Merchants National Bank v. Crist

118 N.W. 394, 140 Iowa 308
CourtSupreme Court of Iowa
DecidedNovember 23, 1908
StatusPublished
Cited by11 cases

This text of 118 N.W. 394 (Merchants National Bank v. Crist) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merchants National Bank v. Crist, 118 N.W. 394, 140 Iowa 308 (iowa 1908).

Opinion

McClain, J.

— The deceased wife of John M. Crist died possessed of property of the value of about $12,000, which by her will was devised and bequeathed to the defendants, her children, subject to the following provision: “My beloved husband, John M. Crist, being now over seventy-two years of age and incapable of talcing an active part in business affairs of any kind, I hereby obligate and direct my said children to provide him all of the necessaries and take good care of him for the remainder of his life, and I hereby make his support and care for life a lien upon the property above mentioned. This provision in favor of my husband is made in lieu of his distributive share in the property that I own at the time of my death.” The three children were by the will designated as executors of the estate and authorized to sell and convey real or-personal property without order of court. The surviving husband, being duly served with notice of the provisions of the will, filed his written election to accept such provisions in lieu of his distributive share in his wife’s estate. Plaintiff asked to have the provision made in the will in behalf of the surviving husband subjected to the payment of its judgment, and the court found that the care and support which the defendants were by the will bound to provide for their father was of the value of at least $325 per year during the remainder of his life, and decreed that defendants, as executors, pay to the clerk of the district court to be applied on plaintiff’s judgment semiannually the sum of $162.50 so long as their father should live until plaintiff’s judgment should be satisfied.

i. wills: proviport! ii?ens-lp trusts" creditors rights. It will be noticed from the paragraph of the will above quoted that the executors are not made trustees for the purpose of carrying out its provisions in behalf of the surviving husband, but their duty is to settle the estate and to distribute the property among themselves as devisees and legatees; the duty to support and care for their father being [311]*311a duty imposed upon them individually, and the charge therefor being made a lien on the property devised and bequeathed to them. We think that the court erred in entering a decree evidently contemplating the control of the property by the executors so long as the husband should survive, and thus in effect creating a trust fund, the proceeds of which should be applied so far as necessary to make the payments upon plaintiff’s judgment. No complaint of the decree on this ground is made by the appellants; but, for the purpose of properly disposing of the •questions argued by counsel, it is necessary to consider the law in this respect, and we find that the will does not create any trust, but imposes a duty upon the three children, us devisees, to support and care for their father.This 'duty would become obligatory upon them by the acceptance of the provisions of the will in their behalf. Inasmuch, however, as the charge for care and support was made a lien .upon the property, plaintiff has properly proceeded in equity to subject the property so far as is necessary to the payment of whatever amount should be paid by defendants individually toward the satisfaction of plaintiff’s judgment.

That the provision for the surviving husband is not in the nature of a trust is decided in Riddle v. Beattie, 77 Iowa, 168, wherein the plaintiff, who had conveyed real estate to one Townsend in consideration of Townsend’s agreement to furnish support to plaintiff during life, asked to have such agreement enforced in equity as against the defendant, who had taken a conveyance of the land from Townsend, assuming the obligation to furnish the agreed support to plaintiff. In that case the court said: “The facts alleged in the petition do not establish a trust, arising either between plaintiff and Townsend, or plaintiff and Townsend and defendant. The petition shows that Townsend undertook to support plaintiff, and, in consideration of such agreement, the land ■ was conveyed to [312]*312him. There is not a word in the petition showing a trust arising in the transaction. Defendant held the absolute title, free from any trust, and became liable to plaintiff as upon any other contract, in case he failed to perform his obligation to support her. Defendant assumed and undertook to carry out Townsend’s contract, and, of course, became bound just as he was bound by the obligation of the contract, and not as a trustee.” So in this case the children, by accepting their mother’s property — and we assume that they have accepted the provisions of the will in their behalf by becoming executors thereof — have become bound to perform the duty imposed upon them by the will to support and care for their father, and the only substantial difference in principle between the case before us and the case cited is that here the charge is made a lien upon the property.

z' trust: rights of creditors. As the will creates no trust, the argument for appellant based on the doctrine of spendthrift trusts, so called, which is that, where property is left to a trustee, the proceeds to be used for the support of a designated beneficiary, the interest of such' ® . . beneficiary may not be subjected to the payment of his debts, is not pertinent, and we need not stop to discuss the question, as to which many authorities are cited, whether, in the absence of a specific provision terminating the rights of a beneficiary in case of bankruptcy or insolvency, a limitation will be implied such as will deprive his creditors of any claim upon the proceeds which would otherwise be paid to the beneficiary. This court has given some recognition to the doctrine of spendthrift trusts in Olsen v. Youngerman, 136 Iowa, 404, where it-is held that the trustee and beneficiaries can not by mutual agreement terminate such trust and' defeat the purpose of the donor to give to the beneficiary a support which shall be free from the claims of creditors. The courts in this country seem generally to have held that creditors can not [313]*313deprive such a beneficiary of the support provided for him out of trust property, at least so long as it is in accordance with his station in life. Baker v. Brown, 146 Mass. 369 (15 N. E. 783); Seymour v. McAvoy, 121 Cal. 438 (53 Pac. 946, 41 L. R. A. 544); Johnston v. Zane’s Trustees, 11 Grat. (Va.), 552, 569; Wales’ Adm’r v. Bowdish’s Ex’r, 61 Vt. 23 (17 Atl. 1000, 4 L. R. A. 819); Roberts v. Stevens, 84 Me. 325 (24 Atl. 873, 17 L. R. A. 266); Lee v. Enos, 97 Mich. 276 (56 N. W. 550); Moore v. Simmons, 2 Head (Tenn.) 545; Stow v. Chapin, 51 Hun, 640 (4 N. Y. Supp. 496); Wilder v. Clark, (City Ct.) 11 N. Y. Supp. 683.

3. Wills: provi- , vision for survmng spouse: rights In some of these cases emphasis is laid on the fact that the provision for the beneficiary is a mere gratuity from which creditors should have no advantage, and in this respect the present case is materially - . drfterent from those cited. Here the survivjng husband was entitled to a one-third interest in his wife’s estate of which no will of hers could deprive him without his consent, and the' share of her property which he might have taken would have become liable to be subjected to satisfaction of the claims of creditors.

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Bluebook (online)
118 N.W. 394, 140 Iowa 308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-national-bank-v-crist-iowa-1908.