Security Trust & Safe Deposit Co. v. Lockwood

118 A. 225, 13 Del. Ch. 274, 1922 Del. Ch. LEXIS 41
CourtCourt of Chancery of Delaware
DecidedSeptember 8, 1922
StatusPublished
Cited by5 cases

This text of 118 A. 225 (Security Trust & Safe Deposit Co. v. Lockwood) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Security Trust & Safe Deposit Co. v. Lockwood, 118 A. 225, 13 Del. Ch. 274, 1922 Del. Ch. LEXIS 41 (Del. Ct. App. 1922).

Opinion

The Chancellor.

This cause necessitates the construction of the will of Sarah G. N. Merritt and also the will of her husband, Thomas S. Merritt. Each will creates a trust fund. The complainant is the trustee for each fund. Though the two trusts are entirely separate and distinct, the trustee nevertheless joins them in one bill and in the same proceeding seeks a construction of both of them. The parties in interest are the same with respect to each trust. No objection has been made on the ground of multifariousness because, I suppose, it is conceived that the question involved under each will can be conviently disposed of in one proceeding. It can be, and I accordingly proceed to consider first the will of Sarah G. N. Merritt, and, having done so, second to consider the will of Thomas S. Merritt.

The will of Sarah G. N. Merritt (dated February 7, 1871, and proved October 4, 1874), insofar as its provisions are pertinent to the present inquiry, gave and devised to the trustee therein named, his heirs and assigns, all the real and personal estate of the testatrix wherever situate, in trust for her three daughters for [276]*276and during the terms of their natural lives. After providing for certain expenses and disbursements by the trustee out of the income, the will provided as follows:

“ * * * The residue of the income, rents and profits to be paid over to my said daughters, to each one-third part thereof, and immediately after the death of any one or more of my said daughters to grant and convey the deceased one’s share (being one-third) to the surviving child or children of said deceased one, that is to say upon the death of Mary N. to grant and convey one-third part of said real estate to her surviving child or children; upon the death of Martha B., to grant and convey one-third part of said real estate to the surviving child or children of said Martha B.; upon the death of Hannah S. to grant and convey one-third part of said real estate to her surviving child or children. My will further is- that if one or more of my said daughters should die without leaving issue that the survivors or survivor shall take the deceased ■ one’s portion subject to any and all changes I have madejn favor of jny said husband or other purposes.”

The will provides further that the real estate might be sold. If such sale were made, then the trustee, was directed as follows:

“ * * * To invest the net proceeds of the sale of said real estate in such stocks, bonds or securities as he shall think best for the benefit of my said daughters and to collect and receive the income and profits of such investments and pay the same to my said daughters or their legal representatives as the same may come into his hands and is also authorized to sell said stocks, collect said and other securities so invested, and reinvest the same as he may from time to time may deem most advantageous to my said daughters.”

The real estate was sold and the trustee segregated the proceeds into three equal funds, holding each of said funds in the trust for the three daughters respectively for life with remainder over as the will provides. It is with respect to' the fund held in trust for the daughter, Hannah S., that the trustee asks the instruction of this court. I may say that all sides agree that the language of the will which governs the ultimate disposition of this fund is that which defines the trusts with respect to the property qua real estate (the first quoted paragraph of the will, supra.)

Hannah S. Lockwood was married and had two children, John J. Lockwood and Schee M. Lockwood, born respectively on July 2, 1874, and April 18, 1870. She died leaving to survive her, her son John J. Lockwood and four grandchildren, the children of Schee M. Lockwood, who predeceased her intestate, leaving a [277]*277widow, Nellie C. Lockwood. Her son John J. Lockwood contends that the entire corpus of the one-third held in trust for his mother for life, should be paid to him; and the children and widow of Schee M. Lockwood, deceased, contend that one-half thereof should be paid to John J. Lockwood and the other one-half thereof should be paid to the children of Schee M. Lockwood.

With respect to the share of Hannah S. Lockwood, the trust created a life interest in her, with a contingent remainder over to the surviving child or children, or in default of her issue to her surviving sister or sisters. Her son Schee M. Lockwood did not survive her. His interest, contingent on his surviving his mother, was, therefore, never vested in him. That being so, his widow cannot establish any right to share in the fund. Indeed, I do not understand her to make any claim to any such right. His four children, however, are differently situated, for they claim, not as distributees of their father’s estate, but as beneficiaries under their great grandmother’s (Mrs. Merritt’s) will.

Have they any right to the fund under that will? The language is:

“Upon the death of Hannah S. grant and convey one-third part of said real estate to her surviving child or children.”

If the testatrix had said nothing more, then it would seem clear that only a child or children surviving Hannah S. could take. Schee M. Lockwood’s estate would not be entitled because he had not survived his mother, nor would his four children be entitled because they would not be embraced within the class of children of Hannah S. This is conceded by the solicitpr for the four children of Schee M. Lockwood. But the testatrix did not stop with the language above quoted. She proceeded to provide:

“My will further is that if one or more of my said daughters should die without issue, that the survivor or survivors shall take the deceased one’s portion subject to any and all charges I have made in favor of my said husband or other purposes.”

Whereas in the clause preceding this one the contingency on which Hannah's sisters' share was to go over in remainder was Hannah’s death leaving no child surviving her, the contigency specified in this clause is the death of Hannah “without issue.” [278]*278■Hence it is argued that the testatrix disclosed an intention to use the words “child or children” as synonymous with “issue,” and that the four children of Schee M. Lockwood, being issue of Hannah S., are entitled to share per stirpes with John J. Lockwood in the'fund in question. My judgment is that this contention is correct.

' Solicitors for John J. Lockwood contend that, instead of permitting the phrase “without issue” to enlarge the natural import bf the words “child or children,” the reverse should be the case, viz., that “child or children” should be permitted to narrow the meaning of the word “issue.” They cite authority to the-effect that the word “issue” is to be ordinarily understood, when used in wills, to mean “children” and not to denote lineal descendants. The authorities cited, however, do not sustain this contention. Lord Eldon’s decision in Sibley v. Perry, 7 Ves Jr. 522, 32 Eng. Reprint; 211; is cited in this connection: But on examination it will appear that Lord Eldon in that case said:

“Upon all the cases this word [issue] prima facie will take in descendants beyond immediate issue.”

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Bluebook (online)
118 A. 225, 13 Del. Ch. 274, 1922 Del. Ch. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-trust-safe-deposit-co-v-lockwood-delch-1922.