Packer's Estate

92 A. 70, 246 Pa. 116
Supreme Court of Pennsylvania·Decided July 1, 1914·No. No. 2; Appeal, No. 130·Published·Cited by 49 cases

Opinion

Opinion of

Mr. Justice Moschzisker,

As interpreted by this court, Asa Packer’s will created a trust to end twenty-one years after the death of the survivor of his three children, Robert, Mary and Harry, or sooner upon the decease of the last of these children with no descendant of any of them surviving [for a synopsis of the will, and our construction in this respect, see Packer’s Est. (No. 1) ]. The testator provided that whatever property might be in the hands of his trustees, not otherwise disposed of, on the termination of the trust, should be “paid over, transferred and delivered” to the descendants of these three children, and “in case there should be no one descendant of the said three children then living,” the property should be “divided into three parts”; and he directed, — “one thereof shall go to the children of my daughter Lucy E. Linderman and their issue, one thereof to my nephews and nieces herein-before mentioned, the remaining part shall go to the Le-high University and St. Luke’s Hospital.” The testator left surviving a widow, who died intestate November 17, 1882, and the three children, Robert, Harry and Mary, all of whom subsequently died without issue, thus bringing the trust to an end. His children were given the right to dispose by will of one-half of the portions of the estate respectively enjoyed by them during life (principal and income); and this they each did. The testator also left surviving three grandchildren, referred to by [121]*121him as “the children of my daughter, Lucy E. Linderman,” their mother having died before the making of his will. On October 29, 1912, the date of the decease of the last of the testator’s three children, Garrett B. Linderman was the sole surviving child of Lucy E. Linderman; and, although alive at the death of the testator, all the nephews and nieces mentioned in the will were then dead.

Garrett B. Linderman, Jr., contends that the bequest to the “children of Lucy E. Linderman and their issue” was a contingent executory remainder which did not vest until the termination of the trust estate, and that then the whole interest vested in him as the sole survivor of a class. He also claims that the nephews and nieces mentioned in the will were provided for as a class, that, since they all died during the preceding life-estates,' their interest never vested, and upon their decease one-half of such interest passed to him. During the continuance of the life-estate in the testator’s three children, Garrett B. Linderman, Jr., transferred to his trustee in bankruptcy “all the right, title and interest, present and future, vested or contingent,” which he “now has, or may have, under and by virtue of the provisions of the last will and testament of Asa Packer, deceased”; the trustee in bankruptcy assigned this interest to the Girard Trust Co. who assigned it to Mary Packer Cummings, and she reassigned it to that company, upon certain trusts for Garrett B. Linderman, Jr., and others. Garrett B. Linderman, Jr., now contends that at the time of the original assignment he did not possess a transmissible or assignable interest in the estate passing under the will of Asa Packer. The court below decided each of these points against him, and he has appealed.

All the serious contentions at bar concern the proper disposition of that portion of the residuary estate of Asa Packer over which the three children named in his will were given no power of appointment. Judge Gummey, who presided at the audit, well summarizes this branch [122]*122of the ease in the following excerpt from his adjudication : “The bequest to the remaindermen is set forth in the 31st paragraph of the will......and the question arises whether those entitled to take are to be ascertained as of the date of the death of the testator, Asa Packer,, or as of the death of the last surviving life-tenant; that is, did the remaindermen, upon the death of Asa Packer, take a vested or contingent interest, or, if not a vested interest, nevertheless, did they take a transmissible interest?......In approaching the question under consideration, it is important to remember the family relations as they existed at the time of Asa Packer’s death. Lucy E. Linderman died during her father’s life-time leaving to survive her three children, namely, Robert, Sallie and Garrett (particularly referred to by their respective names in 15th paragraph of Asa Packer’s will), all of whom were living at the time of Asa Packer’s death; and the nieces and nephews referred to in the residuary clause as being those “hereinbefore mentioned” are the ones named in the 14th paragraph of his will, viz: ‘Elisha P. Wilbur, Warren W. Wilbur, Helena Rathbun, Robert Rathbun, John Rathbun, and Hattie Fitch,’ all of whom were living at the time of Asa Packer’s death, though all subsequently died in the life-time of the surviving life-tenant, Mary Hannah Packer Cummings; so that when Asa Packer died the only lives standing in the way of the residuary bequests to these two classes were those of testator’s widow, Sarah, and his three children, Mary, Robert and Harry, for whom the trust was created, none of whom at that time had children, nor were children born to them at any subsequent'period ; and the conditions then existing have remained unchanged up to the present time, with the qualification that all of those then living are now dead, except Garrett B. Linderman, Jr., — in other words, at the time of the death of Asa Packer, the only contingency which could prevent the ultimate vesting of the estate in the three Linderman children [123]*123and the nieces and nephews, was the birth of issue to one or more of testator’s children, Mary, Robert, or Harry, of which issue at least one child or the descendant thereof must survive the period fixed by the testator for the termination of the trust; as this contingency never happened and cannot happen, the auditing judge is of the opinion that the Linderman children......and the nephews and nieces took — if not a vested, certainly a transmissible interest.”

Before undertaking a discussion of the appellant’s argument in detail we shall quote from the opinion of the Orphans’ Court in banc, disposing of the question of the validity of the assignment of the Garrett B. Linderman interest. The opinion states: “Garrett B. Linderman, Jr.,.......having survived the termination of the trust, would therefore be entitled in remainder to one-third of one-sixth of the residue, were it not for the assignment to the Girard Trust Company by his trustee in bankruptcy. The validity of this assignment was attacked on the ground that his interest......was not assignable or transmissible......(at the time of the original transfer or the subsequent assignment). The rule on this subject is aptly stated in a note in the Columbia Law Review, Vol. XIV, p. 66......‘The Bankruptcy Act provides that all property which the bankrupt could by any means have transferred or which might have been levied upon and sold under judicial process against him shall pass to his trustee in bankruptcy. The first description practically includes the second, so that transferability is the broad test of the trustee’s title; and this, in turn, cannot be reduced to any uniform rule since it depends upon the law of the jurisdiction in which the property is located.’ It is not necessary to go into the question as to whether his estate was vested or contingent;......as said by Chief Justice Gibson, in DeHaas v. Bunn, 2 Pa. 335, ‘It is entirely certain that such an interest (an executory limitation not vested in interest at the time of sale) may be transferred [124]*124by an assignment even at law, and consequently that it may be sold by execution.

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Packer's Estate, 92 A. 70, 246 Pa. 116 (Pa. 1914).

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