Martling v. Martling

55 N.J. Eq. 771
CourtNew Jersey Court of Chancery
DecidedNovember 15, 1896
StatusPublished
Cited by10 cases

This text of 55 N.J. Eq. 771 (Martling v. Martling) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martling v. Martling, 55 N.J. Eq. 771 (N.J. Ct. App. 1896).

Opinion

The opinion of the court was delivered by

Depue, J.

The bill in this case was filed for the construction of certain trusts created by a deed of conveyance of land. The prayer is (1) that the trust may be declared surrendered and determined ; (2) that the infant trustee (the original trustees being dead) may [779]*779be decreed to convey without consideration to such person as Mrs. Martling may direct; and (3) that new trustees be appointed in lieu of the infant trustee.

The premises described in the trust deed were conveyed to the trustees subject to two mortgages — the one given by Henry Van Glahn and wife to Abraham Van Valen, dated December 8th, 1849, to secure the payment of $1,000, and the other given by Peter Acker to Henry Van Glahn, bearing date May 1st, 1850, to secure the payment of $1,500.

The deed is to the trustees, their heirs and assigns, and the trusts declared are:

First. To permit Elizabeth Martling (now living) to have, receive and enjoy the rents, issues and profits thereof during her natural life, free from the control of her present or any future husband, and to her separate use, subject, however, to the limitation hereinafter mentioned.

Second. To sell and convey in fee-simple the whole or any part thereof, lease, rent or mortgage the same or any part thereof to such person or persons for such term or terms, for such sum or sums, and on such conditions as the said Elizabeth by writing under her hand of her own free will may direct.

Third. In case of a sale and conveyance as aforesaid, to invest the net proceeds, after paying said encumbrances, upon good and sufficient security, and pay her, the said Elizabeth, the interest accruing thereon yearly and every year, or to reinvest said net proceeds in the purchase of other real estate, as the said Elizabeth by writing may direct, to be held according to the trusts in the said deed declared.

Fourth. In further trust to sell and convey, if necessary, the whole or ,any part of said premises to pay off, satisfy and discharge the encumbrances now being and existing on the same as aforesaid.

Fifth. In further trust upon the death of the said Elizabeth to convey the lands held under the trusts therein declared, or such parts thereof as may then remain, or if the same shall then have been sold, to dispose of the proceeds thereof unto such person or persons as the said Elizabeth by writing in the nature [780]*780of a last will, executed by her in her lifetime, may have appointed and directed, and in default of such appointment, unto her heirs-at-law or next of kin, as may be.

The lands embraced in this conveyance were purchased with the separate estate of Elizabeth Martling, and by her and her husband conveyed to Richard Paulison, her brother, who made the deed which is the subject of consideration in this case.

The deed and the facts upon which this litigation arose are fully set out in the opinion of the vice-chancellor.

The grantees named in the deed by force of the conveyance took the legal estate in the premises conveyed, subject to the trust declared. The trust upon which the conveyance was made was not a use executed by the statute of uses (27 Hen. VIII. e. 10), so as to transfer the legal estate to the cestui que use. This statute was in substance re-enacted in this state by the seventh section of the act of March 17th, 1714. Rev. p. 165 66; Montgomery v. Bruere, 1 South. *282; Den v. Crawford, 3 Halst. 109, 113; Melick v. Pidcock, 4 Atl. Rep. 98. The settled doctrine in the construction of this statute, as established at an early period of the common law, is that the statute executes only the first use, on the principle that a use cannot be limited upon a use. Price v. Sisson, 2 Beas. 169 ; S. C., 2 C. E. Gr. 475; Croxall v. Sherered, 5 Wall. 268. And where the conveyance is by bargain and sale, and the trustees have active duties to perform which require a legal estate, such as to sell and convey and invest the proceeds of such sale, to lease, rent or mortgage, to sell and convey, and the like, in the execution of the trust, the legal estate becomes vested in the trustees, and remains. in them until the trusts are completely performed. 1 Cruise Dig. 386; Zabriskie v. Morris and Essex Railroad Co., 6 Stew. Eq. 22.

There is a distinction between a use executed by the statute of uses and an executed trust. Trusts are classified as executed- and executory on other considerations than those that arise under the statute of uses. An’ executed trust, as distinguished from an executory trust, is one in which the limitations and trusts are fully and perfectly declared; an executory trust is where the [781]*781limitations are imperfectly declared and the intent of the grantor is expressed in general terms. In an executed trust the duty of the trustee is to carry into effect the trust as declared; in an executory trust the manner in which the intent of the grantor is to be carried into effect is left substantially in the discretion of the trustee. The trusts set out in the deed are fully and perfectly declared, and in the sense here defined are executed trusts, and, the legal estate being in the trustees, an equitable estate' became vested in Mrs. Martling. Cushing v. Blake, 3 Stew. Eq, 689.

The contention on the part of the appellants is that the trusts having been completely executed, and the 'estate of the trustees thereby terminated, Mrs. Martling was entitled to have the legal estate conveyed to her. The ultimate destination of the trust estate or its proceeds, as directed by the limitations contained in the deed, is to Mrs. Martling’s heirs-at-law or next of kin. The trust, therefore, has not determined, and is a continuing trust until completely executed by the transfer of the estate to those who shall be ultimately entitled.

It is also clear that the power to sell and convey as she may direct, construed in'connection with the succeeding words directing the trustees to invest &c., and pay interest &c., or reinvest in the purchase of other real estate, to be held according to the original trusts, imports a sale for a consideration — a, bona fide price. The opinion of the vice-chancellor on this head is entirely satisfactory.

The other contention on the part of the appellants is that, under this deed, Mrs. Martling took a fee under the rule in Shelley’s Case. This contention presents the real question in this case. In equity, equitable estates are construed as legal estates and are subject to the same incidents, properties and consequences as under like circumstances belong to similar estates at law; and in giving effect to the limitations of trusts, courts of equity adopt the rules of law applicable to legal estates. Among these rules is the rule in Shelley’s Case, and a limitation which in legal estates would create a fee, under the rule just mentioned, will have a like effect with respect to an equitable estate. Cushing v. Blake, supra.

[782]*782The rule of law, laid down in Shelley’s Case, is that where the ancestor takes an estate of freehold with a remainder, either mediate or immediate, to his heirs, or the heirs of his body, the word “ heirs

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Cite This Page — Counsel Stack

Bluebook (online)
55 N.J. Eq. 771, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martling-v-martling-njch-1896.