Warner v. Rice

8 A. 84, 66 Md. 436, 1887 Md. LEXIS 41
CourtCourt of Appeals of Maryland
DecidedJanuary 5, 1887
StatusPublished
Cited by34 cases

This text of 8 A. 84 (Warner v. Rice) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warner v. Rice, 8 A. 84, 66 Md. 436, 1887 Md. LEXIS 41 (Md. 1887).

Opinion

Alvey, C. J.,

delivered the opinion of the Court.

This case presents the question, whether the interest or estate of George Warner, the debtor, in certain property embraced in a deed of trust made by himself and wife, and others, to Joseph A. Sprigg, is liable to attachment or execution for his debts. The deed bears date the 18th of Sept., 1877, and the judgment upon which the attachment issued was rendered several years after the deed was made and recorded.

It appears that the late George Warner, Jr., who died in 1877, willed his.property to trustees to be divided by them among his three children in certain proportions; and after the division, those children joined in the deed of trust to Sprigg, just mentioned, in which certain trusts are declared by the grantors. The property conveyed was both real and personal. The will and deed of trust were both before this Court for construction, in the case of Warner vs. Sprigg, 62 Md., 14. It was there held, that, under the will, the children took an absolute legal estate in the property devised and bequeathed; and that the deed of trust was valid, and vested in the trustee the legal estate in the property conveyed, subject to the trusts declared.

[439]*439The declaration of trust in the deed, in relation to the property of George Warner conveyed, or that portion of it sought to he made liable to the attachment in this case, is made in these terms: “In trust for the use and benefit of said George Warner and his immediate family, free from liability for any of his debts, contracts or engagements; and when, if so by said trustee found requisite, by him deemed proper, to apply the uses, rents, income and profits to the support and maintenance of said George and his said family, during his, said George’s life; and after his decease the same to go as he by last will may have directed; or in case of his decease intestate, the same to go according to law, under the existing statutory provisions ©f the law of Maryland.” And in the concluding part of the deed, there is a general declaration of intention, made by all the parties thereto, in the following terms: “It being the intent of all said grantors, parties hereto, to convey and assign to said Sprigg, to be held by him and those who may •succeed him in said trust relation, in trust, for said grantors respectively, as to their several estate and interest, the legal title, they respectively controlling the investments, and changes of investments, from time to time, and in the manner hereinbefore specified. * * * The said 'Cestuis que trust respectively being entitled and reserving the right to collect, receive and have, eaclr for her or himself, the rents, issues and profits of her or his respective ■share, conformably with the trust hereby created.”

George Warner has a wife, who joined with him in the deed of trust, and the record shows that he has two infant •children; but whether he has other children or not, the record does not inform us. All the garnishees, in whose hands the attachment was laid, except the trustee, appear to be lease-holders, and it is the annual ground rents payable by them, that are sought to be applied, by means of the attachment, to the satisfaction of the judgment against George Warner.

[440]*440It is certainly a well settled doctrine in the law of property, that a beneficial legal estate in fee or for life, cannot be conveyed or devised to a person with a provision that it shall not be alienated, or that it shall not be subject to the debts, of the legal owner. And, as a general principle, it is equally true, that equitable estates cannot be effectually created with a proviso against alienation or that they shall not be liable to the debts of the cestui quetrust, except in the case of trusts created for the protection and benefit of married women. It is wholly against the policy of the law to allow property, whether legal or equitable, to be fettered by restraints upon alienation, and generally whenever property is subject to alienation by the-owner it is subject to his debts.

But though such be the general rule upon the subject, property may be so devised or conveyed for the special benefit of a party that it cannot be alienated by him, and creditors and assignees in bankruptcy cannot seize and appropriate it to the payment of debts. As, for instance, a devise of the income of property, to cease on the insolvency or bankruptcy of the devisee, is good, and such limitation is effectual. Brandon vs. Robinson, 18 Ves., 429; Rockford vs. Hackmen, 9 Hare, 475; Nichols, Assignee vs. Eaton, 91 U. S., 722. But such principle has no application to the case before us.

Here, George Warner was legal as well as equitable owner of his share of the estate of his father, which was. conveyed by the deed of trust; and he is himself the author of the trust created in his own favor under which he .is now seeking to shield himself against his creditors. The object of the deed of trust was not to destroy or divest himself of his right of property, but simply to place the legal estate therein in a trustee as, perhaps, a guard against improvident management. But the equitable estate remains in George Warner during his life, with full power of disposition by will, and, in default of will, [441]*441the property devolves on his heirs and representatives at his death, when the trust will terminate. It is only during his life that the rents, profits and income from the property are directed to he applied to the support of himself and his family, when and as the trustee may deem proper. Eull and complete control is retained in the cestuis que trust over the investments, and change of investments; and they declare, moreover, that they are entitled, and reserve the right, to collect, receive and have, each for her or himself, the rents, issues and profits of his or her share, conformably with the trust declared. As we have seen, there is no limitation over or cesser of George'Warner’s equitable life estate, or his interest in the rents and profits of the property, upon seizure of the same by creditors; nor is there any other direction in regard to the rents, issues and profits of the property, than that they are to he applied to the maintenance of George Warner and his family during his life.

It is urged that there is a discretion in the trustee as to whether he will or not pay over the rents and profits to George Warner for the support of himself and family. But if he does not so apply the rents and profits, what will he do with them ? It is very clear the trustee will have no power to retain them as his own property, nor is he directed or authorised to accumulate them for any other purpose, iduppose, at the death of George Warner, the trustee should be in arrear with the rents and profits, to whom would they belong, and to whom would the trustee he required to account ? It would seem to he very clear that, in such event, the rents and profits would belong to the estate of George Warner, and that the trustee would have to account to his executor or administrator for such arrearage. The trustee, clearly, has no power, by the exercise of any discretion; to divert the rents and profits from the estate, or from the purpose designated by the deed. The discretion given the trustee, if the terms of [442]

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

Related

Tony Arnel Massenburg
D. Maryland, 2019
Lassman v. Tosi (In Re Tosi)
383 B.R. 1 (D. Massachusetts, 2008)
Brent v. State of Maryland Central Collection Unit
537 A.2d 227 (Court of Appeals of Maryland, 1988)
Estate of German v. United States
7 Cl. Ct. 641 (Court of Claims, 1985)
Outwin v. Commissioner
76 T.C. 153 (U.S. Tax Court, 1981)
Watterson v. Edgerly
388 A.2d 934 (Court of Special Appeals of Maryland, 1978)
Paolozzi v. Commissioner
23 T.C. 182 (U.S. Tax Court, 1954)
Ware v. Gulda
117 N.E.2d 137 (Massachusetts Supreme Judicial Court, 1954)
Sines v. Shipes
63 A.2d 748 (Court of Appeals of Maryland, 1949)
Estate of Camm
172 P.2d 547 (California Court of Appeal, 1946)
Greenwich Trust Co. v. Tyson
27 A.2d 166 (Supreme Court of Connecticut, 1942)
Herzog v. Commissioner of Internal Revenue
116 F.2d 591 (Second Circuit, 1941)
In re Shapiro
34 F. Supp. 737 (D. Maryland, 1940)
Northwest Real Estate Co. v. Serio
144 A. 245 (Court of Appeals of Maryland, 1929)
Manders v. Mercantile Trust & Deposit Co.
128 A. 145 (Court of Appeals of Maryland, 1925)
In re Dudley's Estate
3 F.2d 832 (D. Maryland, 1925)
Brown v. Hobbs
104 A. 283 (Court of Appeals of Maryland, 1918)
Gischell v. Ballman
101 A. 698 (Court of Appeals of Maryland, 1917)
Houghton v. Tiffany
82 A. 831 (Court of Appeals of Maryland, 1911)

Cite This Page — Counsel Stack

Bluebook (online)
8 A. 84, 66 Md. 436, 1887 Md. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warner-v-rice-md-1887.