education of my children I hereby authorize my Trustee from time to time to advance out of principal moderate sums in its discretion for the [750]*750college education of each child. It is my wish that, as soon as convenient after my death, my family shall move into Syracuse or Ithaca the better to provide for the education of my children, and I direct my Trustee to withhold further payment of income from the trusts above made unless my family shall have so moved within five years after my death.”

On the former judicial settlement Pauline Bailey, the widow of the deceased, filed a petition requesting construction of the above paragraphs of said will. At that time the five-year period specified in the 3d paragraph of the will had not expired and the court held that a judicial construction of the will was not necessary in the proceeding for a judicial settlement of the account; that the necessity for such a determination might never arise and that the proper time to determine such questions was when they arose and that they should not be anticipated.

The five-year period has now elapsed and it becomes necessary to have a judicial construction of the will in order that the trustee may know whether or not to continue to pay the income from the estate to the widow, and if not what disposition of the income should be had.

The deceased left his said widow, Pauline Bailey, and three infant children, Lois P. Bailey, now ten years of age, Ruth M. Bailey, now eight years of age, and Helen J. Bailey, now seven years of age. Shortly after the death of testator, F. Eugene Bailey, the widow took her three children and moved to Cooperstown, KT. Y., where she and they have continued to reside. It appears from the evidence in this proceeding that the reason for her doing this was that her friends and relatives lived at Cooperstown and that they were willing to help and have been helping her maintain her home and support and care for her children; that the income from the estate left by her husband only amounts to about seventy-five dollars a month and she claims that it would be an impossiblity for her to move to Ithaca or Syracuse and support her children in either of those cities on that amount of money. She, therefore, asks that the clause in the 3d paragraph of her husband’s will directing the trustee to withhold further payment of income from the trusts above made unless his family should have moved into Syracuse or Ithaca within five years after death, be held to be invalid. She urges a number of reasons in support of her contention.

One of the arguments advanced by the attorney for the widow is that the language of paragraph 3 is precatory and not mandatory; that an absolute bequest of income is given to the widow under the 2d paragraph of the will and that the clause which directs the trustee to withhold further payment of income unless [751]*751Ms family moves to Syracuse or Ithaca is introduced by the words It is my wish that.” If this language continued through and governed the remainder of the sentence the contention that it is a precatory clause and not a mandatory would prevail. However, this is not the case, and while the testator stated it was his wish that his family move into Syracuse or Ithaca the better to provide for the education of Ms children, he followed it by directing his trustee to enforce Ms wish by withholding further payment of the income unless Ms family should have so moved within five years after his death.

Thus while the testator expressed a wish wMch his family were not obligated to carry out, yet he had a right to and did provide that in case they did not comply with the wish they incurred the penalty of having the income from the trust fund withheld by the trustee. In other words, he sought to enforce the carrying out of his wish by imposing a penalty for a failure to do so. In doing tMs he was clearly within Ms rights even though the penalty imposed by Mm for failure to comply with his wishes was capricious, arbitrary and severe. The testator’s power to give necessarily mcludes the right to withhold or to attach terms and conditions to the gift, regardless of how capricious or unreasonable the conditions may seem to others unless they violate some established principle or statute. (Oliver v. Wells, 254 N. Y. 451; Matter of Scott, 204 N. Y. Supp. 478.)

It is also urged that the absolute gift made in the 2d paragraph of the will cannot be cut down by precatory words. There is no doubt this is the true rule, but the latter part of tMs will, in the opinion of the court, shows as clear an intention to cut down the absolute gift if the testator’s wish is not carried out by Ms family moving to either Syracuse or Ithaca, as the 2d paragraph of the will does m mating the gift, and, therefore, the gift made in the 2d paragraph of the will is cut down or made conditional upon testator’s family complying with Ms wish expressed in the 3d paragraph of the will followed by a penalty m case they fail to comply.

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Related

In re National City Bank
244 A.D. 161 (Appellate Division of the Supreme Court of New York, 1935)
In re the Estate of Stulman
146 Misc. 861 (New York Surrogate's Court, 1933)

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Bluebook (online)
141 Misc. 748, 253 N.Y.S. 275, 1931 N.Y. Misc. LEXIS 1492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-bailey-nysurct-1931.