Marquette University School of Medicine v. First Wisconsin Trust Co.

198 N.W. 382, 183 Wis. 516, 1924 Wisc. LEXIS 191
CourtWisconsin Supreme Court
DecidedApril 8, 1924
StatusPublished
Cited by2 cases

This text of 198 N.W. 382 (Marquette University School of Medicine v. First Wisconsin Trust Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marquette University School of Medicine v. First Wisconsin Trust Co., 198 N.W. 382, 183 Wis. 516, 1924 Wisc. LEXIS 191 (Wis. 1924).

Opinion

Doerfler, J.

The question litigated arises on the construction of- the last will and testament of Harriet L. Cra-mer, deceased, and involves a certain legacy to Edith Cramer, a daughter of John F. Cramer, a nephew of the deceased husband of the said Harriet L. Cramer. Precisely stated, the issue presented is whether the legacy to Edith Cramer is contingent upon her surviving the five and ten-year periods referred to in the will, or whether it became vested at the time of the death of the testatrix. The testatrix left an estate of over a million dollars, less than one fifth thereof being represented by real estate, and the balance by cash and securities consisting chiefly of stocks and bonds.

In the first subdivision of the will the testatrix appoints a trust company as the sole executor and trustee. The second subdivision is devoted principally to a disposition of various works of art, books, photographic slides,-etc., excepting that she also bequeaths $1,500 of Athenaeum stock to her cousin, Margaret Doyle, and 500 shares of stock in the Wisconsin Printing Company to one John W. Campsie. In and by the third subdivision, the rest, residue, and remainder of her property is devised and bequeathed in trust to her executor and trustee, with directions to convert the same into money; and in order that such conversion may be effected with due regard to the best interests of her estate, a time limit of five years is fixed for the conversion of the personal property and ten years for the real estate. The fourth subdivision consists of thirty-two paragraphs, in and by which the executor and trustee is required to pay the debts of the testatrix, the expenses of her last sickness and funeral expenses, for a monument, for perpetual care of her cemetery lot, and various legacies to relatives, friends, and [518]*518charitable institutions; while under the thirty-second paragraph the rest, residue, and remainder is to be held in trust for the benefit of the Marquette University School of Medicine.

The fifth paragraph of the fourth subdivision of the will reads as follows:'

“(5) To give to Edith Cramer, of the city of Milwaukee, daughter of John F. Cramer, nephew of my late husband, William E. Cramer, the sum of twenty-five thousand ($25,000) dollars at the expiration of five (5) years from the date of my death, and the further sum of twenty-five thousand ($25,000) dollars at the expiration of ten (10) years from the date of my death, and for that purpose I direct my said executor, and trustee to set aside the sum of fifty thousand ($50,000) dollars'from the funds in its hands at such time as in its discretion the same can be done with proper regard to- the best interests of my estate, and to invest said sum in good, interest-paying securities, paying the entire income thereof to the Marquette University School of Medicine, Incorporated, in trust, for the uses and purposes for which the income of the rest, residue, and remainder of the proceeds of my estate is given to said school as hereinafter provided, until the expiration of the period of five (5) years after my death, at which time twenty-five thousand ($25,000) dollars of said principal sum is to be paid to the said Edith Cramer. The income on the remaining twenty-five thousand ($25,000) dollars is h> be paid to said school for the purposes aforesaid until the expiration of ten (10) years after my death, when the balance of said principal sum shall be paid to the said Edith Cramer.”

Counsel for the medical school strongly urge that the ' language used in the fifth paragraph above set forth de- , notes an intention to distribute $25,000 at the expiration of five years from the date of the death of the testatrix, and the further sum of $25,000 at the expiration of ten years from such date; that such provision in the will cannot properly be construed as a gift to take effect in prcesenti, but that it becomes effective only upon the legatee surviving the periods named, and that the vesting of the gift is therefore [519]*519subject to a condition precedent; and it appearing further that the legatee having died before the expiration of five years from the date of the death of the testatrix, the legacy lapsed and therefore fell into and became a part of the estate to be disposed of under the residuary claitse of the will; that the language so used, being clear, determines the effect of such provision. On the other hand, opposing counsel claim that, regardless of the specific language used in the beginning of such paragraph, the entire paragraph and the provisions thereof, when read in the light of the whole will, denote an intention of a present gift and of a postponement as to the time of payment, and that therefore the element of time is not annexed to the gift but to the payment.

In Ohse v. Miller, 137 Wis. 474, 119 N. W. 93, it was held:

“The gift will be held to vest, if such appears to have been the testator’s intention, even though it be expressed in a mere direction to pay. The real inquiry is whether the element of time is annexed to the gift itself as a condition precedent or merely to the payment of it.”

In the construction of wills the principal canon to be observed is tp ascertain the intention of the testator from a review and consideration of the entire will, and “that in doubtful cases the law leans in favor of an absolute rather than a defeasible estate, and of a vested rather than a contingent interest; and that, while the general rule is that a gift will be deemed contingent when it is found only in a direction to divide at a future time, this is subordinate to the primary rule that the intent, to be collected from the whole will, must prevail.” Smith v. Smith, 116 Wis. 570, 93 N. W. 452.

With these rules of construction before us, we will proceed to examine and consider the pertinent provisions of the will in order to determine whether the bequest to Edith Cramer is vested or contingent.

From an examination of the entire will it will appear that [520]*520the testatrix had but few blood relatives towards whom she felt a testamentary obligation. In the third paragraph of subdivision 4 she sets aside the sum of $100,000 to be held in trust, directs such sum to be invested in good, interest-bearing securities, and the income thereof paid to her brother during his lifetime, and further provides that upon the death of the brother the principal sum shall fall into and become a part of the residuum, of which the medical school is the beneficiary. Attention is called to the provisions of such third paragraph in order to show that the testatrix clearly had in mind the residuum when she disposed of the principal sum after the death of her brother.

' In the fifth paragraph above set forth, however, the testatrix did not in express language refer to the residuum, nor did she include an express provision in her will under which, in the event of a lapsing of the legacy, the same should be added to the residuum, or that it should be disposed of under the residuary clause. Having had in mind the residuum in the third paragraph, the absence of such clause in the fifth paragraph becomes important and significant. It may be truly said that even without an express provision, if it had been the intention of the testatrix to create a contingent legacy instead of a vested one, this legacy would, as a matter of course, fall into the residuum and be disposed of under the residuary clause.

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Related

Haugan v. Chester
220 N.W. 383 (Wisconsin Supreme Court, 1928)
Miller v. Douglass
213 N.W. 320 (Wisconsin Supreme Court, 1927)

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Bluebook (online)
198 N.W. 382, 183 Wis. 516, 1924 Wisc. LEXIS 191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marquette-university-school-of-medicine-v-first-wisconsin-trust-co-wis-1924.