In re the Estate of Littauer

285 A.D. 95, 135 N.Y.S.2d 582, 1954 N.Y. App. Div. LEXIS 3287
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 24, 1954
StatusPublished
Cited by11 cases

This text of 285 A.D. 95 (In re the Estate of Littauer) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York 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 Littauer, 285 A.D. 95, 135 N.Y.S.2d 582, 1954 N.Y. App. Div. LEXIS 3287 (N.Y. Ct. App. 1954).

Opinion

Halpern, J.

The petitioner is the former wife of the respondent Walter Wooster Bichard, who is the beneficiary under a testamentary trust of which the other respondent is the trustee. The will creating the trust directed that the income be paid to Walter Wooster Bichard during his lifetime and that the principal be paid over to his heirs at law upon his death. The petition alleges that the income has run about $23,000 per year.

The petitioner obtained a divorce in Cuba upon the ground of nonsupport, the decree directing that the defendant pay $150 per month for the support of a child of the marriage. There was also a provision in the divorce decree for alimony for the petitioner but her right to alimony terminated upon her subsequent remarriage.

At various times, the petitioner encountered difficulty in collecting the monthly installments, resort to an action at law having been necessary on some occasions, although it appeared upon the argument of the appeal that all installments had been paid to date and that the respondents’ attorney had given his assurance that they would be paid in the future as they fell due. [97]*97However, in view of the past difficulties, the petitioner was unwilling to accept this assurance and, in this proceeding, she sought an order from the Surrogate’s Court of Fulton County, under whose supervision the testamentary trust was being administered, authorizing and directing the trustees to pay the sum of $150 per month out of the trust income directly to the petitioner for the support and maintenance of the child.

The Surrogate held that he was without power to make such a direction and accordingly he dismissed the petition.

The petitioner contends that, under section 40 of the Surrogate’s Court Act, conferring broad equity powers upon the Surrogate’s Court, the court below had the power to grant the continuing direction to the trustee which she sought. Section 40 authorizes each Surrogate 1 ‘ To administer justice in all matters relating to the affairs of decedents, and * * * to try and determine all questions, legal or equitable * * * as to any and all matters necessary to be determined in order to make a full, equitable and complete disposition of the matter ”. It is certainly just and equitable that the beneficiary of the trust should support his infant child and the amount sought is conceded to be a fair and reasonable one, but the grant of power to the Surrogate’s Court does not authorize the Surrogate to make any and all orders or directions which serve the cause of justice and equity. The quoted section confers procedural jurisdiction upon the Surrogate to grant equitable as well as legal relief but, before he can grant relief in a particular case, it must appear that, as a matter of substantive law, grounds for the relief exist.

There is no general principle of substantive law which authorizes a court which has supervision of the administration of a trust, to make an allocation of the income of the trust for the support of the family of the life beneficiary, and to order payment of a part of the income directly to the family, whenever the beneficiary neglects to provide for his family’s support. The reported cases in which courts have made continuing directions of this ldnd fall into three categories, none of which embraces the case here presented.

(1) The trust instrument may itself, expressly or by implication, provide for the support of the family of the named beneficiary as well as for the support of the beneficiary himself. In such a case the wife or children of the named beneficiary may be regarded as additional beneficiaries of the trust and the court supervising the trust may accordingly direct the trustee to make appropriate payments out of the income for their support (cf. Oberndorf v. Farmers’ Loan & Trust Co., 208 N. Y. 367; Robin[98]*98son v. Robinson, 173 Misc. 985; Griswold on Spendthrift Trusts [2d Ed.], § 333, and 1 Scott on Trusts, § 157.1). There is no basis for construing the trust instrument in this case as making the family of Walter Wooster Richard additional beneficiaries of the trust. The trust is simply one to pay the income of designated shares of stock to Richard. There is no reference in the trust instrument to his support or to the support of his family.

(2) An assignment by the beneficiary of a trust to his wife for her support or the support of their children may be upheld, even though the trust is of the spendthrift type and an assignment of future income is not ordinarily permissible. (See Personal Property Law, § 15, and Real Property Law, § 103.) The rule prohibiting the assignment of the income of a spendthrift trust is designed to protect the beneficiary against his own improvidence, so that the income of the trust may be preserved for the support of the beneficiary and his family (cf. Real Property Law, § 98). An assignment within the family unit for the support of a member of the family does not violate this purpose but rather facilitates its execution. The rule prohibiting assignments is therefore held to be inapplicable to an agreement by the beneficiary that a designated part of the income should be paid to his wife for her support or the support of their children and the courts have directed the trustee to comply with the agreement. (Matter of Yard, 116 Misc. 19; Matter of Randolph, 159 Misc. 688; Bursch v. Bursch, 60 N. Y. S. 2d 633; Restatement, Trusts, § 157, comment a; 3 Syracuse L. Rev., 326, 327; 3 Bradford Butler on New York Surrogate Law & Practice, § 2491; Griswold on Spendthrift Trusts [2d Ed.], § 338; but see Matter of Tompkins, 28 Misc. 351.)

But it does not follow from these cases that, in the absence of an assignment by the beneficiary, the members of the family have an independent right to obtain a share of the income directly from the trustee. The beneficiary is still solely entitled to receive the income, in the absence of a voluntary assignment by him or the enforcement of the right to support by judicial process against him.

In the present case, there has been no assignment of any part of the income by the husband. On the contrary, the petition asserts the right to an allocation of a share of the future income payable to the husband, despite his refusal to consent to such an allocation. For this, we find no authority in the cases cited.

(3) The remaining class of cases, in which an order has been granted directing a trustee to pay part of the income for the [99]*99support of the beneficiary’s wife, consists of cases in which a judgment of divorce had been obtained in this State, providing for the payment of alimony or support, and in which the court held that a direction to the trustee was a proper method of effectuating the judgment (Wetmore v. Wetmore, 149 N. Y. 520; Hoagland v. Leask, 154 App. Div. 101, affd. 214 N. Y. 645; Thompson v. Thompson, 52 Hun 456; Matter of Moller, 157 Misc. 338). In these cases, the court merely accomplished directly by an order to the trustee what could have been accomplished more circuitously by a sequestration proceeding and the appointment of a receiver, under section 1171 of the Civil Practice Act. Under this section, the future income of a trust fund may be sequestered in proceedings to enforce the alimony provisions of a matrimonial decree (Scott v. Scott, 219 App. Div. 451, appeal dismissed 247 N. Y. 527; Ferguson v. Ferguson, 247 App. Div. 24).

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Bluebook (online)
285 A.D. 95, 135 N.Y.S.2d 582, 1954 N.Y. App. Div. LEXIS 3287, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-littauer-nyappdiv-1954.