Warren's Estate

22 Pa. D. & C. 416, 1935 Pa. Dist. & Cnty. Dec. LEXIS 268
CourtPennsylvania Orphans' Court, Philadelphia County
DecidedJanuary 25, 1935
Docketno. 229
StatusPublished

This text of 22 Pa. D. & C. 416 (Warren's Estate) is published on Counsel Stack Legal Research, covering Pennsylvania Orphans' Court, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warren's Estate, 22 Pa. D. & C. 416, 1935 Pa. Dist. & Cnty. Dec. LEXIS 268 (Pa. Super. Ct. 1935).

Opinion

Stearne, J.,

The exceptions raise the question whether this appointment by a donee of a general power of appointment is void in whole or part as contravening the rule against perpetuities. The rule, which for centuries has had much learning and effort expended in its application, was one of the methods adopted by the judiciary, in the interest of public policy, to prohibit the undue limitation and prolongation of estates. Mr. Gray in his learned treatise “The Rule Against Perpetuities” (3d ed.), says (p. 2) that the rule is a mode “adopted by the Common Law for forwarding the circulation of property which it is its policy to promote”. Without attempting to trace the develop[417]*417ment of the rule it will suffice to say that the limit, under the rule, for the creation of executory interests to commence is “within the period of a life or lives in being, and twenty-one years, allowing for the period of gestation”: Smith’s Appeal, 88 Pa. 492, 496. It should be noted that “It matters not how many lives there may be so that the candles are all burning at the same time, for the life of the longest liver is but a single life”: Smith’s Appeal, supra.

In testing any given case under the rule there is a distinction made between the effect of testamentary or inter vivos provisions made by the testator or settlor himself, and those made by a donee of a power of appointment under the terms of the trust. The distinction while narrow, is, nevertheless, extremely important. In cases of trusts created by a testator or settlor, the validity of the disposition is governed by possible events, not necessarily by actual events as they may have happened to materialize. For instance, if an interest could arise beyond the limit fixed by the rule, the disposition is void irrespective of the fact that such a person was in fact born within the limitation of the rule. The test is whether, under the provisions of the trust, it is possible for a person to take an interest held to be too remote under the rule. If so, the limitation is void: 1 Jarman on Wills (7th ed.), 266, 288 et seq.; Lilley’s Estate, 272 Pa. 143; Ledwith et al. v. Hurst et al., Execs., 284 Pa. 94; Scott’s Estate, 301 Pa. 509; Friday’s Estate, 313 Pa. 328.

Contradistinguished from the case of the creation of a future interest in the original will or deed is when such interest is created by the donee of a power. While the remoteness of the appointed estate is still measured from the time of the creation of the power: Lawrence’s Estate, 136 Pa. 354; it is the fact and not the possibility which rules. If the appointment as actually made does not violate the rule, such appointment is not rendered void merely because the appointee might have appointed in a manner too remote. It is well settled that the exercise of a power of appointment is not rendered void because of the fact that within its terms an estate might be created which possibly would be too remote. The determination of the validity of the appointment in such cases depends upon the facts as they actually exist at the time the appointment is made and not possibilities: Lawrence’s Estate, 136 Pa. 354; Boyd’s Estate (No. 1), 199 Pa. 487; McClellan’s Estate, 221 Pa. 261; 48 C. J. 978, §63, 979, §65, note 74.

To illustrate the distinction in the operation of the rules: Suppose A bequeaths his estate to B for life, and after B’s death to B’s children for the life of the survivor with provision that, upon the death of any of B’s children so possessing a life estate, their children should take the deceased parent’s share until the decease of the surviving child, with remainder over to the issue of all children. Obviously, the substitutionary provisions for the disposition of the income until the death of the surviving child would be void as too remote. It would be possible that one of B’s children might die over 21 years after B’s death, and then let in a new estate. Therefore, the whole provision, as to the substitutionary gift of income would be void, as would the remainder. On the other hand, if A gives his estate to B for life, with a general power of appointment, and B gives the estate to her children, who are all living at the death of A, for life of the survivor, and under exactly the same provisions as above stated, then the whole disposition is valid. The naming of these children, so living, is but “lighting another candle” which is burning during the lives of A and B. It is still necessary to look to the original will or deed, and to read into it the terms of the appointment. However, where it appears that the appointment in fact names persons in being in the lifetime of the donor, the [418]*418disposition is valid and is not rendered void because it might have been possible to appoint otherwise.

The only case in Pennsylvania which appears contrary to the above rules is Smith’s Appeal, 88 Pa. 492. It is true that this case in terms has never been overruled. Part oí the decision, however, was expressly overruled. The remainder has been criticised by eminent text book writers, doubted by the learned justice who wrote the opinion, and has not been followed by Judge Pen-rose in this court, affirmed in a later decision of the Supreme Court. In this situation we are of opinion that Smith’s Appeal is not now a binding authority upon the principle upon which it was originally decided. A discussion of the facts and decision, in Smith’s Appeal, and its subsequent history, may be helpful in illuminating the situation as- it exists in the present case. In Smith’s Appeal the testator devised the residue of his estate to trustees to pay a share thereof inter alia to a daughter for life and upon her death to pay the principal to such persons and upon such uses as the daughter might appoint. The daughter appointed to her children for life with a general power of appointment, and in default to their heirs. A most important element, which is particularly emphasized herein, is that all the children (donees) of the daughter were living at the time of the death of testator. The lower court (the Orphans’ Court of Philadelphia) upheld the validity of the trust for the benefit of the children of the daughter for life: 36 L. I. 226. The Supreme Court, in an opinion by Mr. Justice Paxson reversed this decision and declared the entire appointment void as against the Rule against Perpetuities: 88 Pa. 492. Obviously, that part of the appointment which passed the estate to the children of the life tenant (daughter) for life ought to have been upheld because the life estates were created and commenced to operate immediately upon the ending of an existing life, which life was in existence at the time of the death of the original testator. The Supreme Court in Lawrence’s Estate, 136 Pa. 354, 355, expressly overruled this part of Smith’s Appeal, and directly decided that “When the donee of a power to devise, who was in being at the creation of the power, appoints by will, in trust for life-tenants to take at his death, with remainder over, such appointment for life will be good, whether the appointees for life were born before or after the creation of the power, and even if the estate appointed in remainder be too remote”. This of course corrected the original error and since Lawrence’s Estate this has been the uniform decision of the Supreme Court. But upon the main point, to wit, the validity of the remainders, Smith’s Appeal was not expressly overruled. Mr. Justice Paxson expressly ruled that the exercise of the power of appointment must be written into the will of the donor, and all of its provisions must be considered as if contained in the will of the donor. The learned justice then makes the test of remoteness as of the date of the death of the donor.

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Bluebook (online)
22 Pa. D. & C. 416, 1935 Pa. Dist. & Cnty. Dec. LEXIS 268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warrens-estate-paorphctphilad-1935.