Taylor v. Phillips

95 S.E. 289, 147 Ga. 761, 1918 Ga. LEXIS 140
CourtSupreme Court of Georgia
DecidedMarch 12, 1918
DocketNo. 731
StatusPublished
Cited by12 cases

This text of 95 S.E. 289 (Taylor v. Phillips) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Phillips, 95 S.E. 289, 147 Ga. 761, 1918 Ga. LEXIS 140 (Ga. 1918).

Opinion

Atkinson, J.

Hpon the controlling question the case is quite similar to Garland v. Smith, 164 Mo. 1 (64 S. W. 188). In that [763]*763case certain land was conveyed by James Smith to a trustee for the use of the grantor’s wife, Mrs. Persis Smith, for life, "'and the said Persis shall have power to sell, mortgage, incumber, lease, or otherwise dispose of the same to such person or persons and for such uses and purposes as she may at any time, by writing by her signed, direct and appoint,” and the trustee was directed to execute all writings necessary to carry into effect this po-wer when directed by her. If not so disposed of, the trustee was directed to convey to .others at her death. The wife executed a warranty deed of the land to the defendant, which recited a consideration of $10, but which was shown to have been without consideration; and also devised the same land to him in her will. It was held that the defendant acquired no title to tire remainder under either the deed or the will. In the course of the opinion it was said: “What estate did Mrs. Persis Smith acquire by the trust deed of James Smith of March 13, 1865, and what were the purposes, and the nature, extent, and scope of the power of appointment conferred upon her by said deed? Did the conveyance by deed of gift, of June 26, 1888, constitute a valid execution of her power of appointment? Could that power of appointment be executed by last will? As to the estates created by the deed of James Smith, we conceive there can be no doubt. By it a legal title in fee simple was con1 veyed to Edward A. Eilley, the trustee therein named. An equitable life-estate to Mrs. Persis Smith, his wife, with a power of appointment superadded, and a contingent remainder to the issue of Mrs. Persis Smith living at her death, and in default of such issue a contingent remainder to the heirs of Charles Garland. The power of disposal annexed to the life-estate of Mrs. Smith did not enlarge her life-estate into an equitable fee simple. Rubey v. Barnett, 12 Mo. 3 [49 Am. D. 112]; Gregory v. Cowgill, 19 Mo. 415; Lewis v. Pitman, 101 Mo. 281 [14 S. W. 52]. Having ascertained the nature and extent of the estates created, we are brought to an examination of the nature and purposes of the power of appointment. It is well to keep in view, first, the terms of the power as expressed by the grantor; and, secondly, the circumstances attending the execution of the deed. After the grant of the estate for life for her sole and separate use and benefit, the deed proceeds: cAnd the said Persis Smith shall have power to sell, mortgage, incumber, lease, or otherwise dispose of the same to such person or [764]*764persons and for such uses and purposes as she may at any time, by writing by her signed, direct and appoint/ and the trustee is directed to execute the writings necessary to carry into effect this power whenever directed by her. Any person who is competent to dispose of an estate of his own may execute a power over land. While not necessary to go into the learning on the subject of the powers to any great length, it is well enough to advert to some of the general principles laid down in the cases and treatises on the subject. Thus, Washburn on Beal Property (5th ed.), vol. 2, p. 691, says: ‘There is, besides, a subdivision of the class of powers which are held by a donee who has some estate in the land, into, powers appendant and powers in gross. Powers appendant are such as the donee is authorized to execute out of the estate limited to him, and depend for their validity upon the estate which is in him. He is thereby able to create an estate which will attach on an interest actually vested in him. The illustration given by Mr. Sugden is of a life-estate limited to a man with a power to grant leases in possession, which must in every case have its operation out of his estate during his life. Powers in gross ^ are such as one who has an estate in land has to create such estate only as will not attach on the interest limited to him, or to take effect out of his own interest. The illustration of Hale, C. B., of such a power,' is where a tenant for life has a power to create an estate which is not to begin until his own ends. It is a power in gross, because the estate for life has no concern in it/ Applying these principles to the power conferred upon Mrs. Persis Smith, it was appendant, so far as her right to lease, convey,- or incumber her life-estate; but in so far as it authorized her to appoint the fee, to begin after her life-estate, it was a power in gross. Says the same learned author (vol. 2* p. 707) : ‘When the mode of executing a power comes to be considered, it will be found that, in order to the execution being valid, the law is exceedingly strict in requiring a precise compliance with the direction of the donor as expressed in his deed or will / and particularly is this true as to a power to cut out remaindermen. . . A fortiori it is not a power to give away the property conveyed. But, argues the learned counsel for defendant, a general power to appoint in writing may be executed by deed or will; and that the words of the deed conferred a general power, and are not restricted to a conveyance of the property for value. [765]*765In our own view, this is a crucial test in this case. In what manner and for what purposes was this power conferred upon Mrs. Smith ? Did the grantor intend that his wife should give away this estate which he had set apart first to support and maintain her during her life, and after her death for the benefit of the heirs of Charles Garland? By a process of inclusion and exclusion, we reach the conclusion that he intended to exclude George Smith, the defendant, because he expressly limits the first remainder to the issue, the heirs of the body of his wife, and, upon failure of such living heirs at her death, then to the heirs of Charles Garland. It is also obvious that he had in view a provision for the benefit of his wife, and, lest misfortune should overtake her, he gave her the power to sell, mortgage, incumber, or otherwise dispose of the home to raise funds for her support. Counsel for defendant states the purpose of James Smith thus: ‘The reasons which, according to Mrs. James Smith, induced him to execute this deed of trust, were that he was actively engaged in business, was a director in the Boatmen’s Savings Institution, and had become a surety for his friends on many bonds and other obligations, and he wished to settle the homestead property in trust for his wife while he was^ yet in a solvent condition.’ While this is a fair statement of the evidence as far as it goes, Mr. Filley adds that he said ‘he wished to. have the property held in trust for Mrs. Smith and her heirs.’ We think, that, to properly construe the power of appointment, not only the words of the deed must be looked to, but the circumstances surrounding the grantor, and the fact that a remainder had been created for the heirs of Charles Garland. When this is done, it seems to us that the construction which most harmonizes with the intention of the grantor, and at the same time subserves and preserves the rights of all the objects of his bounty, is that the power of appointment was appendant to Mrs. Smith’s life-estate, thereby enabling her, in the event of his insolvency, to sell the property or mortgage or incumber it for her support; but it was not his intention to permit her to give it away, and thus possibly leave her homeless in her old age, nor to permit her to give it away to the destruction of the remainder he had granted to the heirs of Charles Garland. It is suggested, however, that Mrs. Smith might have, under this power, sold the land for a valuable consideration, and given the proceeds to defendant George.

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

Related

LeCraw v. LeCraw
401 S.E.2d 697 (Supreme Court of Georgia, 1991)
Williams v. Bullock
200 S.E.2d 753 (Supreme Court of Georgia, 1973)
City of Washington v. Ellsworth
116 S.E.2d 167 (Supreme Court of North Carolina, 1960)
Harrison v. Harrison
105 S.E.2d 214 (Supreme Court of Georgia, 1958)
Tague v. Tague
85 N.W.2d 22 (Supreme Court of Iowa, 1957)
Bienvenu v. First National Bank of Atlanta
17 S.E.2d 257 (Supreme Court of Georgia, 1941)
Comer v. Citizens & Southern National Bank
185 S.E. 77 (Supreme Court of Georgia, 1935)
Lindsey v. Robinson
180 S.E. 106 (Supreme Court of Georgia, 1935)
Warner Hardware Co. v. Shimon
242 N.W. 718 (Supreme Court of Minnesota, 1932)
Chenault's Guardian v. Metropolitan Life Ins.
53 S.W.2d 720 (Court of Appeals of Kentucky (pre-1976), 1932)
State Highway Board v. Price
162 S.E. 283 (Supreme Court of Georgia, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
95 S.E. 289, 147 Ga. 761, 1918 Ga. LEXIS 140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-phillips-ga-1918.