Price v. Austin National Bank

522 S.W.2d 725, 1975 Tex. App. LEXIS 2668
CourtCourt of Appeals of Texas
DecidedApril 30, 1975
Docket12195
StatusPublished
Cited by7 cases

This text of 522 S.W.2d 725 (Price v. Austin National Bank) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Price v. Austin National Bank, 522 S.W.2d 725, 1975 Tex. App. LEXIS 2668 (Tex. Ct. App. 1975).

Opinion

O’QUINN, Justice.

The Austin National Bank, in its capacity as independent executor of the estate of Lillian Price Swann, deceased, filed this suit in December of 1971 for declaratory judgment construing the will of decedent with respect to specified testamentary trusts and the Bank’s powers and duties under the will in acting as executor. Seventeen persons named in the will, two banking institutions acting as trustees under the will, and the attorney general of Texas were named defendants, the attorney general being joined under authority of Article 4412a, Vernon’s Ann.Tex.Civ.Sts., by reason of charitable trusts affected by the suit.

The parties ultimately joined issue on construction of paragraph Vl.g. of the will and distribution to be made under subpara-graphs (1) through (8) under that provision. The appellants, who are four individual beneficiaries of trusts under the will, the attorney general, and trustees of certain charitable trusts having remainder interests, contended in the trial court and contend on appeal that the correct amount to be distributed under paragraph Vl.g. to the four testamentary trusts is $203,478.85. The appellees, who are residuary legatees under paragraph Vl.g., contend that the amount to be distributed to the four testamentary trusts is $146,428.85, or $57,050.00 less than the figure appellants contend is correct.

The trial court’s judgment, entered in April of 1974, held " . . . that the sum of $146,428.85 is the correct amount to be distributed by [the executor] under the terms of Paragraph VIg of such Will to the four testamentary trusts created in Paragraph VIg(l.) through VIg(4.) thereof.”

The individual appellants 1 and the trustees make their contentions on appeal under six points of error, and the attorney general brings six points of error. Appellees answer under two reply points. We will *727 overrule all points urged by appellants and will affirm the judgment of the trial court.

The will of Lillian Price Swann, dated June 11, 1969, which is the subject of this lawsuit, and a codicil dated June 30, 1969, were admitted to probate in Travis County early in December of 1969, following the death of testatrix in Austin on November 15, 1969. During her lifetime Mrs. Swann created two inter vivos trusts, the first instrument dated June 6, 1968, styled The Evans Swann Memorial Trust, referred to as Trust No. 1, and the second instrument dated January 3, 1969, styled The Evans Swann Memorial Trust No. 2, referred to as Trust No. 2.

In her will Mrs. Swann recognized that all her property was acquired during her marriage to Evans S. Swann who predeceased the testatrix. Apparently in part to aid her executor in meeting estate and inheritance tax requirements, Mrs. Swann directed the executor to divide her estate into two equal portions by value, and referred to the first part as her husband’s portion and to the second part as her portion.

Paragraph VI of the will, under examination and construction in this appeal, provided in pertinent part the following:

“VI

“My portion of the estate, computed as set forth above, shall be distributed as follows:

[Subparagraphs a. through f. make six cash bequests to named persons in sums ranging from $500 to $10,000, followed by subparagraph g. next set out]

“g. Such sum of money which, when added to the value as of the date of my death of the corpus of The Evans Swann Memorial Trust No. 2, created by instrument dated January 3, 1969 (less the payments totaling $25,000 provided for in paragraphs 3a and 3d), will equal $310,000.00, to The Austin National Bank, Trustee, to be held, administered and distributed as hereinafter set forth in this subparagraph g:

“(1) 7%ioths, of such sum shall be set aside in a separate trust for the benefit of my sister, Janie Price, of Laredo, Texas, for the term of her natural life and the income only from such trust paid to her or for her benefit in convenient installments not less frequently than monthly.

“(2) 7%ioths of such sum shall be set aside in a separate trust for the benefit of my sister, Johnnie Price (Mrs. Alfred) Murphy, of Laredo, Texas, for the term of her natural life and the income only from such trust paid to her or for her benefit in convenient installments not less frequently than monthly.

“(3) 10%ioths of such sum shall be set aside in a separate trust for the benefit of my nephew, Wayne Price Brock, of Fort Worth, Texas, for the term of his natural life and the income only from such trust paid to him or for his benefit in convenient installments not less frequently than quarterly.

“(4) 6%ioths of such sum shall be set aside in a separate trust for the benefit of Harriette Graham, daughter of Mr. and Mrs. W. Murray Graham, Austin, Texas, for the term of her natural life and the income only from such trust paid to her or for her benefit in convenient installments not less frequently than monthly.

“(5) Upon the death of the first to die of my sisters named in Subparagraphs (1) and (2) above, the trust previously held for the benefit of such deceased sister shall pass eighty percent (80%) to the John C. and Leona Numsen Price Scholarship Trust set forth in Subparagraph 3g(l) of the trust indenture with The Austin National Bank dated January 3, 1969, and twenty percent (20%) to the Evans Swann Memorial Trust created by instrument dated June 6, 1968, naming The Austin National Bank, Trustee, (seven-tenths (%oths) of such twenty percent to be used for med *728 ical scholarships as set forth in Paragraph 6 of such trust instrument, and three-tenths (%oths) of such twenty percent to be used for scholarships administered by the Downtown Austin Rotary Club as set forth in Paragraph 5 of such trust).

“(6) Upon the death of the second to die of my sisters named in Subparagraphs (1) and (2) above, the trust previously held for the benefit of such second deceased sister shall pass to the Citizens First National Bank of Tyler, Texas, as trustee, to be used for the purposes of the Smith County medical scholarship trust set forth in Paragraph 3g(2) of the trust indenture with The Austin National Bank, Trustee, dated January 3, 1969.

“(7) Upon the death of my said nephew, the trust previously held for his benefit shall pass one-fourth (½⅛) to the Price Scholarship Trust set forth in Subpara-graph 3g(l) of the trust indenture with The Austin National Bank dated January 3, 1969, fifty percent (50%) to The Evans Swann Memorial Trust created by instrument dated June 6, 1968 (one-half (½) of such fifty percent to be used as provided in Paragraph 5 of such trust instrument, and the other one-half (½) to be used as provided in Paragraph 6 of such trust instrument), and one-fourth (¼⅛) to the Citizens First National Bank of Tyler, Texas, as trustee, to be used for the purposes of the Smith County medical scholarship trust set forth in Subparagraph 3g(2) of the trust indenture with The Austin National Bank, Trustee, dated January 3, 1969.

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Bluebook (online)
522 S.W.2d 725, 1975 Tex. App. LEXIS 2668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-austin-national-bank-texapp-1975.