Pennsylvania Co. v. Riley

104 A. 225, 89 N.J. Eq. 252, 4 Stock. 252, 1918 N.J. Ch. LEXIS 47
CourtNew Jersey Court of Chancery
DecidedJune 24, 1918
StatusPublished
Cited by5 cases

This text of 104 A. 225 (Pennsylvania Co. v. Riley) 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
Pennsylvania Co. v. Riley, 104 A. 225, 89 N.J. Eq. 252, 4 Stock. 252, 1918 N.J. Ch. LEXIS 47 (N.J. Ct. App. 1918).

Opinion

Leaming, V. C.

By this suit complainants seek judicial construction of the will of Eietta Alsfelt, deceased.

The provisions of the will, construction of which is herein sought, are as follows:

“6. I direct that out of the proceeds of the sale of my house or other property, one thousand dollars.shall be set apart and held in trust by my executor, for the education of Robert Lewis Read, child of my grand-daughter, Mrs. Florence S. Read, nee Riley, and in case of his death, the said sum shall be divided equally between my grandchildren, Frank A. Riley, Mary Riley, Joseph H. Riley, Robert Riley, Fietta J. Alsfelt, Knight Alsfelt, Robert Alsfelt and Rachel Alsfelt.
“7. I direct that the twenty-six thousand dollars coming to my estate from the sale of the Norwood, shall be held in trust by my executor, and the income therefrom shall be divided equally between by children, Mrs. Mary Riley and Mr. William H. Alsfelt, during their lifetime; and after their death, the principal shall be divided equally between my grandchildren, Frank g. Riley, Robert Riley, Joseph H. Riley, Mary Riley, Fietta J. Alsfelt, Knight Alsfelt, Robert Alsfelt and Rachel Alsfelt and Robert Lewis Read, son of Florence g. Read — nee Riley, or the survivors or heirs of them.”

At the death of testatrix she had disposed of the house referred to in the sixth item of the will above quoted, and had no other property which could be sold for or applied to the purpose named except $26,000; -that money was the proceeds of a purchase-money mortgage of $26,000 on the Norwood, which mortgage represented the $26,000 referred to in the seventh item of the will above quoted; the mortgage had recently been paid and the money was intact at the time of the death of testatrix. All other property of testatrix, and also $2,000 of the proceeds of the $26,000 mortgage, has since been used by the executors to pay debts of testatrix.

The first inquiry relates to the status of the bequest in the sixth item of the will.

This bequest is a demonstrative legacy. The circumstance that testatrix at her death did not own the property out of which she directed the bequest to be paid is not alone operative to wholly defeat the bequest. A demonstrative legacy, so circumstanced, assumes the status of a general legacy and should be paid from other personal assets of a testator, and, if properly [254]*254charged, from testator’s real estate. But, as already stated, no other assets of testatrix existed except the proceeds of the Norwood mortgage, and that mortgage was specifically disposed of by the seventh Rem of the will. The trust bequest of the Nor-wood mortgage is a specific legacy; this is fully disclosed by the authorities collected in Mecum v. Stoughton, 81 N. J. Eq. 319, and Kearns v. Kearns, 77 N. J. Eq. 453, and the $26,000 representing its proceeds has been identified in a manner that clearly subjects the proceeds to the operation of the bequest. As general legacies must abate before specific legacies, it necessarily follows that the demonstrative legacy of the sixth item of'the will fails. Johnson v. Conover, 54 N. J. Eq. 333; Tichenor v. Tichenor, 41 N. J. Eq. 89.

Doubts touching the seventh item of the will have arisen by reason of the following circumstances:

- At the death of testatrix all the persons named in the seventh item of the will were alive. Robert Riley, one of the reversionary legatees, died October 4th, 1912, intestate and without issue. William H. Alsfelt, one of the life beneficiaries, died August 1st, 1915. Mary Riley, the remaining life beneficiary, and all the reversionary legatees, except Robert Riley, are still alive. Instructions-are now sought as to whether any part of the corpus of the -trust fund became distributable at the death of William H. Alsfelt, and, if so,.what disposition is to be made of it.

At the death of William H. Alsfelt one-half of the corpus of the trust fund became distributable. It has been uniformly so held in this state in construing similar language in all cases in which no other part of the will manifests a contrary intent. Woolston v. Beck, 34 N. J. Eq. 74; Stoutenburgh v. Moore, 37 N. J. Eq. 63; affirmed, 38 N. J. Eq. 281; Collins v. Wardell, 65 N. J. Eq. 366; Merriam v. Dunham, 62 N. J. Eq. 567. In Kellogg v. Burnett, 74 N. J. Eq. 304, the words “after the decease of my said two children” were held to mean after the decease of both.; but that construction was there made necessary because of a reversion to a class which could not be ascertained until the death of. both life tenants. It was, however, there recognized, consistently with the cases above cited, that the direction for equal division of income between the life tenants is inconsistent [255]*255with a Tight in the income in the nature of a joint tenancy. The language ‘‘during their lifetime,” as nsed in the seventh item of the will here in question, must accordingly be understood to mean, during their lifetime respectively. It follows that at the death of William H. Alsfelt one-half of the corpus of the trust fund became distributable.

But for the concluding words of the seventh item of the will, namely, “or the survivors or heirs of them,” little, if any, doubt could be entertained touching the manner of distribution at this time of one-half of the corpus of the trust fund.

The direction contained in the will is to “divide equally between” the persons specifically named. All the persons named are grandchildren of testatrix, except one, who is a great-grandchild; the enumeration of persons includes all of the grandchildren of testatrix and her only great-grandchild; the several grandchildren named are the children of the respective life tenants; the great-grandchild is a child of a deceased granddaughter of testatrix. Where a gift is. to several persons by name, a presumption arises, in the absence of a contrary intent apparent on the face of the will, that the persons named ace to take in their individual, and not in their collective capacity, even though the persons named constitute a class or classes. Dildine v. Dildine, 32 N. J. Eq. 78. It follows that the manner of distribution of the corpus of the trust fund as contemplated by the will is per capita as distinguished from per stirpes.

It also seems clear that in the absence of the concluding words of the bequest, already referred to, the reversionary rights of the several grandchildren and the great-grandchild named in the bequest necessarily would be regarded as vested interests at the death of testatrix, as pointed out in Security Trust Co. v. Lovett, 78 N. J. Eq. 445, since there is to be found in the several reversionary legatees at the death of the testatrix a present right of future enjoyment, and that right of future enjoyment limited only on an event — the death of a life tenant — which was certain io happen, and the several reversionary legatees capable of taking in possession at any time either of the life estates should be spent; it is the uncertainty of the right of enjoyment, and not the uncertainty of actual enjoyment which prevents a right from [256]*256vesting and renders it contingent.

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Bluebook (online)
104 A. 225, 89 N.J. Eq. 252, 4 Stock. 252, 1918 N.J. Ch. LEXIS 47, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-co-v-riley-njch-1918.