Succession of Stewart

287 So. 2d 609, 1973 La. App. LEXIS 5883
CourtLouisiana Court of Appeal
DecidedNovember 13, 1973
DocketNo. 12127
StatusPublished
Cited by2 cases

This text of 287 So. 2d 609 (Succession of Stewart) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Succession of Stewart, 287 So. 2d 609, 1973 La. App. LEXIS 5883 (La. Ct. App. 1973).

Opinion

AYRES, Judge.

This is a summary proceeding by rule in- ■ stituted by the Minden Bank & Trust Company, hereinafter referred to as “the bank,” as co-trustee of the Edmond L. Stewart Trust, also herein referred to as “the trust,” under authority of LSA-R.S. 9:2233, to secure instructions from the Twenty-Sixth Judicial District Court in and for Webster Parish, Louisiana, as to the proper interpretation to be placed upon certain provisions and as to the general principles to be followed in the administration of the trust which was created by the will of Edmond L. Stewart and previously probated by that court.

Subsequent to filing of the rule, the validity of the trust itself was put at issue. There was also engrafted upon the proceeding, over objections by the bank, a collateral proceeding to rescind certain conveyances from the universal legatee of the widow of Edmond L. Stewart, who would have succeeded to the property left in trust had he died intestate, to Dan W. Stewart, III, who claims to be the sole beneficiary of the trust.

Edmond L. Stewart, a long-time resident of Webster Parish, Louisiana, died on January 11, 1956. His will, dated August 17, 1955, was presented for probate before the lower court by his widow, Mrs. Jim Brown Stewart, and his executor, Dan W. Stewart, Jr. The “NINTH” article of the will created a trust in which the bank and Dan W. Stewart, Jr., were named co-trustees. The provisions of the trust are set forth in the aforesaid article which we quote:

“All of the remainder of my estate, I give and bequeath unto Minden Bank & Trust Company, Minden, Louisiana, and Dan W. Stewart, Jr., of Minden, Louisiana, in trust, with seizin and without bond, under the following terms and conditions :
“(a) This trust shall extend for the maximum time permitted under the laws of the State of Louisiana.
“(b) Said Trustees shall hold, manage, handle, control, protect and care for the trust estate in accordance with their best judgment, and so far as practicable shall retain the real estate intact, and shall preserve the timber lands by good forestry practices such as selective cutting and reseeding.
“(c) The Trustees shall have the power in their discretion, on such terms and conditions, and for such consideration as they may deem fit, to make any and all contracts involving all or any part of said property, including real rights, and servitudes applying to said real estate, including the right to sell, alienate, or otherwise dispose of said real estate, including the right to execute mineral leases, mineral and royalty sales; to sign division orders, enter unitization or working agreements, and with full power to lease or purchase, alienate, or sell any nature of property whatsoever, whether real, personal, or mixed, without restrictions and without Court approval.
“(d) Said Trustees are further authorized to sue and be sued, to receive and receipt for any and all monies due said trust estate.
“(e) Said Trustees shall have full power to invest and reinvest in unrestricted property at their discretion and to settle and adjust any claims against, or in favor, of this trust.
[611]*611“(í) The Trustees shall have all powers granted under the Trust Estates Act and the powers enumerated herein are not to be construed as a limitation upon the powers of said Trustees.
“(g) The Trustees shall keep complete and accurate accounts showing the complete status of the Trust Estate at all times.
“(h) The Trustees shall use any part of the income of said Trust, if necessary, for the health, comfort and well being of my wife, Mrs. Jim Brown Stewart, during her life time.
“(i) The Trustees shall be authorized to make charitable bequests out of said income in their discretion.
“(j) I have many nieces and nephews, both of the whole and the half blood, as well as their descendants, and said Trustees, at their discretion, shall be authorized to make loans or donations to them.
“(k) The Trustees shall have the power to accumulate the income until DAN W. STEWART, III, the beneficiary, is of the age of 65 years, at which time this trust shall terminate, taking into account all their powers to deplete the principal by making loans and donations as previously specified, it being my intention that the bulk of my estate be distributed among my relatives before the termination of this trust.
“(1) This Trust shall be known as the ‘EDMOND .L. STEWART TRUST’, and my intention in creating it is to provide for my family, subject to the discretion of said Trustees, as I am confident the Trustees can increase said estate.”

The provisions most relevant to the issues at hand are found in Paragraphs (a), (j), (k), and (1).

In due course and pursuant to the petition therefor by the widow and the executor, a judgment dated June 14, 1956, was rendered sending the bank and Dan W. Stewart, Jr., into possession of the property remaining after satisfaction of debts and special legatees as “Trustees for the ‘Edmond L. Stewart Trust’.” The bank and Dan W. Stewart, Jr., have served as trustees since the date of the aforesaid judgment, a period of approximately 17 years. Neither has claimed, as a trustee, to be a beneficiary under the will.

During meetings conducted by the bank’s Trust Committee, of which Dan W. Stewart, Jr., was a member, in December of 1967 and April of 1968, a decision was reached that, in the course of the administration of the trust, a substantial distribution should be made to the decedent’s nieces and nephews and their descendants. To that end, the trust officer of the bank was instructed to obtain information necessary to determine the identity and location of. the persons to whom the distribution should be made. Dan W. Stewart, Jr., testified that during the course of these meetings he initially raised the question whether, as a practical matter, all of the parties entitled to share in the distribution could be located, but he otherwise consented to and approved the minutes of the meeting authorizing the action. Thereafter, all of the parties except one were located and, in July of 1968, a disbursement of $50,000, by means of checks signed by Dan W. Stewart, Jr., was made to them.

Soon after the distribution was made, Dan W. Stewart, III, communicated to the bank, apparently for the first time, insofar as it appears from the record, his belief that he was entitled to receive the entire property of the trust as its sole beneficiary, and that the $50,000 distribution was improper. Subsequently he unsuccessfully attempted to secure the resignation of the bank as co-trustee of the trust. He thereafer related to various officers of the bank that he had reached the conclusion some question existed as to the validity of the trust.

Responsively, the bank filed the rule in this proceeding requesting that the court [612]*612confirm the construction of the trust in substantially the manner in which the bank and Dan W. Stewart, Jr., as co-trustees, had previously administered it and declare that the collateral heirs of Edmond L. Stewart were intended to be the beneficiaries of the trust. All of the nieces and nephews of Edmond L. Stewart or their descendants wer.e duly cited as parties to the proceeding as were Dan W.

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Related

Succession of Stewart
290 So. 2d 897 (Supreme Court of Louisiana, 1974)

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Bluebook (online)
287 So. 2d 609, 1973 La. App. LEXIS 5883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/succession-of-stewart-lactapp-1973.