In re the Judicial Settlement of the Account of Proceedings of Van Kleeck

16 Mills Surr. 417, 95 Misc. 40, 158 N.Y.S. 539
CourtNew York Surrogate's Court
DecidedApril 15, 1916
StatusPublished
Cited by9 cases

This text of 16 Mills Surr. 417 (In re the Judicial Settlement of the Account of Proceedings of Van Kleeck) 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 Proceedings of Van Kleeck, 16 Mills Surr. 417, 95 Misc. 40, 158 N.Y.S. 539 (N.Y. Super. Ct. 1916).

Opinion

Fowler, S.—

In this proceeding for the judicial settlement of the accounts of the trustee of James D. Ingersoll it becomes necessary to construe the 2.d paragraph of the will of Mr. Ingersollj which is as follows: “ Second. I give and bequeath unto my executors and their survivors in trust five thousand ($5,000) dollars, to be by them safely invested, and the income of the same to be handed to Mrs. Daniel W. Leeds, wife of Daniel W. Leeds, and at her decease the principal to go to her daughter.” The surrogate must determine whether the re-mainder interest bequeath under the 2d paragraph of the testator’s will is a vested or a contingent interest.

Mrs. Leeds had only one daughter, Julia P. Brown, who predeceased her mother. The residuary legatees under the will claim that -the interest bequeathed to Julia P. Brown was contingent, and that upon her predeceasing her mother, Mrs. Leeds, it passed to the residuary legatees. It appears that Julia P. Brown died intestate in 1887, a resident of the State of ¡New Jersey, leaving her surviving her husband, Charles E. ¡Brown, and two sons, Harold W. Brown and Charles E. Brown, [419]*419Jr. The husband and children of Julia P. Brown claim that the remainder was vested in Julia P. Brown, and that on her demise the title to the $5,000 legacy devolved under the laws of the State of ¡New Jersey upon her surviving husband.

The residuary legatees, on the other hand,, invoke the'rule that where a devise or bequest is made through a power in trust, or solely through a direction to pay or convey at a future time, it is contingent. This rule. I regard as a settled rule of construction, and yet it has recently been considered by the Court of Appeals in Cammann v. Bailey (210 N. Y. 19), and Dickerson v. Sheehy (209 id. 592), in such .a way as to occasion an expression of doubt whether or not the rule was a settled principle of construction applicable in all instances. In Fulton Trust Co. v. Phillips (164 App. Div. 498, 505), Mr. Justice Ingraham concluded as follows: “With much diffidence and a confession of my inability to deduce from the authorities any rule that can aid in the construction of a will presenting these features I can only say that endeavoring to the very best of my ability to follow the directions of the Court of Appeals it seems to me that we are required to hold that in this case it was the intention of the testatrix that * * * the estate vested.”After a careful investigation of the decisions Justice Ingraham was obviously unable to state with any degree of confidence when the rule applied to a particular case. It is thus apparent that while the rule is well recognized by the courts of this- State, the judicial desire to construe estates as vested rather than as contingent has led the courts to subordinate a rule of property to a construction dependent upon the ascertained intention of the testator. (Steinway v. Steinway, 163 N. Y. 183.) As Chief Judge Cullen well said in substance in Oammann v. Bailey, one of the effects of the uncertain application of the rule is that in each instance counsel is justified in insisting, if not actually required to insist, that his client should obtain the decision of the court of last resort upon the construction of an [420]*420interest devised and bequeathed in a direction to convey or divide. But whatever doubts the judiciary may feel in the application of settled principles to concrete cases, they have no place in so plain a case as this.

The three decisions just referred to all recognize the rule indicated as an existing rule of construction. A rule cannot be doubtful and remain a rule. Consequently if the remainder interest in this case is bequeathed solely in a direction to convey or divide, it is undoubtedly incumbent upon the surrogate to decide in conformity with the rule that such interest is contingent. But having in mind another paramount and influential rule of courts of construction, that an estate must be construed as vested and not' as contingent whenever possible, and also the manifest reluctance of our appellate courts to invoke the rule which makes an estate contingent, when transferred by a power in trust,-1 -am nevertheless of the opinion that the true construction of -the language of the 2d paragraph of the will makes the remainder, now under consideration, a vested remainder. It will be observed that the testator did not direct -that upon the death of Mrs. Leeds the trustee was to pay -over the principal to the daughter; the will in substance only provides that the executors should hold the $5,000 in trust, and during the life of Mrs. Leeds pay oyer to her the income, and that upon the death of Mrs. Leeds the principal should “ go to ” her daughter. There is here no express direction that the remainder interest should be paid to the daughter by the trustee or through the interposition of a power in trust reposed in the executors. There is evident no such trust or power in trust. The trustee was by the will given the title to the $5,000 only in order that he might hold the same in trust for the life of the beneficiary. When the trust ceased the estate or title of the trustee ceased ipso facto. The testator himself," in fact, disposed of the remainder when he created the trust. When the trust ceased he provided that possession of the principal, or [421]*421remainder interest, ‘ was “ to go to her daughter.” Obviously the rule laid down in Cammann v. Bailey and Dickerson v. Sheehy (supra), has no application where there are words of direct gift. In this'case the words "“ principal to go- to her daughter ” are in effect words of direct and immediate gift. It is the same as if the testator had said “ upon the decease of Mrs. Leeds I give the principal to her daughter.” Indeed, it has recently been- held that the words “ shall pass to ” are words of direct gift. (Whitwell v. Whitwell, 146 App. Div. 270, 272.) I deem the words “to go to her daughter” more expressive of an immediate gift than the words “ shall pass to.” The words in the will now here to my mind clearly indicate ownership of the remainder m praesenti, not in futuro. The words “ to pass to ” are susceptible of a future 'operation; they possibly indicate a transition or suspension of title, whereas the words “ to go to ” readily imply only a present and direct gift.

Therefore I conclude that the language of the will is sufficient to indicate an intention that the trustee should hold the legal title to the $5,000 fund during the lifetime of Mrs. Leeds, meanwhile paying to her the income, but that her daughter should have the remainder interest, eo instanti, but to take effect in possession upon the termination of the preceding life estate. It is as if the testator had stated that he gave $5,000 to “ A ” for life, and at her decease the sum. of money was to- belong to her daughter. In that case it would be too clear for argument that the remainder interest was vested. It is immaterial that in this ease the present estate, upon which the remainder interest is limited, is bequeathed in trust. The trustee takes -only an estate sufficient to enable him to- execute the trust. (Real Prop. Law, §§ 100, 101, which are made applicable to an estate in personal property by Pers. Prop. Law, § 11 ; Losey v. Stanley, 147 N. Y. 560 ; Matter of United States Trust Co., 78 Misc. Rep. 227, 235.) The interposition of a trust estate [422]*422never prevents tibe vesting of a remainder interest. (Embury v. Sheldon, 68 N. Y. 227 ; Doscher v. Wyckoff, 132 App. Div. 139.)

This will before me requires the 'application of the principle that words such .as “ on,”'

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16 Mills Surr. 417, 95 Misc. 40, 158 N.Y.S. 539, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-judicial-settlement-of-the-account-of-proceedings-of-van-kleeck-nysurct-1916.