Pansey v. Pansey

340 A.2d 120, 115 R.I. 97, 1975 R.I. LEXIS 1125
CourtSupreme Court of Rhode Island
DecidedJuly 3, 1975
Docket73-189 M. P., 74-33 Appeal
StatusPublished
Cited by12 cases

This text of 340 A.2d 120 (Pansey v. Pansey) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pansey v. Pansey, 340 A.2d 120, 115 R.I. 97, 1975 R.I. LEXIS 1125 (R.I. 1975).

Opinion

*98 Doris, J.

This is a petition for a writ of certiorari seeking a review of a Family Court decree wherein a husband was ordered to pay support pendente lite for a wife and a minor child, to pay certain expenses for the upkeep of the marital domicile, and to pay a counsel fee to the wife's attorney. We issued the writ and also stayed the operation of the decree pending a hearing on the petition. In compliance with the writ, the pertinent records have been certified to this court by the clerk of the Family Court. Thereafter, the case was returned to the Family Court for a hearing on the wife’s motion seeking an award of a counsel fee to defend against the husband’s instant petition. After a hearing, a Family Court justice ordered the husband to pay a counsel fee of $1,020.60 within 30 days. The order was duly appealed to this court and was consolidated for hearing with the petition for certiorari.

The wife testified that she required the sum of $275.00 weekly for support for herself and the minor child of the parties. She also testified that her husband owned 2300 shares of Industrial National Bank stock which she saw in June 1972, in a jointly owned safe deposit box. She valued the stock at $60,000 and estimated her husband received from it $2,000 a year. She stated that he also received $10,000 annually from a certain RHP Trust of which he and his father were cosettlors. The wife further testified that her husband received the sum of $1500 yearly from the R. I. Air National Guard and over $20,000 annually as salary from Pansey Weaving Mills, Inc., and that his total annual income exceeded $30,000.

The husband testified that his weekly salary was approximately $190 plus an average income of $15 weekly from R. I. Air National Guard and that he was the sole stockholder of XD-3 Realty, Inc., the owner of the marital *99 domicile. He testified that he at no time ever owned 2300 shares of Industrial National Bank stock but that he had received 558 shares of Industrial National Bank stock from the estate of his late brother which he used as the corpus for a certain trust known as the R&S Trust. He further testified that certain monies he received from the trustees of the RHP Trust and the R&S Trust were for payment of taxes due and payable on the income of the trusts which under the provisions of the trust agreement were reflected in his personal income tax return. He testified that at various times during the marriage he received sums of money from his father to assist in paying his living expenses. The husband also testified that his tax return of 1972 reflected a total income of $35,000 which for tax purposes included the income from the respective trusts.

According to Petitioner’s Exhibit #2, in the course of 3 years the husband received a gross weekly salary from Pansey Weaving Mills, Inc. in the following amounts:

In 1971 the sum of $240.00 weekly;
In 1972 the sum of $240.00 weekly for 16 weeks, and the sum of $255.00 weekly for 36 weeks;
In 1973 the sum of $255.00 weekly.

The husband further testified that he had a balance in his checking and savings accounts of approximately $500.00 and an equity of approximately $200.00 in a 1973 motor vehicle.

The trial justice based his order for temporary support not only on respondent’s current earnings, but also on the testimony of his wife that he owned 2300 shares of Industrial National Bank stock and on his interest in the two trusts (RHP Trust and R&S Trust), copies of which are included in the record of the case. Regarding the R&S Trust, the trial justice found that the husband, even though divested of legal title, by reserving the power to change the trustees had such control over the assets of *100 the trust that it was only one step removed from a dry trust. As to the RHP Trust, which on January 1, 1971, had assets valued at $281,000, the trial justice found that the trustees had the sole, .absolute power to invade the corpus and accumulated net income so as to provide support, welfare, medical care, and comfortable maintenance for the husband if his own salary were not sufficient for those purposes.

I

The respondent argues that the trial justice misconceived the evidence and the law when he concluded that respondent’s interest in the R&S Trust and the RHP Trust was a part of respondent’s estate and was therefore to be considered when assessing the respondent’s ability to support petitioner and the minor child of the parties. He points to the terms of the R&S Trust which grant him the right to approve investments and remove the trustees but give him no power to terminate or revoke the trust. He states that although he retained the corpus of the trust as part of his estate for tax purposes, he had nevertheless divested himself of legal'ownership and control. He further argues that the only benefits he receives from the RHP Trust are -at the absolute discretion of the trustees, even though this trust by its terms is also part of respondent’s taxable estate.

In determining the proper amount of support to award for a wife and child out of the husband’s estate, the trial justice is required in the exercise of sound judicial discretion to measure the wife’s and the child’s needs and circumstances against the husband’s ability to comply with whatever order he might make. This ability, however, does not rest solely upon the husband’s existing earning capacity, but includes other available means of compliance, as well as his capacity to acquire these means by the exercise of reasonable efforts. Wattman v. Wattman, 109 R. I. 538, *101 288 A.2d 263 (1972). The question before us is whether the income or corpus of a support or discretionary trust constitutes an alternative means of compliance and therefore may be considered as part of a husband’s estate for the purpose of making an award for support of a wife and minor child.

Courts have generally allowed the interest of a beneficiary in a support trust to be subjected to claims for the support and maintenance of a wife and children. Knettle v. Knettle, 197 Wash. 225, 84 P.2d 996 (1938); Annot., 91 A.L.R.2d 262 et seq. (1963); 76 Am. Jur.2d Trusts §178 (1975). Underlying this rule is the rationale that it would be unreasonable to assume that the settlor of a trust intended to exclude entirely the wife and children of the beneficiary from the benefit of the trust, in the absence of any express language to this effect. In re Moorehead’s Estate, 289 Pa. 542, 137 A. 802 (1927). An alternative rationale for this rule is that public policy requires that interest of a husband in the income of a trust should be available for the support of a wife and minor child. Shelley v. Shelley, 223 Ore. 328, 354 P.2d 282 (1960); Annot., 91 A.L.R.2d 262 et seq. (1963).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State v. Dos Santos
701 A.2d 1025 (Supreme Court of Rhode Island, 1997)
Adam v. Adam
624 A.2d 1093 (Supreme Court of Rhode Island, 1993)
Santos v. Santos
568 A.2d 1010 (Supreme Court of Rhode Island, 1990)
Fricke v. Fricke
491 A.2d 990 (Supreme Court of Rhode Island, 1985)
Whited v. Whited
478 A.2d 567 (Supreme Court of Rhode Island, 1984)
Brierly v. Brierly
431 A.2d 410 (Supreme Court of Rhode Island, 1981)
Watmough v. Watmough
430 A.2d 1059 (Supreme Court of Rhode Island, 1981)
State v. Wallace
428 A.2d 1070 (Supreme Court of Rhode Island, 1981)
Barnes v. Quality Beef Co., Inc.
425 A.2d 531 (Supreme Court of Rhode Island, 1981)
State v. O'BRIEN
412 A.2d 231 (Supreme Court of Rhode Island, 1980)
Burns v. Janes
398 A.2d 1125 (Supreme Court of Rhode Island, 1979)
Dixon v. Royal Cab, Inc.
396 A.2d 930 (Supreme Court of Rhode Island, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
340 A.2d 120, 115 R.I. 97, 1975 R.I. LEXIS 1125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pansey-v-pansey-ri-1975.