Kentfield v. Kentfield

63 P.2d 1111, 8 Cal. 2d 75, 1936 Cal. LEXIS 728
CourtCalifornia Supreme Court
DecidedDecember 31, 1936
DocketS. F. No. 15509
StatusPublished

This text of 63 P.2d 1111 (Kentfield v. Kentfield) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentfield v. Kentfield, 63 P.2d 1111, 8 Cal. 2d 75, 1936 Cal. LEXIS 728 (Cal. 1936).

Opinion

SEAWELL, J.

The action which gives rise to this appeal was brought by the trustees of a trust agreement in which Edward E. Kentfield was trustor, praying for the settlement of certain accounts, fixing the compensation of said trustees and for instructions as to whether or not an accumulating fund created for the purpose of securing the payment of a [77]*77certain indebtedness owing by Edward E. Kentfield to his son John Kentfield, since deceased, as evidenced by six promissory notes executed by the father to the son, should be distributed to the father, the sole heir of said son, or whether, as contended by appellants, it should be held by the trustees for the future support and maintenance of said Edward E. Kentfield during the remainder of his life, and upon his death the unexpended remainder should go to the four children of said Edward E. Kentfield, as provided in said trust agreement. The notes were distributed to the father by the probate court, and the trial court herein held that said promissory notes were not extinguished by merger or otherwise and gave judgment that the trustees pay and deliver all of the balance of the funds remaining in their hands, to wit, the sum of $10,221.26, to the father, as all the other children for whose mutual benefit the fund was created had been satisfied. It is from that part of the judgment decreeing that the indebtedness represented by the promissory notes, is entitled to payment thereof from the trust fund, that the defendant Edward E. Kentfield, as the holder of said notes, is entitled to payment thereof from the trust fund, that the two daughters have appealed.

Edward E. Kentfield, the father of Florence E. Kentfield, Ethel C. Kentfield, John Kentfield and Howard E. Kent-field, was the party of the first part, and said four children were parties of the second part, to a trust agreement executed April 18, 1928. Said trust instrument, by consent of the parties thereto, was intended to and finally did terminate and abrogate a prior trust agreement between said parties executed October 27, 1921. By said 1928 trust agreement its trustees succeeded to all the property, real and personal, then in the possession of the former trustees, including certain warrants of Reclamation District No. 1500, which were at said time on deposit for exchange into warrants of the Sacramento and San Joaquin Drainage District. The exchanges of these warrants afterward made by the trustees for bonds are not material herein, other than that the proceeds of said warrants and bonds and other property, both real and personal, of said Edward E. Kentfield furnished the original corpus of the present trust fund. The two agreements were drawn to accomplish the same purpose and were alike in all substantial features. For some time prior to the execution of the first [78]*78trust in 1921 Edward E. Kentfield had been- and was at said time indebted to his two daughters and two sons, all of whom were parties to said trust agreement, on account of the shares of an estate which came to him and them by inheritance. He had used their property at various times and executed to them his promissory notes. His indebtedness to his two daughters was the sums of $3,3 65 and $10,887, respectively, and to his son John the sum of $10,770.92, and to his son Howard the sum of $5,186.32. Apart from his children he had other general creditors. The original estate, which was transmitted through his mother, is estimated to have been approximately of the value of $500,000. The specific fortune originally allotted to each child does not appear. The sums above set out were the amounts agreed upon in 1921, and the correctness of said figures is not questioned. The estate, which was in the control of the father for a number of years, became greatly reduced in value. Much of the valuable property was destroyed by the San Francisco fire of 1906, and in an attempt to restore it to income property he borrowed large sums of money and was subsequently forced to sacrifice valuable investments to meet pressing demands, with the result that the family inheritance became almost entirely depleted. The amount in controversy, approximately $10,000, represents all that remains of the original estate after the payment of large indebtednesses. Whether the bulk of the inheritance was lost through injudicious investments, improvidence, or was caused by unfortunate conditions not fairly chargeable to mismanagement are questions not now important.

The two daughters, in 1921, filed actions against their father and levied attachments on all of the property standing-in his name. It was because of these actions by the daughters and the indebtedness of the father to his two sons and others that said first trust agreement was executed. Disagreements as to the administration of the 1921 trust agreement led to its termination and the execution of the present instrument. Before the execution of the present agreement in 1928, the indebtedness of the father to the daughters had been entirely paid by the sales of property, and they had no further direct monetary interest in the matter. Notwithstanding the satisfaction of their claims, they appear as parties to the trust agreement, and they are the only appellants on this appeal. [79]*79Prior to the death of John the entire indebtedness to Howard had been discharged and the indebtedness to John had been reduced by the payment of substantial amounts. Besides, the estate, a small one, has paid in the administration of the trust several thousands of dollars to the trustees and attorneys. The last person of the group of children for whose benefit the trust was unquestionably executed who had any monetary interest in its further administration was John Kentfield, who has been for some time past deceased. His estate descended upon his father, who, by the way, has since died, and the father’s estate is now in course of administration Doubtless he died intestate and made no assignment of his interest or any part thereof. No claim is made that he did. The substitution of his administrator as respondent in the appeal has been entered.

There is no doubt that the trust agreements were drawn and entered into at the insistence of the daughters, who had his property under attachment, joined in by the brothers for their protection. That the main purpose, if not the sole purpose, of said trust agreements was to secure the payments set forth therein is made apparent by the language of the agreements themselves and the manner of the administration of the same. By said trust agreement of 1928 the trustees were given absolute power over and control of the property of the father, to handle it as their judgment should direct. It is one that no one in the father’s position would willingly enter into. It provided that from the funds of said trust the trustees should pay the balance due from the father to his two sons and that they shall pay to 'the said father monthly a sum sufficient for his support and maintenance, provided there are sufficient funds in said trust to pay said indebtedness to said sons; they shall continue to pay said sums for his support, provided that the trust fund “shall never be so far depleted thereby as to reduce the same below the amount necessary to pay and satisfy the said indebtedness to the said John Kentfield and Howard E. Kentfield”.

It is further provided that upon the death of the father the trustees shall pay said sons the balance due them, and upon full payment of said indebtedness the balance of the trust fund shall be divided equally between his said four children. If any of his said children shall die before said distribution, the wife or issue of such child, if any there be.

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Bluebook (online)
63 P.2d 1111, 8 Cal. 2d 75, 1936 Cal. LEXIS 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentfield-v-kentfield-cal-1936.