Schapira v. Connecticut Bank & Trust Co.

528 A.2d 367, 204 Conn. 450, 1987 Conn. LEXIS 931
CourtSupreme Court of Connecticut
DecidedJuly 21, 1987
Docket13102
StatusPublished
Cited by8 cases

This text of 528 A.2d 367 (Schapira v. Connecticut Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schapira v. Connecticut Bank & Trust Co., 528 A.2d 367, 204 Conn. 450, 1987 Conn. LEXIS 931 (Colo. 1987).

Opinion

Peters, C. J.

The sole issue on this appeal is whether an adopted child is entitled to a remainder interest distributable in accordance with the terms of an irrevocable inter vivos trust created in 1919. The plaintiff, [452]*452Ilse Beer Schapira, brought an action for a declaratory judgment to determine whether she, as an adopted child, could take as “issue then living” under a trust agreement providing for distribution upon the death of a life beneficiary.1 The defendants are the Connecticut Bank and Trust Company, which serves as the trustee of the trust, and Milton L. Jacobson, who, as conservator of the estate of Eva Virginia Smith, claims a competing right to the entire remainder interest. After a trial to the court, judgment was rendered for both defendants. The plaintiff appealed to the Appellate Court. This court transferred the appeal to itself. We find no error.

The facts are undisputed. On May 9,1919, Leonard O. Smith, as settlor, created an inter vivos trust (the trust) and named the predecessor of the defendant Connecticut Bank and Trust Company as trustee. The corpus of the trust consisted of 471 shares of capital stock in several major oil companies. The trust directed the trustee to divide the corpus into three equal parts and to distribute the income equally among three beneficiaries: the settlor’s wife, Eva Crowell Smith, and two daughters, Eloise Crowell Smith (known after marriage as Eloise C. S. Beer), and Eva Virginia Smith. Pursuant to the third article of the trust, after the death of the settlor’s wife in 1943, her one third interest was divided equally between the two daughters.2

[453]*453Article four of the trust established the rights of Eloise Crowell Smith, the settlor’s daughter, and her issue.3 The trust directed the payment of income to Eloise during her life. Upon her death, her share of the principal was to “be divided, per stirpes, among her issue then living” unless she was survived by a child or children under the age of twenty-one. In the event that Eloise died without issue and was not survived by her mother, her part of the principal was to be paid to the settlor’s other daughter, Eva Virginia Smith.

Finally, article six of the trust provided that if both daughters died without issue and neither was survived by their mother, the assets were to be distributed “to the next of kin of the said Donor” as defined by state law in effect at the time of distribution.4 This provision does not govern the distribution of the assets because Eloise is survived by her sister Eva.

[454]*454The plaintiff was the niece of Sanel Beer, whom Eloise married in 1942. The plaintiff and Sanel Beer had immigrated together to the United States from Austria in 1938. Sanel and Eloise C. S. Beer formally adopted the plaintiff in 1956; she was then thirty-six years old. On September 5,1979, Eloise died, leaving the plaintiff as her only child.

It is apparent from these undisputed facts that the settlor of the trust, who died in 1925, had no knowledge of the plaintiff’s adoption. The plaintiff contends that he nonetheless intended to include her within the class described as “issue then living” at the time of the death of Eloise. The defendant Jacobson, as conservator for Eva, argues, to the contrary, that Eloise died without issue and that Eva is therefore entitled to the one half interest created initially for the benefit of Eloise and her “issue then living.”

The trial court rendered judgment for the defendants. The court determined that the term “issue” primarily signifies descendants of the body, and that in the absence of a contrary intent of the settlor, adopted children are presumed to be excluded. Applying the so-called “stranger to the adoption” doctrine, the court ruled that because the settlor was not himself the adopting parent, and the adoption occurred after the settlor’s death, the plaintiff had failed to prove that the settlor specifically meant to share his bounty with adopted grandchildren. Additionally, the court concluded that the law in effect at the time of distribution of the trust in 1979 did not warrant a judgment in favor of the plaintiff. Finally, the trial court held that the trust’s direction, in article six, to distribute the corpus to statutory [455]*455heirs in the event that both daughters died without issue did not illuminate the meaning to be ascribed to “issue” under article four.

On appeal, the plaintiff claims that the trial court erred in: (1) excluding her from the meaning of “issue” in article four of the trust; (2) failing to apply the law in effect at the death of the life beneficiary to define the meaning of “issue” in article four; and (3) relying on the “stranger to the adoption” doctrine to presume that the settlor meant to exclude an adopted grandchild from the meaning of “issue” in article four. We find no error.

I

The plaintiffs first claim is that the trial court misconstrued the intent of the settlor by holding that an adopted grandchild was not within the meaning of “issue” in article four. We disagree.

In construing the word “issue,” we have often noted that, in its primary meaning, “issue” connotes lineal relationship by blood. Connecticut Bank & Trust Co. v. Hills, 157 Conn. 375, 378, 254 A.2d 453 (1969); Bankers Trust Co. v. Pearson, 140 Conn. 332, 356, 99 A.2d 224 (1953); Trowbridge v. Trowbridge, 127 Conn. 469, 472, 17 A.2d 517 (1941). Significantly, the common law presumed that an adopted child is not within the intended bounty of a settlor who, as a nonadopting parent, is a stranger to the adoption. Mooney v. Tolles, 111 Conn. 1, 9, 149 A. 515 (1930); Middletown Trust Co. v. Gaffey, 96 Conn. 61, 67-68, 112 A. 689 (1921).

These common law presumptions do not invariably govern interpretation of the terms of a will. Because the touchstone of trust interpretation is the intent of the settlor, the presumptions in favor of ancestral blood give way when an intent to include adoptees “definitely [456]*456appears from a reading of the instrument in light of the circumstances surrounding the settlor at the time of execution.” Connecticut Bank & Trust Co. v. Bovey, 162 Conn. 201, 206, 292 A.2d 899 (1972); see also Connecticut Bank & Trust Co. v. Lyman, 148 Conn. 273, 279, 170 A.2d 130 (1961). We have held on several occasions that language ordinarily indicating a preference for ancestral blood can be shown to include adoptees. Parker v. Mullen, 158 Conn. 1, 4-5, 255 A.2d 851 (1969); Mooney v. Tolles, supra, 10-11; Ansonia National Bank v. Kunkel, 105 Conn. 744, 753-54, 136 A. 588 (1927).

The plaintiff argues that an intent to include adoptees can be discerned in this case in article six of the trust agreement.

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Bluebook (online)
528 A.2d 367, 204 Conn. 450, 1987 Conn. LEXIS 931, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schapira-v-connecticut-bank-trust-co-conn-1987.