In re the Estate of O'Brien

33 Misc. 2d 484, 229 N.Y.S.2d 242, 1962 N.Y. Misc. LEXIS 3571
CourtNew York Surrogate's Court
DecidedApril 5, 1962
StatusPublished
Cited by2 cases

This text of 33 Misc. 2d 484 (In re the Estate of O'Brien) 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 O'Brien, 33 Misc. 2d 484, 229 N.Y.S.2d 242, 1962 N.Y. Misc. LEXIS 3571 (N.Y. Super. Ct. 1962).

Opinion

William F. Hahn, Jr., S.

Petitioner as sole surviving trustee of a variety of trusts under the will of the testator has asked the court to construe the provisions of the testator’s will affecting the distribution of the proceeds of the trusts created by the testator for the benefits of Mary O’Brien and Kate O’Brien.

Both Mary O’Brien and Kate O’Brien have died and the funds held in trust for them during their lives are now distributable. A controversy has arisen over whether the remainder interests following their life interests vested at the time of their deaths or the death of the testator.

The Mary O’Brien trust is set up and the distribution provided for in subdivision 2 of paragraph “ third” of the will. The Kate O’Brien trust is set up in subdivision 1 of paragraph “ third” and the distribution is provided for in subdivision 6 of paragraph 1 ‘ third ’ ’.

The paragraph “ third ” in question is the residuary clause of the testator’s will and in all provided for five separate trusts; four to terminate upon the death of individual life beneficiaries and the fifth — a joint trust for a husband and wife — to terminate upon the death of the survivor.

Paragraph “second” and the portions of paragraph “third” providing for the trusts and their distribution are set fourth below. Irrelevant material has been eliminated and the excisions indicated with asterisks. The words parenthesized are my own and are included for informative reasons.

[485]*485second. I hereby give, devise and bequeath my residence known as No. 122 Rosa Road in the City of Schenectady, New York, and all my wearing apparel, jewelry, silverware, pictures, books, works of art, household furniture and furnishings, all my equipment in connection with my profession, and my automobiles, to my wife, hate o’brien, absolutely, or if she fails to survive me, to my brother, thomas o’brien of Mount Vernon, New York, or if both my wife and my brother fail to survive me, then to the children of my said brother thomas who survive me.

11 third. All the rest, residue and remainder of my property * * * I hereby give, devise and bequeath to my executors hereinafter named, in trust nevertheless, for the following uses and purposes, namely:—

“ 1. If my said wife, Kate O’Brien, survives me, the trustees shall hold the entire said rest, residue and remainder, less, however, the sum of twenty thousand dollars ($20,000.00) and a further sum of twenty thousand dollars ($20,000.00) and a further sum of twenty thousand dollars ($20,000.00) and a further sum of ten thousand dollars ($10,000.00) being a total of seventy thousand dollars ($70,000.00), which sums are hereinafter set up as separate and distinct trusts, for and during the natural life of my said wife, Kate O’Brien, and pay the net income to her.

“ 2. The sum of twenty thousand dollars ($20,000.00), shall be a trust fund, the interest thereof shall be paid during her natural life to my wife’s sister, mary o’brien, and a like sum shall form a trust fund, the interest thereof shall be paid to my wife’s sister, Margaret o’brien, during her natural life. At the death of said beneficiaries the said sums shall be paid to the children of my said brother, thomas, then living per capita.

3. The sum of twenty thousand dollars ($20,000.00), the trustees shall hold as a separate and distinct trust fund for my friend, Judge alvah fairlee of Schenectady, New York, during his natural life, and upon his death, or upon my death, if he fails to survive me, said sum shall be added to the trust fund for my brother thomas o’brien, if such trust fund is then in existence. If such trust fund is not then in existence, then the trustees shall distribute the principal of this trust equally among the then living children of my brother, thomas o’brien.

4. The above fund of ten thousand dollars ($10,000.00), the trustees shall hold as a separate and distinct trust fund for my friend, edward keigher of No. 121 Avenue A, Schenectady, New York, and his wife, during the life of the survivor of them, and upon the death of the survivor of them, or upon [486]*486my death, if neither of them survives me, the trustees shall distribute the corpus of this trust equally among the children then living of my brother, thomas o’bribe, per capita.

5. [Alternative Thomas O’Brien trust — never set up].

“ 6 Upon the death of my said wife, kate o ’bribe and brother, thomas o’bribe, the said trust fund shall be paid to my said brother thomas’ children equally per capita. For the purposes of this instrument all my estate shall be deemed personal property.

“ 7. [Power of invasion].”

Note: Paragraph “ third ” ends with subdivision 7.

Upon the death of the testator each of the five trusts were set up with the widow, Kate O’Brien, and the petitioner as trustees.

All six of the life beneficiaries are now deceased. The proceeds of three trusts have been distributed. The remaining two can now be distributed and the petitioner can finally terminate its trust responsibilities.

No conflict arose over the distribution of the first three trusts. These I will refer to as the Margaret O’Brien, Alvah Fairlee, and the Edward and Mary Keigher trusts.

The remaindermen in all five trusts were the children of testator’s brother, Thomas. There were three such children when the will was executed. The three survivied the testator. They survived the life beneficiaries, Alvah Fairlee and the joint life beneficiaries, Edward and Mary Keigher.

In the two distributions following the deaths of the life beneficiaries, Alvah Fairlee, Edward and Mary Keigher, the proceeds of the trusts were divided equally among the three children and there was no occasion for dispute.

The three children were named Thomas Cyrus, Helen and Mary. Only Mary now survives. First Helen died and then Thomas Cyrus. Both died without issue.

As aforesaid, Helen shared in the first two distributions. She died testate and left her entire estate to her sister, Mary.

After Helen’s death, the life beneficiary, Margaret O’Brien, died. The children, Thomas Cyrus and Mary were living. The proceeds of the Margaret O’Brien trust were divided equally between Thomas Cyrus and Mary. This division was in accordance with the directions of a decree which concluded an accounting proceeding. Thomas Cyrus had been cited, Mary executed a waiver. There was no controversy over the equal distribution proposed by the trustees in their account of proceedings. Thomas Cyrus and Mary entered into a written agreement for an equal distribution.

[487]*487Thomas Cyrus died next — predeceasing the life beneficiaries, Mary and Kate O’Brien. Both said beneficiaries are now deceased and the impending distribution of the proceeds of their trusts gives rise to the problems of construction before the court.

The controversy is between Mary and the executors of the estate of Thomas Cyrus. Mary claims the entire amount of the two funds and the executors claim one third of each fund.

The said executors contend that the remainder interests of the three said children, Helen, Thomas Cyrus and Mary, vested upon the testator’s death. Mary claims that the interests were contingent upon survivorship of the life beneficiaries and vested only upon the death of each life income beneficiary.

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Bluebook (online)
33 Misc. 2d 484, 229 N.Y.S.2d 242, 1962 N.Y. Misc. LEXIS 3571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-obrien-nysurct-1962.