National Bank of Commerce Trust & Savings Ass'n v. Crowell Memorial Home

148 N.W.2d 304, 181 Neb. 341, 1967 Neb. LEXIS 548
CourtNebraska Supreme Court
DecidedFebruary 3, 1967
Docket36393
StatusPublished
Cited by5 cases

This text of 148 N.W.2d 304 (National Bank of Commerce Trust & Savings Ass'n v. Crowell Memorial Home) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Bank of Commerce Trust & Savings Ass'n v. Crowell Memorial Home, 148 N.W.2d 304, 181 Neb. 341, 1967 Neb. LEXIS 548 (Neb. 1967).

Opinion

McCown, J.

This is an action for the construction and interpretation of a will. The executor, trustee, and charitable beneficiaries are ranged on one side, and two cousins, as heirs-at-law, on the other.

Octavia Heimer died May 25, 1963, and her will was ■duly admitted to probate on July 2, 1963. The first 13 paragraphs of the will, aside from preliminary recitations and provisions for payment of debts and expenses, contained 11 cash bequests, 4 of them to designated charities in the sum of $1,000 each, and 7 to named individuals all for $500 each. One individual also received a. collection of chinaware. Paragraph Thirteenth gave household goods, and personal effects in her home to Bernard Foutch, a cousin, and his wife, subject to directions as to selection of various items by other individuals. This was the only provision of the will in which the testatrix made any mention of any of her heirs-at-law.

Paragraphs Fourteenth and Fifteenth are those on which the conflict centers and they provide:

“FOURTEENTH: I give, devise, and bequeath to The National Bank of Commerce, Lincoln, Nebraska, in trust, upon the following terms and conditions, towit: That said Trustee shall hold the principal of said Trust funds intact and the principal thereof shall be invested in good, sound, interest-bearing securities yielding as high a rate of return as may be consistent with reasonable safety, and in the exercise of the judgment of said Trustee it may invest in bonds, preferred stock, or common stocks, which have had a satisfactory record of payment of dividends and is considered by said Trustee to be a sound investment for the purposes herein and *343 after deducting the usual and customary charge for handling said Trust funds, the remainder of the income therefrom shall be paid to the beneficiaries hereinafter named, in proportion to the amounts set opposite their names, to wit:

“(a) To the Gordon Hospital, Gordon, Nebraska, the income of the Trust to be used for the treatment and care of indigent people in said hospital or otherwise as may be determined by the Trustees thereof, in the sum ■of $10,000.00.

“(b) To the City of Gordon’s Good Samaritan Rest Home, Gordon, Nebraska, now in process of construction, the sum of $1000 provided that if the beneficiary of this bequest should be known by any other name which is authorized to accept gifts of this character which qualifies as exempt from inheritance tax, then and in that event the intent is hereby expressed to be that the bequest may be held by the Executor hereinafter named until a proper legal beneficiary can be ascertained.

“(c) To Tabitha Home, Lincoln, Nebraska, or such governing body of Tabitha Home as may be entitled to receive and use bequests, the income of which shall be used for the treatment and care of indigent people, the sum of $5,000.

“(d) To The Cedars Home for Children, 6401 Pioneer Boulevard, Lincoln, Nebraska, the income from which shall be used for the care and treatment of indigent children, the sum of $5,000.

“(e) To The College View Presbyterian Church, or such officers of said Church as may be legally authorized to receive and administer the same, the income from which shall be used by said Church for such religious or charitable purposes as the governing body of said Church shall decide, in the sum of $5,000.

“The said Trustee shall have the power to pool the investments of the aforesaid amounts and pay to each beneficiary the proportionate' share of the net earnings, if the Trustee shall desire to do so. The Trust herein *344 set up shall terminate fifteen years after my death.

“FIFTEENTH: All of the rest, residue, and remainder of my property, real, personal, or mixed, wherever situated, I give, devise, and bequeath to the National Bank of Commerce, Lincoln, Nebraska, in trust upon the same terms and conditions as are stated in the next preceding paragraph of this Will, with instructions and directions to said Trustee to add to the Trust accounts in the same proportion as stated therein, for the use and benefit of the beneficiaries named in said paragraph FOURTEENTH (a), (b), (c), (d), and (e), that is to say, the beneficiaries participating proportionately in this residuary clause are as follows, towit:

“(a) Gordon Hospital, Gordon, Nebraska, 10/25ths,

“(b) Gordon’s Good Samaritan Rest Home, Gordon, Nebraska, 5/25ths,

“(c) Tabitha Home, Lincoln, Nebraska, 5/25ths,

“ (d) College View Presbyterian Church, Lincoln, Nebraska, 5/25ths.

“said Trustee to retain the principal of said bequests as stated hereinbefore and pay the income therefrom to the aforesaid beneficiaries proportionately, as stated herein.”

Paragraph Sixteenth gives a conditional option to two tenants to purchase certain real estate.

Paragraph Seventeenth provides:

“SEVENTEENTH: The Trusts set out in the next two preceding paragraphs of this Will are for the specific purpose of establishing Memorials to> my father and mother, George H. Heimer and Anna Heimer, who were pioneer residents of Sheridan County, Nebraska, and for several years residents of the city of Lincoln, Lancaster County, Nebraska; and said Trustee is hereby charged with the responsibility of providing from the interest income from said Trust a suitable bronze placque at the permanent headquarters of each of the beneficiaries in substantially the following form:

“ ‘To the Glory of God and in memory of George H. *345 Heimer and Anna Heimer, a permanent Trust Fluid is set up by their daughter, Octavia Heimer, to give aid and comfort to those who are unfortunate and needy.’ ”

The remainder of the will dealt only with disposition of-taxes and appointment of executor.

The district court found that the will should be construed; that no trust was created under paragraph Fourteenth for the reason that there is no trust corpus described in paragraph Fourteenth; that the 15-year limitation set forth in paragraph Fourteenth applied only to paragraph Fourteenth and not to the trust created and established by paragraph Fifteenth; that paragraph Fifteenth is a valid residuary clause which established a charitable trust of all the residue; that the income from such trust property should be distributed to the four entities named in the respective fractions designated in paragraph Fifteenth. Two of the heirs-at-law have appealed.

The basic object of will construction is to ascertain the intent and purpose of the testator as shown by the will, and then give that intention effect if not contrary to law. See Berning v. National Bank of Commerce Trust & Savings, 176 Neb. 856, 127 N. W. 2d 723.

In reaching this objective, various rules and principles have been used or relied on by courts to support various kinds of reasoning as applied to the particular facts of a given case. “The right to dispose of property by will at death is favored by the law; it is a valuable right which will be sustained whenever possible. It is the policy of the law to uphold devises and bequests and, if possible, to enforce them consistently with rules of law. A will should not be invalidated except for compelling reasons.” Brown v.

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Bluebook (online)
148 N.W.2d 304, 181 Neb. 341, 1967 Neb. LEXIS 548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-bank-of-commerce-trust-savings-assn-v-crowell-memorial-home-neb-1967.