Rugely v. Robinson

10 Ala. 702
CourtSupreme Court of Alabama
DecidedJune 15, 1846
StatusPublished
Cited by27 cases

This text of 10 Ala. 702 (Rugely v. Robinson) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rugely v. Robinson, 10 Ala. 702 (Ala. 1846).

Opinions

COLLIER, C. J.-

This cause is not only important to tho parties themselves, but it involves principles of great public interest. It may be regarded as almost res integra in our adjucations, and therefore before undertaking to employ our own reasoning, or to express the conclusions of our judgment, we propose briefly to consider some of the decisions that may have been made in analagous cases elsewhere. The question is, did the defendant in the judgment at law acquire such [717]*717an interest in the property settled by his father’s will, as makes it subject to the payment of his debts.

In Brandon v. Robinson, 18 Ves. Rep. 429, the Lord Chancellor said that property may be given to a man until he shall become bankrupt; but a disposition to a man until he shall become bankrupt, and after his bankruptcy, over, is quite different from an attempt to give to him for his life, with a a proviso that he shall hot sell or alien it. If the condition is expressed so as to amount to a limitation, neither the man nor his assignees can have it beyond the period limited; but while it is his property, it must be subject to the incidents of property ; and therefore to debts : Further, where property is devised to trustees to be sold, and the produce to be paid from time to time into the proper hands of a man, or on his proper order or receipt subscribed with his own hand, that it should not be grantable or assignable by way of anticipation of any unreceived payment; on his decease the principal to be paid to such persons as in course of administratión would become entitled to his personal estate. It toas held, that if a personal receipt was a necessary act, and the cestui que trust would not give it, yet a court of equity would subject such unreceived arrears to the payment of his debts. The court also said, that to prevent such an interest from passing under a commission of bankruptcy against the beneficiary it should be given to some one else. See also, 3 Ves. jr. Rep. 149; 2 Russ. & M. Rep. 197.

So where the testator gave his real and personal estate to trustees in trust to pay an annuity of £600, to his son John for life, “ for his personal maintenance and support during the whole term of his natural life, and shall not, nor shall any part thereof,” &c. “be subject or liable to the debts, engagements, charges, or incumbrances of him, my said sonbut the same shall, from time to time, when due and payable, “ be paid over into the proper hands of him, my said son, only,” and his receipt, and that of no one else, shall be a good ,and sufficient discharge to the trustees. The beneficiary having become a bankrupt, the question was, whether the annuity passed to the assignees by the assignment of the commissioners. The Vice Chancellor decided, that “the testator might if he had thought fit, have made the annuity determinable [718]*718by the bankrujrtcy of his son, but the policy of the law does not permit property to be so limited, that it shall continue in the enjoyment of the bankrupt, notwithstanding his bankruptcy ; consequently, the assignee was adjudged to be entitled to the annuity. [Graves v. Dolphin, 1 Sim. Rep. 66; see also, 2 Iredell’s Eq. Rep. 181.]

In Piercy v. Roberts, 1 Mylne & K. Rep. 4, it appears that property was bequeathed to trustees to be paid to a son in such sums, time, &c. as they might think proper; if the son died before all the residue of the legacy was paid or applied, the residue was provided for: Held, upon the son’s taking the benefit of the insolvent debtors’ act, the assignee of his estate was entitled to the balance unpaid, with interest. But where the testator bequeathed certain stocks to his executors, upon trust, to pay the dividends to his nephew, “ for the sole purposes of the maintenance and support of himself and family,” with an inhibition of “ the power to charge, assign, anticipate or encumber them,” with the declaration that if he should attempt to do so, or the dividends, by bankruptcy, or otherwise, should be assigned &c. to any other person, &c. for any other purpose than the trust, then his interest should cease, and the stock be held for the benefit of his children. [Yarnold v. Morehouse, 1 Russ. & M. Rep. 364.]

In Hallett v. Thompson, et al. 5 Paige’s Rep. 583, the will provided that neither the legacy or interest thereon should be liable to the legatee’s debts, but authorized him to require the payment of the legacy to himself. The chancellor decided that this power was so beneficial, it would pass to his as-signee under the insolvent debtors’ act of New York: Further, that a creditor’s bill would reach and subject the fund to the legatee’s debts. It was admitted that a trust might be created of personal property, and the income applied to the use of the cestui quo trust, and the trust estate placed beyond the reach of creditors. But thus to protect trust property, it must be unalienable during the beneficiaric’s life, or so long as tíre trust continues.

Lewen, in his Treatise upon Trusts and Trustees, says, if a j>erson for whose benefit property is settled upon trust, takes a vested interest, the time and mode of its enjoyment is immaterial. The entire interest may be disposed of by [719]*719him, or may become vested in his assignees on his bankruptcy, or insolvency — pp. 138-9, 140.

A bequest to trustees to be paid to the father, to enable him to maintain a child, it has been adjudged does not confer an interest upon the former, and an assignment for the benefit of his creditors passes no interest to his assigness. [Wetherell v. Wilson, 15 Cond. Eng. Ch. Rep. 81.] So a bequest by a testator to his wife of his residuary personal estate, to the intent that she might dispose of the same to the benefit of herself and their children, in such manner as she might deem most advantageous, does not vest in the wife an absolute interest. Equity will not deprive the widow of the honest exercise of the discretion which the testator has vested in her, or refuse its assistance to inquire into, or to sanction any reasonable arrangement which she may desire to make. [Raikes v. Ward, 1 Hare’s Rep. 445.]

In Hughes v. Pledge and others, 1 Leigh’s Rep. 443, by a marriage settlement, slaves were settled to the use of husband and wife during their joint lives — to the wife if she survive — if she die before the husband, then to whom she shall appoint — in default of such appointment, to the husband for life, and after to the offspring oí her marriage, to the intent that iheproperty shall not be subject to the disposal, debts, contracts, or engagements of the husband: Held, that during the wife’s life, the husband could not dispose of the property, nor was it subject to the payment of his debts. See also, 5 Munf. Rep. 86.

Although it has been said, that the right to alienate a freehold estate cannot be restricted, when there is no gift or disposition over in the e-vent of alienation, yet it has been held, “that in a will any condition or modification may be annexed which does not offend against a rule of law, and it is immaterial by what form of words the intention is executed ; whether by a devise until the devisee shall have encumbered it, or by a proviso by a limitation over upon such an event. Each mode is equally valid and of the same effect.” Further, although the courts look with a jealous eye on restraints upon alienation, yet it is now clear, that he who gives may annex such conditions to the gift. [Wilkinson v. Wilkinson, 3 Swan, R. 522; see also, 1 Swanst. R. 481, note.].

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

Related

Clarke v. Clarke
19 So. 2d 526 (Supreme Court of Alabama, 1944)
Antone v. Snodgrass
14 So. 2d 506 (Supreme Court of Alabama, 1943)
Love v. First Nat. Bank of Birmingham
153 So. 189 (Supreme Court of Alabama, 1934)
Hartwell v. Mobile Towing & Wrecking Co.
102 So. 450 (Supreme Court of Alabama, 1924)
Henderson v. Henderson
97 So. 353 (Supreme Court of Alabama, 1923)
Tatum v. Commercial Bank & Trust Co.
64 So. 561 (Supreme Court of Alabama, 1914)
Terrell v. Reeves
103 Ala. 264 (Supreme Court of Alabama, 1893)
Smith v. Towers
14 A. 497 (Court of Appeals of Maryland, 1888)
Bell v. Watkins
82 Ala. 512 (Supreme Court of Alabama, 1886)
Jones v. Reese
65 Ala. 134 (Supreme Court of Alabama, 1880)
Taylor v. Harwell
65 Ala. 1 (Supreme Court of Alabama, 1880)
Sandlin v. Robbins
62 Ala. 477 (Supreme Court of Alabama, 1878)
Hardenburgh v. Blair
30 N.J. Eq. 42 (New Jersey Court of Chancery, 1878)
Conoly v. Gayle
54 Ala. 269 (Supreme Court of Alabama, 1875)
Du Bose v. Carlisle
51 Ala. 590 (Supreme Court of Alabama, 1874)
Wimberly v. Wimberly
38 Ala. 40 (Supreme Court of Alabama, 1861)
Smith v. Moore
37 Ala. 327 (Supreme Court of Alabama, 1861)
Robertson v. Johnston
36 Ala. 197 (Supreme Court of Alabama, 1860)
Hill v. McRae
27 Ala. 175 (Supreme Court of Alabama, 1855)

Cite This Page — Counsel Stack

Bluebook (online)
10 Ala. 702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rugely-v-robinson-ala-1846.