In re the Estate of Nurse

321 N.E.2d 537, 35 N.Y.2d 381, 362 N.Y.S.2d 441, 1974 N.Y. LEXIS 1178
CourtNew York Court of Appeals
DecidedNovember 21, 1974
StatusPublished
Cited by13 cases

This text of 321 N.E.2d 537 (In re the Estate of Nurse) is published on Counsel Stack Legal Research, covering New York Court of Appeals 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 Nurse, 321 N.E.2d 537, 35 N.Y.2d 381, 362 N.Y.S.2d 441, 1974 N.Y. LEXIS 1178 (N.Y. 1974).

Opinions

Rabin, J.

We are called upon to construe the will of Godfrey Nurse, made in 1961. Our attention is focused upon Article TENTH ” pouring over his residuary estate to an inter vivos charitable trust, created in 1956. Before the testator’s death in 1968, that trust was the subject of a 1967 judgment of the Supreme Court. The issue is whether by that judgment the trust was terminated or merely amended. If terminated, the pour over provision lapses and the residuary estate passes by intestacy to the statutory distributees, including the six appellants, who are testator’s half sisters and issue of predeceased half sisters and half brothers, in the West Indies. If amended, there is compliance with the controlling statute, EPTL 3-3.7, and the residuary passes to the Godfrey Nurse Fund, a charitable entity held and administered by the City of New York.

In pertinent part, EPTL 3-3.7 provides:

(a) A testator may by will dispose of or appoint all or any part of his estate to a trustee of a trust, the terms of which are evidenced by a written instrument executed by the testator, # * * provided that such trust instrument is executed and acknowledged by the parties thereto in the manner required by the laws of this state for the recording of á convey[385]*385anee of real property, prior to or contemporaneously with the execution of the wall, and such trust instrument is identified in such will.

“(b) The testamentary disposition or appointment is valid, even though:

“ (1) The trust instrument is amendable or revocable, or both, provided, however, that the disposition or appointment shall be given effect in accordance with the terms of the trust instrument, including an amendment thereto, as they appear in writing on the date of the testator’s death * * * if the instrument evidencing such amendment is executed and acknowledged in the manner herein provided for executing and acknowledging the instrument which it amends. V-A Mg TV w TV

“ (e) A revocation or termination of the trust before the death of the testator shall cause the disposition or appointment to fail, unless the testator has made an alternative disposition.”

For reasons which follow, we have concluded that the contested article of testator’s will effectively pours over his residuary estate to the Godfrey Nurse Fund, and agree with the Surrogate and the majority in the Appellate Division that the Supreme Court judgment constitutes an amendment to the inter vivos charitable trust originally created in 1956, within the meaning of EPTL 3-3.7 (subd. [b], par. [1]).

The Original Trust Instrument

Godfrey Nurse was a prominent physician in Harlem. On May 23, 1956 he created an irrevocable inter vivos charitable trust named the Godfrey Nurse Fund for the purpose of furnishing and appropriating “ funds necessary for the operation of the Godfrey Nurse Laboratory for Experimental Surgery at Harlem Hospital in the City of New York or its successor or successors.” The corpus of $105,000 was transferred to Thomas B. Dyett and City Bank Farmers Trust Company as trustees with instructions to pay the income and up to $10,000 per a.rmnm of the principal to Harlem Hospital to be used for building, equipping and operating the laboratory. The entire principal was to be paid over to Harlem Hospital at the end of 10 years. The trust instrument provided for termination “ [i]f at any time the said Laboratory shall cease to function as such ” in [386]*386which case the trustees were to pay over the principal to Harlem Hospital “ for the general purposes of such institution.”

The Will

On June 16, 1961, Dr. Nurse executed his will bequeathing $33,000 to friends, $5,000 to the Harlem branch of the YMOA, $25,000 to the University College of the West Indies, $50,000 to his sister and $25,000 to her son, his nephew. The controversy grows out of the will’s tenth article which reads as follows: ‘ ‘ All the rest, residue and remainder of my property, of whatsoever kind, nature or description and wheresoever the same may be situate, of which I may die seized or possessed, or to which I may be entitled at the time of my death, I give, devise, and bequeath unto City Bank Farmers Trust (Now First National City Trust Company), and Thomas B. Dyett, as Trustees of a certain inter vivos charitable trust made by me as settlor and dated 23rd day of May, 1956, and known as the Godfrey Nurse Fund for the benefit of the Godfrey Nurse Laboratory for Experimental Surgery At Harlem Hospital in the City of New York with direction to the Trustees to apply and distribute the said funds in accordance with the provisions of the said trust.”

The Supreme Court Proceeding and Judgment

For reasons which do not appear, the specific purpose of the trust — the creation of the Godfrey Nurse Laboratory — was never realized. Although some of the interest from the fund was applied with Dr. Nurse’s approval to surgical projects, lectures, scientific travel and scientific activities, by November of 1966 there remained over $117,000 of principal and accumulated income in the hands of the trustees. At that time the trustees petitioned the Supreme Court for a judicial settlement of their account and for instructions “ as to the proper disposi-. tion of the trust funds to the end that the judgment to be entered herein will direct the administration and expenditure of the trust funds in a manner which will most effectually accomplish the general purpose of the trust.”

Although by terms of the trust instrument, the entire principal was to be paid to Harlem Hospital at the end of 10 years, this payment was never made. Bather, on March 31, 1967, the [387]*387trustees, Dr. Nurse, the Attorney-General1 and the Corporation Counsel of the City of New York2 entered into a stipulation providing that after the payment of the trustees’ commissions and other necessary expenses, the funds held by the trustees be “ paid over to the City of New York to constitute a fund known as ‘ The Godfrey Nurse Fund ’ which is to be held and administered upon the following terms and conditions ”. By those terms and conditions, certain directors were named with provision for their successors, and the funds were directed to be spent on the Godfrey Nurse Lectures (to be delivered at Harlem Hospital or a place chosen by the Fund’s directors, the lecturer for each occasion to be a surgeon or distinguished worker in surgery to be chosen by the Director of Surgery at Harlem Hospital), the Godfrey Nurse Research and Travel Grants (for which “ Any Negro engaged specifically in the field of surgery shall be eligible ”) and the Godfrey Nurse Fellowship (“to be granted to a Negro surgeon of pre-eminant distinction ”).

The Supreme Court approved and incorporated the terms of the stipulation into its judgment, entered on May 29, 1967. Godfrey Nurse died 20 months later, on December 22, 1968, without making another will or changing by codicil the bequest of his residuary estate to the inter vivos trust. Thereafter, the will was admitted to probate and Dr. Nurse’s executor commenced the instant proceeding for construction of its tenth article, the residuary clause. The residuary estate amounts to over $250,000. As stated, the issue is whether the Supreme Court judgment, instructing the trustees as to the disposition of the trust fund, constitutes an amendment of the inter vivos

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Bluebook (online)
321 N.E.2d 537, 35 N.Y.2d 381, 362 N.Y.S.2d 441, 1974 N.Y. LEXIS 1178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-nurse-ny-1974.