Kountz's Estate

62 A. 1103, 213 Pa. 390
Supreme Court of Pennsylvania·Decided January 2, 1906·No. No. 1; Appeals, Nos. 107, 108, 109 and 110·Published·Cited by 49 cases

Opinion

Opinion by

Me. Justice Pottee,

The question in this case is whether the trust created by the will of testatrix violates the rule against perpetuities.

Mrs. Peninah W. Kountz died in November, 1899, survived by her husband, W. J. Kountz, and five children. A sixth child, W. J. Kountz, Jr., died three months before his mother. By her will, dated January 8, 1898, Mrs. Kountz appointed [392] her husband, William J. Kountz, executor and devised and bequeathed her residuary estate, as follows :

“ Fifth: The rest of my estate I give to my husband in trust for my children and grandchildren.
“ Sixth: He shall manage my real estate to the best advantage according to his judgment. For that purpose he may lease or sell all or part thereof, and invest the proceeds as he may consider best. Under no construction of this will shall purchasers be required to see to the application of the proceeds.
“ Seventh : He shall keep my stocks, bonds, money and the rest of my personal property invested in safe securities so as to yield a regular periodical income. The whole income from the real and personal property (less such reasonable expenses and charges, if any for management, as said executor may choose to withhold) shall be divided as follows:
“ 1. While all my said children continue to live each shall have one-sixth of the aggregate net income, unless in the discretion of my said executor any one should receive either more or less than the one-sixth.
“ 2. Should any of my said children die leaying children, but no husband or wife, as the case may be, that parent’s share of the income shall go to his or her children, in equal parts.
“ 8. Should any one leave a husband or a wife, but no child such husband or wife shall have his or her spouse’s share of the income for life, provided that he or she ‘has always had and maintained a good character and does not marry again ; ’ in case of marriage ‘ or proof of bad character ’ his or her right shall immediately cease.
“ 4. Should any one leave a husband or a wife and children, the deceased parent’s share of the income shall be-given to the surviving parent for the use of the survivor and children.
“ 5.- Should any one die without leaving a spouse or a child that one’s interest in the income and principal shall go to the surviving co-heirs, the children of any deceased heir to take such heir’s portion.
“ 6. After the decease of the last of my immediate children and the lapse of ten years from the date when my youngest grandchild shall have become pf age, the principal of the whole estate shall be equally divided among my grandchildren.”

[393] Other clauses of the will conferred additional and very extensive discretionary powers upon the trustee.

The court below held that in the will an antecedent gift was made to the grandchildren as a class, under which such of them who were in existence at the death of the testatrix took immediately a vested interest, subject to opening, to let in after-born members of the same class. In his opinion the subsequent provision postponing the time of distribution of the principal of the estate until ten years from the date when the youngest grandchild shall have become of age, was not of the substance of the gift, and while the provision for this postponement was undoubtedly void, yet, in his opinion, it did not vitiate the gift, which, it was held, was already complete in the grandchildren.

The appellants contend that the conclusions thus reached by the court below are incorrect, and maintain that as under the will the distribution of the corpus among the grandchildren is not to take place until ten years after the youngest child has become of age, (a period beyond a life or lives in being, and twenty-one years and a fraction thereafter) no interest or estate will vest in the grandchildren until that period arrives. And, further, that the trust cannot stand because a part violates the rule against' perpetuities, and the whole must therefore fall, and the estate be distributed to the next of kin, under the intestate laws.

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Kountz's Estate, 62 A. 1103, 213 Pa. 390 (Pa. 1906).

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