McGill v. Trust Co.

121 A. 760, 94 N.J. Eq. 657, 9 Stock. 657, 1923 N.J. Ch. LEXIS 76
CourtNew Jersey Court of Chancery
DecidedMay 15, 1923
StatusPublished
Cited by40 cases

This text of 121 A. 760 (McGill v. Trust Co.) 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
McGill v. Trust Co., 121 A. 760, 94 N.J. Eq. 657, 9 Stock. 657, 1923 N.J. Ch. LEXIS 76 (N.J. Ct. App. 1923).

Opinion

Buchanan, V. C.

Dr. John Dale McGill died November 28th, 1912, leaving a will and a codicil thereto, both duly probated in Hudson county, under the provisions of which the Trust Company of New Jersey was made executor and also trustee. It assumed the duties of executor and trustee and has since been acting as such.

[659]*659The testamentary design, as expressed by the codicil, was broadly, that the income from the estate should be paid to his two children, Alexander and Eleanor (now Mrs. Mayer), during their lives, and at their deaths to their children—the corpus to go to such children of Alexander and Eleanor as should attain twenty-five years of age, upon their reaching that age. Eleanor has so far had no children; her brother has three—John, Alexander and Charles, all infants of tender years, -and a-11 in esse at testator’s death.

The original bill of complaint was filed by these three grandchildren of testator (by their mother, as next friend), alleging divers improper acts and omissions by the trustee, resulting in loss to complainants, and praying the removal of the trustee and an accounting from it, together with reimbursement of the alleged losses. Generally speaking, the misconduct alleged consists of disbursements out of, or charges against, corpus, which complainants assert should not have been made at all, or should have been charged against income instead of corpus.

The trustee’s answer denies some of the acts alleged, denies the impropriety of the charges against corpus, sets up matter in confession and avoidance and pleads res' adjudicata.

The trustee concedes, and indeed desires, that which all the other parties ask—that jurisdiction of the whole matter of the'trust estate and its administration be taken over by this court from the orphans court (where one or two accountings háve been previously had). I am satisfied that this is a case where that should be done. Issues are raised which can, of course, be determined only in this court, and a consideration of the divers matters involved makes it evident that equity will best be served by taking over jurisdiction in toto.

Testator’s daughter Eleanor, one of the life tenants, by her answer, admits most of the allegations of fact, but denies that any charges were made against corpus which should have been made against income, and denies that complainants have any interest in the estate. She proceeds with a counter-claim, [660]*660setting up that her father's attempted testamentary disposition, so far as concerns those provisions dealing with the gifts subsequent to the life estates to his own two children (Alexander and Eleanor), is void; that neither her own. possible children, nor Alexander's present or possible future children, nor anyone else, has any valid interest under the will and codicil; that she and Alexander have vested estates in remainder in the corpus, subject only to their own respective life estates; and that hence they are entitled to have the whole estate paid over to them immediately; and prays an interpretation of the will and a decree accordingly. She also makes allegations against the trustee as to its conduct and prays relief in that behalf, somewhat similarly to complainants. These should have been set up, in form, as a separate cause of action or counterclaim, since clearly the cause of action against the trustee in this behalf is entirely separate and distinct from the cause of action to establish her right to a remainder in one-half the corpus. Chancery Rule 59; Cf. Steerman v. Snow, 118 Atl. Rep. 696. The parties have all answered, however, and amendments in that behalf, if necessary, may he made; and will for present purposes be deemed to have been made.

Testator’s son Alexander, the other life tenant (and the father of complainants), filed an answer similar to that of his sister. He also filed a counter-claim against the trustee, including in his allegations a charge that the trustee wrongfully refuses to pay him any income since the commencement of this suit. To the counter-claim of his sister he files an answer submitting to the jurisdiction and determination of the court.

■ The trustee, by its answer to the counter-claim of Alexander, admits the refusal to pay income to Alexander since the commencement of this suit, and claims in justification thereof, the right so to do in order to be able to reimburse itself in the event that it be finally determined that it has made disbursements out of corpus which should have been made out of income.

[661]*661I. HAVE COMPLAINANTS ANY INTEREST IN TI-IE TRUST ESTATE ?

Testator was domiciled at his death (and for many years prior thereto) in Few Jersey, and it is not controverted that the validity and effect of his testamentary provisions are to be determined by the law of this state.

There are only four ways in which complainants could have acquired an interest in testator’s estate: (1) by direct testamentary gift; (2) by intestacy; (3) by resulting trust; (4) by assignment or transmission from someone taking under one of the three prior ways. Fo proof or claim is made that complainants have acquired any interest in this last manner; and they cannot have acquired anjdhing by intestacy or resulting trust, since Alexander and Eleanor are and were at testator’s death his only heirs-at-law and next of kin.

Examination of the will and codicil shows that there are no provisions under which gifts can be deemed to have been made to complainants except that part of the will which disposes of the equitable interests in the residuary estate given to the trustee, and that part of the codicil which does likewise.

The provisions of the will purport to make a general and complete disposition of the equitable interests in the residuary estate to and among testator’s descendants according to varying circumstances. The codicil purports to make such a general and complete disposition among testator’s descendants; but the plan or scheme of the will in this behalf is entirely different from the plan, of scheme of the codicil.- The latter does not contain mere amendments to the former; it is an entire substitute therefor.

"Where provisions of the codicil “conflict or differ from the provisions of said will, the said provisions of the codicil shall be effective and the provisions of the will which they change and abrogate shall be null and void and of no effect whatever.” This by testator’s express direction in the codicil, and as well also by operation of law. It is entirely clear upon examination and comparison, that the dispositions in the will were in[662]*662tended to be, and are, revoked 'by the dispositions in the codicil of the same subject-matter and among the same beneficiaries.

Being thus revoked they are definitely and finally nonexistent as operative testamentary provisions, just as much so as if testator had physically destroyed them, no matter whether or not the codicil’s substituted provisions, or any part thereof, be held invalid. Doubtless testator might validly have provided in the codicil that if the latter were held invalid the will’s provisions should be thereby revived, but he has not done so. We cannot interpolate such a provision, even though we may believe that testator would have done so if he had contemplated the possibility of the invalidity of the provisions of the codicil.

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Bluebook (online)
121 A. 760, 94 N.J. Eq. 657, 9 Stock. 657, 1923 N.J. Ch. LEXIS 76, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgill-v-trust-co-njch-1923.