Seattle First National Bank v. Crosby

254 P.2d 732, 42 Wash. 2d 234, 1953 Wash. LEXIS 437
CourtWashington Supreme Court
DecidedMarch 13, 1953
Docket31929
StatusPublished
Cited by31 cases

This text of 254 P.2d 732 (Seattle First National Bank v. Crosby) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seattle First National Bank v. Crosby, 254 P.2d 732, 42 Wash. 2d 234, 1953 Wash. LEXIS 437 (Wash. 1953).

Opinions

Donworth, J.

In this action, brought under § 4 of the declaratory judgment act, RCW 7.24.040, plaintiff trustee sought a declaration of rights and instructions with regard to certain assignments of principal and income of a trust made by William Shaw Crosby, the beneficiary thereof. From a judgment declaring that the trustee had no duty to honor any of the assignments and no right to honor the assignments of principal, all the defendants, except William Shaw Crosby, have appealed.

The allegations of the complaint (in which the documents material to this controversy were incorporated) were admitted by defendants. Thus, the following factual background is established:

The trust is one established pursuant to the will of Agnes H. Anderson, who died April 5, 1940. By her last will, executed September 24, 1937, Mrs. Anderson left certain property to William Shaw Crosby with the provision that “. . . if [William Shaw Crosby] . . . shall be under the age of Thirty-Five (35) Years when ultimate dis-' tribution of my . . . [Estate] is made, the . . . [property] so bequeathed to . . . [him] shall not be turned over or delivered to ... . [him] until he . . . attains the age of Thirty-Five (35) Years. Until such time [237]*237all such [property] shall, upon ultimate distribution as hereinabove referred to, be delivered to a trustee to be appointed by the executors of this Will by an instrument in writing duly executed by said executors . . . , such trustee to hold the same and to receive all dividends and income therefrom and to pay over such part of such dividends and income as may be necessary or required for the education, support and maintenance of . . . [William Shaw Crosby], and when . . . [he] shall have attained' the age of Thirty-Five (35) Years all such . . . [property] and unused dividends and income shall be by said trustee turned over and delivered to . . . [William Shaw Crosby] . If [William Shaw Crosby] shall die before attaining the age of Thirty-Five (35) Years, the trustee shall distribute and deliver . . . [his] share to . . . [his] heirs at law.” (Italics ours.)

The testatrix provided that her executors might postpone ultimate distribution of her estate for a period of time not to exceed five years from the date of her death. If William Shaw Crosby died without leaving a child or children surviving him, prior to the ultimate distribution of the estate, it was provided in the will that the devise and bequest to him should lapse. If, before the testatrix died, he died survived by issue living at the time of the testatrix’ death and at the time of ultimate distribution, such child or children should take his share.

William Shaw Crosby (to whom we shall refer herein as Crosby) was born June 10, 1918. He was nineteen when the will was executed, twenty-one when the testatrix died, and will become thirty-five years of age, if living, on June 10, 1953.

Pursuant to the directions in the will, the executors of Mrs. Anderson’s estate entered into a trust agreement with respondent on September 13, 1943, and delivered to respondent, as trustee, real and personal property then valued at $129,000, being Crosby’s share of the estate. The pertinent terms of the trust agreement correspond to those of the will and empower the trustee:

“2. To collect and receive the income of the trust property and to pay over to or for the use of said William Shaw Crosby such part of said income (less the reasonable costs [238]*238of administration) as may be necessary or required for his education, support and maintenance.

“3. When and if said William Shaw Crosby attains the age of thirty-five (35) years, to pay over and deliver to him the whole amount of said trust property, and accumulated income (if any), less proper and reasonable costs of administering and closing said trust.

“4. In case said William Shaw Crosby dies before attaining the age of thirty-five (35) years, at his death to pay and deliver the whole of said trust property to his surviving heirs at law.”

Crosby and appellant Rhoda Crosby intermarried at some time subsequent to the death of Mrs. Anderson. A daughter, Márgaret Judith Crosby, was born of this marriage in 1945 and a son, Daniel Wechsler Crosby, in 1947.

Respondent, in determining the amounts necessary for the support and maintenance of Crosby, has taken into consideration not only Crosby’s own needs, but the requirements of his family as well. In February, 1949, respondent was paying to, or for the use of, Crosby income from the trust at the rate of $1,125 per quarter, or $4,500 per annum.

On January 26,1949, Crosby and Rhoda Crosby, who were residents of California, entered into a property settlement agreement, with the stipulation that it might be incorporated. in a decree of divorce obtained by either.

In the settlement agreement, Crosby agreed, among other things, to pay to Rhoda Crosby four hundred dollars per month until distribution of the trust, of which sum two hundred sixty dollars was for the support and maintenance of the two minor children and one hundred forty dollars for the support of Rhoda Crosby. In this agreement, he purported:

(1) To assign to Rhoda Crosby, as security for the $400 monthly payments, all of the payments made by respondent trustee to which he is entitled, not to exceed, however, $4,800 per annum.

(2) To assign to Rhoda Crosby, individually, thirty per cent of his interest in the trust corpus.

(3) To assign to Rhoda Crosby and Leah Rachel Holmes, as trustees for the two minor children under the terms of a [239]*239trust set forth in the property settlement agreement, forty per cent of his interest in the trust corpus.

By this property settlement agreement, each party relinquished his or her right to share in the estate of the other, except as a creditor under the agreement. They also agreed that Rhoda Crosby should have sole custody of the two children, with Crosby “to have reasonable rights of visitation only upon approval of competent medical authority.”

This agreement was incorporated in an interlocutory judgment of divorce obtained by Rhoda Crosby in the superior court of Los Angeles county, California, on March 11, 1949.

Respondent trustee was not a party to the divorce action, nor were any of the trust assets situated in California. Crosby appeared in the divorce action but did not contest it. The record does not reveal whether a final decree of divorce has been entered, although one could be procured at any time subsequent to March 11, 1950.

On February 7, 1949, Crosby executed, “pursuant to the terms of” the property settlement agreement, two separate instruments wherein he assigned (1) his interest in the trust income, not to exceed $4,800 per annum, and thirty per cent of his interest in the total trust property to Rhoda Crosby; and (2) forty per cent of his interest in the total trust property to Rhoda Crosby and Mrs. Holmes, as trustees for the two Crosby children.

The part of the assignment to Rhoda Crosby, relating to trust income, is qualified only as to amount (not to exceed $4,800 per annum); it contains nothing other than its reference to the property settlement agreement which indicates that it is intended only as collateral security for Crosby’s promise to pay her four hundred dollars per month.

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Bluebook (online)
254 P.2d 732, 42 Wash. 2d 234, 1953 Wash. LEXIS 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seattle-first-national-bank-v-crosby-wash-1953.