Perkins v. Burlington Land & Improvement Co.

88 N.W. 648, 112 Wis. 509, 1902 Wisc. LEXIS 20
CourtWisconsin Supreme Court
DecidedJanuary 7, 1902
StatusPublished
Cited by8 cases

This text of 88 N.W. 648 (Perkins v. Burlington Land & Improvement Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perkins v. Burlington Land & Improvement Co., 88 N.W. 648, 112 Wis. 509, 1902 Wisc. LEXIS 20 (Wis. 1902).

Opinion

Cassoday, C. J.

It is contended by counsel for the appellants that, so far as the estate of the plaintiffs was concerned, the trust deed created a mere passive trust, and that the legal estate vested in each of them, respectively, as he came into being, the same as though no trustee had been named, and hence that the case comes directly within the terms of the statute which declares that

[518]*518“Every person who, by virtue of any grant, assignment or devise, now is or hereafter shall be entitled to the actual possession of lands and the receipt of the rents and profits thereof, in law or inf equity, shall be deemed to have a legal estate therein of the same quality and duration and subject to the same conditions as his beneficial interest.” Sec. 2073, Stats. 1898 (the same as sec. 3, ch. 57, R. S. 1849).

But the statute further provides that

“ The last preceding section shall not divest the estate of any trustees in any existing trust where the title of such trustees is not merely norrvmul, but is connected with some power of actual disposition or management in relation to the lands which are the subject of the trust.” Sec. 2074, Stats. 1898 (the same as sec. 4, ch. 57, R. S. 1849).

Passive trusts are abolished by the statute which declares that

“ Every disposition of lands, whether by deed or devise, hereafter made, except as otherwise provided in these statutes, shall be directly to the person in whom the right to the possession and the profits shall be intended to be vested and not to any other, to the use of or in trust for such person, and if made to one or more persons in trust for or to the use of another no estate or interest, legal or equitable, shall vest in the trustee.” Sec. 2075, Stats. 1898 (the same as sec. 5, ch. 57, R. S. 1849).

Under these statutes, this court has held that

“ A conveyance of land to one person in trust for and to the use and benefit of another, without any further expression of the nature and purposes of the trust, vests the absolute legal title in the cestui que trust named.” Sullivan v. Bruhling, 66 Wis. 472.

To the same effect, Hannig v. Mueller, 82 Wis. 235, 243; Tyson v. Tyson, 96 Wis. 59; Ruth v. Oberbrunner, 40 Wis. 238.

But we are clearly of the opinion that the trust deed to Dr. Dyer did not create, nor attempt to create, a mere passive trust, within the meaning of the statutes cited and the decisions of this court. White v. Fitzgerald, 19 Wis. 480; Goodrich v. Milwaukee, 24 Wis. 422; Smith v. Ford, 48 Wis. 133; Webber v. Webber, 108 Wis. 626. As indicated in the [519]*519statement of facts, Dr. Dyer was to have and retain the possession of the lands during the whole continuance of the trust. He was to receive the rents and profits and the proceeds of any sales made by him, and to use the same in the payment of debts, and then he was “ to permit ” the widow to receive the rents and profits to her use for life; she to pay therefrom to Frederick S., yearly, such sum as she might deem proper. In case the widow died before Frederick S., then Dr. Dyer was to pay to him from such rents and profits so much as he might deem proper until he should become twenty-five years of age, and then he was to receive the whole rents and profits to his own use during his life. In case Frederick S. survived the widow, and should have issue, then Dr. Dyer was to convey such lands to such issue, for their use and the use of their heirs, forever; but in case he died without issue, then such lands were to be disposed of as therein stated. By the express terms of the deed, Dr. Dyer had full rigjit, power, and authority to sell and convey any and every part ” of the premises in ease of “ necessity arising out of the situation or wants ” of the widow or Frederick S., or at any time upon the joint wish ” of the two, “ with the consent of the trustee ”; and in that event Dr. Dyer was to invest the proceeds of such sale “in such safe manner as the trustee ” deemed “ proper for the use of the parties in interest.” And in case Origen Perkins survived his wife or his son, then the trustee was to convey the premises to such person or persons, and in such manner, as Origen should direct by his will or otherwise.

Thus it appears that Dr. Dyer, as such trustee, was expressly given the “ power of actual disposition,” and also the power of actual management ” and control of the lands which were “ the subjéct of the trust,” and hence it was in a double sense an active trust, as defined in one of the sections of the statute quoted. Such deed of trust manifestly created an express trust,” within the meaning of the stat[520]*520ute (subd. 1-3, 5, sec. 2081, Stats. 1898; the same as sec. 11, ch. 57, R. S. 1849). White v. Fitzgerald, supra; Goodrich v. Milwaukee, supra; Smith v. Ford, supra; Webber v. Webber, supra. Another section, of the statute expressly provides that

“ Every express trust, valid as such in its creation, except as herein otherwise provided, shall vest the whole estate in the trustees, subject only to the execution of the trust; and the person for whose benefit the trust was created shall take no estate or interest in the lands, but may enforce the performance of the trust.” Sec. 2086, Stats. 1898 (the same as sec. 16, ch. 57, R. S. 1849.)

The next section relates to the power of the person creating the trust over the subject of the trust “ in the event of the failure or determination of the trust,” and his power to grant or devise “such lands subject to the execution of the trust.” Sec. 2087, Stats. 1898 (the same as sec. 17, ch. 57, R. S. 1849). But here it was only in case the person so creating the’trust survived his wife or his son that he reserved to himself any right to direct Dr. “ Dyer or his heirs ” “ to convey the premises to such person or persons and in such manner as” he (Origen Perkins) should “direct by his will or otherwise.” Unless he survived his wife or his son, he thereby deprived himself of all control over the property. In case he did so survive, then not only Dr. Dyer, but in case of his death then “ his heirs,” were to be subject to such direction. This clearly contemplates the possibility of the title to the lands passing by descent from Dr. Dyer to “ his heirs.” In the event that Origen Perkins should survive both his wife and his son, and his son should leave issue, then neither Dr. Dyer nor his heirs could convey as directed by the trust deed until it should be ascertained whether Origen had or would give other direction “ by his will or otherwise; ” and that might not be known until the death of Origen.

Such features of the trust deed indicate the character of [521]*521the trust, and they are not weakened by the fact that Origen Perkins did not survive his wife or his son, but died three years after the creation of the trust. So the widow died about two years prior to the commencement of the action against Dr. Dyer. That suit was commenced and terminated in a judgment five years prior to the birth of any of the plaintiffs. Thus it appears'that for seven years no living person had any right, title, or interest in any of the lands in question, either legal or equitable, except Dr. Dyer and Frederick S. Perkins. During that period the suit was commenced and terminated.

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Cite This Page — Counsel Stack

Bluebook (online)
88 N.W. 648, 112 Wis. 509, 1902 Wisc. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perkins-v-burlington-land-improvement-co-wis-1902.