In re the Judicial Settlement of the Account of Perry

5 Mills Surr. 101, 48 Misc. 285, 96 N.Y.S. 879
CourtNew York Surrogate's Court
DecidedSeptember 15, 1905
StatusPublished
Cited by1 cases

This text of 5 Mills Surr. 101 (In re the Judicial Settlement of the Account of Perry) 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 Judicial Settlement of the Account of Perry, 5 Mills Surr. 101, 48 Misc. 285, 96 N.Y.S. 879 (N.Y. Super. Ct. 1905).

Opinion

Woodbury, S.

It is contended by the three daughters of the testator, who are the residuary legatees under his will, that they are personally entitled to their respective distributive shares, after setting aside a fund sufficient to pay the annuities respectively bequeathed to Sara D. Avery, widow, and Mc-Dougal Avery, son, and to provide for the maintenance of the homestead, and their contention in this respect is based upon [107]*107the alleged invalidity of the seventh and eighth paragraphs of the will as offending the provisions of the statute against the suspension of absolute ownership of personal property.

The question, therefore, of primary importance in this case is whether, under the provisions of this will, the absolute ownership of personal property and the power of alienation of real estate is unlawfully suspended, and dependent upon the answer to this question being in the affirmative arises the further one of the remedy to be applied.

Section 2 of the Personal Property Law, as applicable to the primary question involved, reads as follows: “Section 2. The absolute ownership of personal property shall not be suspended by any limitation or condition, for a longer period than during the continuance and until the termination of not more than two lives in being at the date of the instrument containing such limitation or condition; or if such instrument be a will, for not more than two lives in being at the death of the testator; in other respects, limitations of future or contingent interests in personal property, are subject to the rules prescribed in relation to future estates in real property.”

■Section 32 of the Real Property Law, which prescribes the limitations on the creation of future, contingent interests in real property, and which is applicable in determining the validity of limitations respecting personal property, by force of the foregoing statute, reads as follows, so far as applicable to the facts of this case, viz.: “ The absolute power of alienation is suspended, when there are no persons in being by whom an absolute fee in possession can be conveyed. Every future estate shall be void in its creation, which shall suspend the absolute power of alienation, by any limitation or condition whatever, for a longer period than during the continuance of not more than two lives in being at the creation of the estate.”

These statutes are in pari materia and by reason of this fact, as well as the fact of the reference by the one to the other, are to be construed together, and hence it has become the settled [108]*108rule of law in this State, that the same general test applicable in determining whether there has been an unlawful suspension of power of alienation of real estate is applicable in determining whether there 'has been an unlawful suspension of the absolute ownership of personal property. Sawyer v. Cubby, 146 N. Y. 192; Gilman v. Reddington, 24 id. 9-13; Robert v. Corning, 59 id. 225; Law of Estates Created by Will, Vol. 1, p. 391. The power of alienation (except as respects powers, expressly granted or conferred) implies absolute ownership, and absolute ownership embraces and carries with it the power to alienate.

The statutory test, therefore, of what constitutes a suspension of the power of alienation as to real estate, and of absolute ownership as to personal property, is that it occurs only when there are no persons in being by whom an absolute estate in possession can be conveyed. Sawyer v. Cubby, 146 N. Y.. 192-196; Murphy v. Whitney, 140 id. 545.

The number of persons in which the ownership and right of alienation exists is unimportant; if by their all joining in a conveyance an absolute title can be transferred, the requirements are satisfied. Williams v. Montgomery, 148 N. Y. 519-526. The court in this case citing authorities, s'ays: “ The test of alienability of real or personal property is that there are persons in being who can give a perfect title. Where there are living parties who have unitedly the entire right of ownership, the statute has no application. The ownership is absolute whether the power to sell resides in one individual or in several. If there is a present right to dispose of the entire interest, even if its exercise depends upon the consent of many persons, there is no uhlawful suspension of the power- of alienation. The ownership, although divided, continues absolute.”'

It is now the settled law in this State that absolute ownership is suspended in only one of two ways: 1. By the creation of a trust which vests the estate in trustees. 2. By the crea[109]*109tion of future estates, vesting upon the occurrence of some future and contingent event. Steinway v. S'teinway, 163 N. Y. 183-194; Wilber v. Wilber, 165 id. 451-456; Everitt v. Everitt, 29 id. 39-71.

It is important in dealing with questions arising under this statute, limiting the power of alienation and of absolute ownership, that we do not confuse them with the limitations prescribed. by section 33 of the Real Property Law, which provides that, “Successive estates for life shall not be limited, except to persons in being at the creation thereof; and where a remainder shall be limited on more than two successive estates for life, all the life estates subsequent to- those of the two persons first entitled thereto, shall be void, and on the death of those persons, the remainder shall take effect, in the same manner >as if no other life estates had been created,” Under this section a vested remainder can be created on two successive life estates and no more, and if a third life estate is attempted to be created prior to the absolute vesting of the remainder it would be cut off and eliminated by force of the provisions of section 35 of the Real Property Law, and the prior estates would be held to be good. Thus, successive life estates to A, B and. 0, with remainder over to D (a person in being) violates the provisions of this section as being an unlawful limitation, but would not offend the statute of perpetuities because the owners of the several life estates, joining with the tenant in remainder could convey 'an absolute fee in possession. In other words, it would, satisfy the test that there must be persons in being by whom an absolute fee in possession can be conveyed. Purdy v. Hayt, 92 U. Y. 446-451. Under this rule it is unimportant how many or what estates are existing in the property, whether they are vested or contingent, whether there are many or few owners of the estates and interests, for, if by uniting they can convey an absolute estate in possession, there is no suspension whatever.

'Having determined in a given case that there is a suspen[110]*110sion of the power of alienation, or of absolute ownership, it then becomes important to inquire whether, under the terms of the instrument creating the estates, the suspension is an unlawful one, because the statute expressly recognizes the right of such suspension for and during the period of the existence of two lives in being at the time of the creation of the estate.

But in applying the test it must always be kept in mind that where, by the terms of an instrument creating an estate, there may be an unlawful suspension of the power of alienation or of the absolute ownership, the limitation is void, although it should, by subsequent events, turn out that no actual suspension beyond the prescribed period would have taken place.

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183 Misc. 567 (New York Surrogate's Court, 1944)

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5 Mills Surr. 101, 48 Misc. 285, 96 N.Y.S. 879, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-judicial-settlement-of-the-account-of-perry-nysurct-1905.