McEwen v. Enoch

204 P.2d 736, 167 Kan. 119, 1949 Kan. LEXIS 257
CourtSupreme Court of Kansas
DecidedApril 9, 1949
DocketNo. 37,618
StatusPublished
Cited by17 cases

This text of 204 P.2d 736 (McEwen v. Enoch) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McEwen v. Enoch, 204 P.2d 736, 167 Kan. 119, 1949 Kan. LEXIS 257 (kan 1949).

Opinion

The opinion of the court was delivered by

Arn, J.:

This action was for a declaratory judgment to construe a written trust agreement executed November 11, 1939. The beneficiaries of the trust were the defendants, a granddaughter and grandson of the grantor. The plaintiff trustee is the father of the defendants. The trust included certain real and personal property, and the controversy involves Article I of the agreement which is as follows:

“This trust shall be known as the Cyrus M. Beachy Trust No. 1.
[120]*120“Grantor agrees to and shall forthwith deposit, assign and convey to the trustee each and all the property enumerated and described in Exhibit A hereto attached and said property and any other property which may hereafter be delivered to the trustee pursuant to this agreement shall be held by the trustee and his successors in trust for the following uses and purposes:
“(a) Said trustee shall pay the net income from said trust to Owen Coe McEwen and Ellen McEwen, (grantor’s grandchildren), share and share alike, said payment to be made not less than semi-annually for the period hereinafter specified, (except that the trustee may, in his judgment and at any time, permit not to exceed fifty per cent (50%) of the net income to accumulate and be added to the corpus of the trust estate).
“(b) The comfort, support and happiness of the beneficiaries are the primary wish and concern of the grantor and said trustee is hereby authorized to utilize and devote all or any part of the corpus of the trust estate for such purpose if in his opinion it is necessary. The trustee is hereby authorized to make such payment out of the corpus of the trust estate to any beneficiary not only while such beneficiary is entitled to part of the net income, but at any time before such beneficiary may become entitled to the net income if, in the opinion of such trustee, such course is advisable or necessary.
“(c) In the event of the death of either of the beneficiaries named in paragraph (a) above before the termination of the trust hereby created and in the event such beneficiary die leaving issue him or her surviving, then such surviving issue shall take the part of deceased parent, per stirpes.
“(d) In the event of additional grandchildren such additional grandchildren shall share equally and under the same conditions as the beneficiaries mentioned in paragraph (a) above.
“(e) The trust created hereby shall be terminated when the youngest of the beneficiaries named in paragraph (a) above shall have attained the age of (40) or would have attained such age had he survived. Upon the termination of the trust estate the property shall pass absolutely to the beneficiaries named in paragraph (a) above. In the event such beneficiary or either of them dies before the date of the termination of said trust estate leaving no issue him or her surviving, then the portion which would have vested in him or her shall pass to his or her heirs under the statute of descents and distributions of the State of Kansas provided that this shall not include as heirs the surviving spouses of such deceased child. Issue of any deceased beneficiary shall take per stirpes and not per capita.” (Italics supplied.)

Article II of the agreement concerns the powers of the trustee and is of little importance to the question involved except to.note that the trustee had unrestricted judgment and discretion over the principal, and could incumber, exchange, sell or convey all or any part thereof without any liability whatsoever for mistaken judgment or business policy. The grantor released and waived any right to amend or revoke the trust agreement, and specifically provided that such grant was without reservation of any power to revest in the grantor any title to the property or to the income therefrom.

[121]*121At the time of execution of the trust agreement, to wit: November 11, 1939, the ages of Ellen McEwen (Enoch) and Owen Coe McEwen, beneficiaries thereunder, were eleven years and fifteen years, respectively. Plaintiff trustee pleads the trust agreement in full as a part of his petition, and seeks a construction of said trust agreement and an order instructing him with respect to his duties as trustee. The defendants’ answer admitted the execution of the trust agreement and alleged (a) the trust was void from its inception because it violated the rule against perpetuities; and (b) the corpus of the trust passed absolutely to the defendants upon execution of the trust agreement for the reason that since the trust was void, the agreement amounted to an absolute gift, and the trustee never had any function to perform thereunder.

Trial was had to the court upon a brief stipulation of facts as follows:

“1. That Cyrus M. Beachy also known as C. M. Beachy, died on the 18th day of February, 1945, testate, a resident of Sedgwick county, Kansas, and that his will, copy of which is hereto attached, marked ‘Exhibit A’, and made a part hereof has been duly admitted to probate in Sedgwick county, Kansas.
"2. That his daughter Bernice B. McEwen, predeceased said O. M. Beachy and died on the 24th day of January, 1945, leaving surviving her, her husband, John D. McEwen and her two children, namely Owen Coe McEwen and Ellen McEwen (Enoch), all of whom are parties to this cause.
“3. All of the above facts and matters shall be taken into consideration by the court in the trial of this matter and shall constitute the evidence introduced in the trial of this case.”

By the will referred to in the foregoing stipulation, the two defendants are now the sole beneficiaries, and apparently the only purpose of injecting the will into this lawsuit was to further demonstrate the donor’s plan to ultimately give all of his property to his two grandchildren, Owen Coe McEwen and Ellen McEwen Enoch (defendants). The trust agreement was executed and the purported trust created several years prior to donor’s death and the trust property was not a part of his estate in the probate court.

The trial court found that Cyrus M. Beachy at the time of execution of the trust intended ultimately to give the property to his two grandchildren and in event the trust was invalid, it was his purpose and intent to give the property to them immediately.

The court below also concluded as matters of law that an actual controversy existed over the construction of this trust agreement; that said agreement violated the rule against perpetuities; that the [122]*122gift to the defendants was accelerated by the dropping out of the prior estate and at the time of the execution of said instrument it constituted a direct gift to said grandchildren in equal shares. Thereupon it was decreed that the defendants, Owen Coe McEwen and Ellen McEwen Enoch, were the absolute owners of the property covered by the trust agreement and had been since its execution on November 11, 1939, and that the plaintiff trustee has never had, and does not now have, any duties to perform as trustee under the terms of said trust agreement.

From this judgment plaintiff trustee has appealed.

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Cite This Page — Counsel Stack

Bluebook (online)
204 P.2d 736, 167 Kan. 119, 1949 Kan. LEXIS 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcewen-v-enoch-kan-1949.