In re the Estate of Hobert

7 Misc. 3d 447
CourtNew York Surrogate's Court
DecidedSeptember 15, 2004
StatusPublished
Cited by1 cases

This text of 7 Misc. 3d 447 (In re the Estate of Hobert) 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 Hobert, 7 Misc. 3d 447 (N.Y. Super. Ct. 2004).

Opinion

OPINION OF THE COURT

Anthony A. Scarping, Jr., S.

[448]*448This is a proceeding brought by The Bank of New York (petitioner), as successor trustee of the trust established in paragraph Second under the will of Russell Hobert (decedent) to: judicially settle its final account, approve the legal fee of Magdalen Gaynor, Esq., approve the legal fee of Donald S. Klein, EC., approve the legal fee of Permutt & Permutt, direct payment of trust income accrued through the date of the death of the income beneficiary to her estate, direct payment of all trust principal to the executrix of the estate of Robert J. Hobert, and release and discharge the trustee. Objections were filed by Linda H. Robbins (objectant) asserting, inter alia, that the trust principal should be paid to her rather than to her father’s estate.

The decedent passed away on July 29, 1984, leaving a will dated June 4, 1958, which was duly admitted to probate. Paragraph Second of the will directed the executor to set aside one third of the net estate and, from that sum, pay $2,500 outright to his spouse, Gladys Hobert, and hold the rest in trust for Gladys, paying her the net income for the duration of her life. Paragraph Second (b) directed the trustee, upon her death, to pay the remaining trust assets: “in the same manner hereinafter provided for the disposition of my residuary estate.” Paragraph Fourth bequeathed the remainder of the estate to Robert, the decedent’s son. When Gladys passed away in April of 2003, the trust ended. However, Robert had predeceased her in April of 1994. Robert’s will left 50% of his estate to his wife, Donna M. Hobert, and 50% to Linda Robbins, his daughter, who is the objectant.

The petitioner seeks approval of the payment of all trust principal to the executrix of Robert’s estate, Donna Hobert. Petitioner’s memorandum of law in support of its position asserts that Robert’s interest in the balance of the trust principal became indefeasibly vested at the time of the testator’s death and must be distributed to Robert’s estate.

Objections 1, 2 and 7 address the disposition of the trust remainder. The objectant contends that Robert’s interest in the residue did not vest indefeasibly until the death of the life tenant. Therefore, because the remainderman predeceased the life tenant, the trust principal passes by intestacy to her as the decedent’s sole heir. The executrix of Robert’s estate has filed a brief in support of the petitioner and in opposition to the object-ant.

The court’s primary consideration in construing a will is to determine the testator’s intent, as gleaned from a sympathetic [449]*449reading of the entire will (Matter of Larkin, 9 NY2d 88, 91 [1961]). If a will reveals a dominant purpose or plan, the individual parts must be interpreted in accordance with that plan, and the actual purpose of the testator be given effect as far as possible (Matter of Fabbri, 2 NY2d 236, 240 [1957]; Matter of Larkin, 9 NY2d at 91, supra).

The testator’s dominant purpose was clearly to benefit his wife and son, having named them as his heirs individually and unconditionally. However, Robert’s enjoyment of the gift of the residue of the trust is postponed during Gladys’ life. The court must determine whether the testator intended for the gift to vest immediately and indefensibly, or whether vesting of the gift was subject to divestment upon the remainderman’s failure to survive the life tenant.

EPTL 6-4.7 defines “a future estate indefensibly vested” as one created in favor of one or more ascertained persons in being which is certain to come into possession and cannot be defeated or abridged. The objectant asserts that the remainderman was granted only a “future estate vested subject to complete defeasance.” EPTL 6-4.9 defines that interest as one in favor of ascertained persons in being, which would become an estate in possession upon the expiration of the preceding estates, but may end or be terminated by the creator at, before or after the expiration of the preceding estates.

The objectant contends that, because the trustee was instructed to terminate the trust and dispose of the remainder only after the death of the lifetime beneficiary, the decedent intended to create a remainder which was contingent upon Robert surviving the life tenant. The objectant asserts that, at the time the will was drafted, the common law generally required that, in such a situation, the lapsed interest would pass to the decedent’s intestate distributees, citing Matter of Urchs (20 AD2d 291 [1964], mod on dissenting op of McNally and Witmer, JJ., 15 NY2d 893 [1965]). She claims that, with the death of her father, she is the decedent’s sole intestate distributee.

While the general presumption is that a testator’s intestate distributees are to be ascertained as of the time of the decedent’s death (Matter of O'Brien, 24 AD2d 87, 89 [1965]), that assumption does not necessarily apply in situations like that here, where the gift is deferred and a life estate intervenes (Matter of Gulbenkian, 9 NY2d 363, 369 [1961]; Matter of Larkin, 9 NY2d at 91, supra). The court must then construe the testator’s intentions from the language of the will (Matter of Gulbenkian, 9 [450]*450NY2d at 370), neither adding nor subtracting words (see Matter of Krooss, 302 NY 424, 428-429 [1951]).

The testator chose not to include the phrase “or his issue” in paragraphs Second and Fourth, but simply made the gifts to Robert unconditionally, “for his own use and benefit, absolutely and forever.” The testator could easily have designated his grandchildren, issue, or distributees as alternate beneficiaries by adding those words to the will, while omitting “for his own use and benefit, absolutely and forever.” However, he chose not to do so. The court cannot rewrite the will by presuming that the testator intended for the trust remainder to pass by intestacy, because there is no language in the will to support such a result, and no authority in the court to add the necessary language (id. at 428). The testator’s intent must be divined from the words and provisions the will does contain (Matter of Gulbenkian, 9 NY2d at 370).

The estate in the trust remainder was created in favor of an ascertained person (Robert), was certain to come into possession at a specified time (upon Gladys’ death), and is not subject to conditions which would defeat or limit it, nor does the will describe any event which triggers the termination or limitation of Robert’s rights in the trust res. Therefore, Robert’s interest falls within the EPTL 6-4.7 definition of a “future interest indefeasibly vested.”

This conclusion is supported not only by the statutes, but also by the canons of construction. Robert was designated as beneficiary by name, rather than as a member of a class (see Matter of Akins, 88 Misc 2d 948 [1976]; Matter of Baer, 147 NY 348 [1895]), the gift was not subject to a condition or contingency (see Matter of Krooss, 302 NY at 428, supra), and the will included no words implying survivorship, such as “if he survive[s] me” or “to my son or his lawful issue” (see Matter of Gulbenkian, 9 NY2d at 369; Matter of Akins, 88 Misc 2d at 953, supra).

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7 Misc. 3d 447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-hobert-nysurct-2004.