Matter of Trust Created by Agreement Dated December 20, 1961

944 A.2d 588, 194 N.J. 276, 2008 N.J. LEXIS 311
CourtSupreme Court of New Jersey
DecidedApril 3, 2008
StatusPublished
Cited by132 cases

This text of 944 A.2d 588 (Matter of Trust Created by Agreement Dated December 20, 1961) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Trust Created by Agreement Dated December 20, 1961, 944 A.2d 588, 194 N.J. 276, 2008 N.J. LEXIS 311 (N.J. 2008).

Opinions

PER CURIAM.

This ease involves the interpretation of the word “spouses” as used in a 1961 charitable trust settled by J. Seward Johnson of the Johnson & Johnson Company family. Martin Richards, the widower of Johnson’s daughter Mary Lea Johnson, argues that he satisfies the definition and thus qualifies as a potential beneficiary of the trust. The trial judge ruled in favor of Richards, and, over a dissent, the Appellate Division affirmed that judgment.

Roderick Newbold Ryan, Joseph R. Purcell, Eric B. Ryan, and Hillary A. Ryan (the heirs) appeal, as of right, from the Appellate Division’s decision, contending that the record does not support the trial judge’s conclusion that the word “spouses” was intended to include widowers like Richards. We have carefully reviewed the claims advanced by the heirs and have determined that they are unavailing. The record fully supports the trial judge’s findings and conclusions. We therefore affirm, substantially for the reasons expressed by the Appellate Division majority, In re John Seward Johnson 1961 Charitable Trust, 399 N.J.Super. 237, 944 A.2d 33 (App.Div.2006).

I

The facts of the case are detailed in the Appellate Division opinion and are incorporated here as if more fully set forth. For our purposes, it is sufficient to note that between 1939 and 1963 [280]*280Johnson created a series of trusts to benefit his family members. At issue is the December 20,1961, irrevocable charitable trust (the 1961 trust), naming four of Johnson’s six children, their spouses, and his eleven grandchildren as beneficiaries. The 1961 trust was an estate planning device to save taxes. According to the trust instrument, for a thirty-five-year charitable phase, all net income was to be distributed to “educational, religious, and charitable organizations.” After the charitable phase ended, the income and corpus could be distributed to the beneficiaries at the “absolute and uncontrolled discretion” of the trustees. In naming the beneficiaries, the trust used the following language regarding the distribution of the corpus:

After January 10, 1997, and for so long as this Trust shall be in existence, from time to time, and whenever in the absolute and uncontrolled discretion of the Trustees they deem it to be for his or her best interests, to use far or to distribute and pay over to and among the Grantor’s four children, MARY LEA JOHNSON RYAN, ELAINE JOHNSON WOLD, JOHN SEWARD JOHNSON, JR., and DIANA MELVILLE JOHNSON STOKES, their spouses, and their issue, or any one or more of them, in such shares as the Trustees may determine, to be his or hers absolutely, outright, and forever, and any or all of the Trust Property. [ (Emphasis added).]

The testamentary language authorizing the trustees to distribute income is almost identical, naming the Johnson children, “their spouses, and their issue, or any one or more of them” as beneficiaries. Nowhere in the trust is the word “spouses” defined.

In 1990, Mary Lea Johnson died, survived by her third husband, Martin Richards, and six children. In 1995, the trustees of the 1961 trust commenced a ninth accounting of the trust in anticipation of distributing the interest and corpus to the beneficiaries after the charitable phase ended. James Scott Hill, the scrivener of the trust and a trustee, believed that Richards continued to be a beneficiary of the trust despite his wife’s death. The other trustees, however, disagreed. They thought that Johnson’s failure to use the phrase “surviving spouses” indicated that he did not intend to include widows and widowers as beneficiaries. The trustees nonetheless acknowledged that it was possible to interpret the trust as including widowers, and as a result, they sought [281]*281judicial guidance regarding the construction of the trust in March 1996.

After years of trials and appeals,1 a plenary hearing was held in April 2003 regarding Johnson’s probable intent with respect to surviving and divorced spouses. The trial judge heard and assessed extrinsic evidence to ascertain the meaning of the ambiguous word “spouses.” That evidence included Johnson’s overall testamentary scheme; his direct involvement in creating the trust; and testimony from the parties and the scrivener, Hill. The judge gave substantial credence to Hill’s testimony, which he found “reliable, trustworthy, and very credible.” On the basis of all of the evidence, he ruled that surviving spouses were intended to be included as “spouses” but that persons divorced from Johnson’s legatees were not.2 The Appellate Division affirmed the trial judge’s ruling over the dissent of one judge.

II

The bone of contention between the appellate majority and the dissent was the testimony of the scrivener, Hill. Because the trust was ambiguous regarding the meaning of the word “spouses,” it is uncontroverted that portions of Hill’s testimony as scrivener were admissible. Indeed, we recently reiterated the standards for will [282]*282interpretation in In re Estate of Payne, a ease in which we allowed a scrivener to testify:

In interpreting a will, our aim is to ascertain the intent of the testator. When we say we are determining the testator’s intent, we mean his probable intent. We continue to adhere to the view of the doctrine of probable intent expressed in Fidelity Union[ Trust Co. v. Robert, 36 N.J. 561, 178 A.2d 185 (1962)]. In that case, the Court stated that in determining the testator’s subjective intent, courts will give primary emphasis to his dominant plan and purpose as they appear from the entirety of his will when read and considered in the light of the surrounding facts and circumstances. The trial court should ascribe to the testator those impulses which are common to human nature and ... construe the will so as to effectuate those impulses. More recently, this Court emphasized that courts are enjoined to strain toward effectuating the testator’s probable intent to accomplish what he would have done had he envisioned the present inquiry.
The trial court is not limited simply to searching out the probable meaning intended by the words and phrases in the will. Extrinsic evidence may furnish information regarding the circumstances surrounding the testator and should be admitted to aid in ascertaining the testator’s probable intent under the will. To be sure, the testator’s own expressions of his or her intent are highly relevant. Once the evidence establishes the probable intent of the testator, the court may not refuse to effectuate that intent by indulging in a merely literal reading of the instrument.
[186 N.J. 324, 335, 895 A.2d 428 (2006) (internal quotations and citations omitted); see also Restatement (Third) of Prop.: Wills and Other Donative Transfers § 10.2 (2003) (“In seeking to determine the donor’s intention, all relevant evidence, whether direct or circumstantial, may be considered, including the text of the donative document and relevant extrinsic evidence.”).]

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944 A.2d 588, 194 N.J. 276, 2008 N.J. LEXIS 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-trust-created-by-agreement-dated-december-20-1961-nj-2008.