Lewis' Estate

49 Pa. D. & C. 173, 1943 Pa. Dist. & Cnty. Dec. LEXIS 321
CourtPennsylvania Orphans' Court, Philadelphia County
DecidedDecember 12, 1943
Docketno. 566
StatusPublished

This text of 49 Pa. D. & C. 173 (Lewis' Estate) is published on Counsel Stack Legal Research, covering Pennsylvania Orphans' Court, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis' Estate, 49 Pa. D. & C. 173, 1943 Pa. Dist. & Cnty. Dec. LEXIS 321 (Pa. Super. Ct. 1943).

Opinions

Hunter, J.,

Exceptions of Francis H. Lewis estate

The first set of exceptions are those filed on behalf of The Pennsylvania Company, executor and trustee under the will of Francis H. Lewis, deceased (one. of the testator’s children), and D. Cardinal Dougherty, remainderman under said will. These exceptions raise the single question and charge error on the part of the learned auditing judge in failing to rule that the remainders created by the will of Charles S. Lewis violated the rule against perpetuities and that one third of the trust estate thereby became vested in Francis H. Lewis (now also deceased) under the intestate laws.

[185]*185We are unanimous in our opinion that the learned auditing judge has correctly disposed of this question and his clear and satisfactory discussion of the reason for his decision leaves nothing to be added. These exceptions are therefore dismissed.

Exceptions of Newton children

Charles S. Lewis by the fifth item of his will conferred upon each of his children a special power “by last will to direct a distribution among its descendants in trust or absolutely, equally or unequally, amongst all or to the exclusion of one or more”.

Mary E. L. Newton by her will appointed a life estate to her husband, Richard Heber Newton. She died December 9,1913. He survived her one year and died December 19, 1914. The husband was a stranger to the power, and the appointment to him of a life estate was void.

She directed, after the death of her husband and until the death of her last surviving child, that income be distributed to her children and their descendants living at each quarterly or other convenient period of distribution.

She conferred upon her husband power by his last will to modify the foregoing trusts for her children in such way and manner that the shares of those who are less advantageously situated may be equalized with the shares of those who are from other sources otherwise provided for.

She gave to her trustees power to pay sums out of principal, should the income of a child he inadequate for its proper maintenance and support, to acquire a permanent home, or if an emergency should arise such as illness.

The children of testatrix to whom the above benefits were appointed were proper objects of the power.

[186]*186She conferred upon her last surviving child, should all die without descendants, a power to appoint to charity. This was a violation of the power which was restricted to descendants.

She included among her appointees unborn descendants of her children, and in this respect also exceeded the power, which was confined to descendants living at the termination of the Lewis trust: Horwitz v. Norris, 49 Pa. 213; Wickersham v. Savage, 58 Pa. 365; Pepper’s Appeal, 120 Pa. 235; Fotterall’s Estate, 2 Dist. R. 146. No child of Mrs. Newton has had or now has issue, the youngest child being now 67 years of age.

The auditing judge sustained the life estates of the children as an authorized appointment under the power, and expressed no opinion as to the disposition of the principal at the death of the last surviving child.

Elizabeth N. Bosworth, one of the Newton children, died February 18, 1943, without issue. The auditing judge awarded her share of income by right of survivorship to the three remaining children.

Ordinarily, where life estates are separable and valid, questions as to the validity of remainders will not be determined until the death of the life tenants. However, because of the contentions of exceptants we will assume that the appointment in remainder is void, and that principal is vested in the Newton children under the provisions of their grandfather’s will made in default of appointment, and reserve the question whether the trust appointed for their lives is separable and is to be sustained as an active trust.

The Newton children contend:

(а) The exercise of the power of appointment by exceptants’ mother, Mary E. L. Newton, was totally void and did not divest the exceptants of the absolute estates given to them under the testator’s will.

(б) If the learned auditing judge was correct in holding that Mary E. L. Newton appointed valid life [187]*187estates to these exceptants, nevertheless, she having made no valid disposition of principal under her power, the exceptants have life estates with vested remainders, and these estates merge into absolute ownership, quired to appoint absolute estates, legal or equitable, appointment. All of her children were born in the lifetime of fheir grandfather, and the trust set up by her will terminates upon the death of her last surviving child. She having selected lives in being, all limitations made by her would be sustained under Warren’s Estate, 320 Pa. 112.

In our opinion Mrs. Newton had full authority under the will of her father to appoint life estates to her children and to protect them by a trust. She was not required to appoint absolute estates, legal or equitable. In the words of the power she was authorized “to direct a distribution amongst its [the child’s] descendants in trust or absolutely, equally or unequally, amongst all or to the exclusion of one or more”.

The donee of a special power has implied authority to appoint life estates: McClellan’s Estate, 221 Pa. 261; an exception to this rule being where there is but one member in the permitted class, in which case there can be but one distribution: Pepper’s Appeal, supra; Johnson’s Estate, 276 Pa. 291.

An appointment “in trust” was expressly authorized by the power, and an attack cannot be made upon the exercise of the power for that reason alone: Hays’ Estate, 288 Pa. 348; Penrose’s Estate, 317 Pa. 444. We believe that the appointment, insofar as it was for the benefit of the children, who were the objects of the power, was fully authorized.

Forrest’s Estate, 8 D. & C. 461, cited by exceptants, is to be distinguished. There an appointment upon spendthrift trust was struck down because there was no authority to appoint in trust. Here, as in Hays’ Estate and Penrose’s Estate, supra, there is an express authority to appoint “in trust”.

[188]*188Nor was the power limited to the duration of the trust under the Lewis will, because the power was conferred using the words of the Lewis will, “anything hereinbefore or hereafter contained to the contrary notwithstanding”. The power to appoint principal “in trust” negatives any idea of an immediate distribution, and supports the appointment of continuing life estates in trust for the benefit of the objects of the power.

The important question is whether the valid parts of the appointment are possible of separation from those which transgress the power and are void.

Where a power is exercised in violation of the rule against perpetuities, an active trust created to pay income for life will not be defeated because of the failure or invalidity of the gift over of the corpus of the estate: Ewalt v. Davenhill et al., 257 Pa. 385; McCreary’s Trust Estate, 328 Pa. 513.

The same rule applies in the case of a special power where part of the appointment is good and part bad.

In Hays’ Estate, 288 Pa.

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Wickersham v. Savage
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Bluebook (online)
49 Pa. D. & C. 173, 1943 Pa. Dist. & Cnty. Dec. LEXIS 321, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-estate-paorphctphilad-1943.