Weinstein v. MacKey

408 So. 2d 849
CourtDistrict Court of Appeal of Florida
DecidedJanuary 26, 1982
Docket80-2257, 80-2348
StatusPublished
Cited by1 cases

This text of 408 So. 2d 849 (Weinstein v. MacKey) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weinstein v. MacKey, 408 So. 2d 849 (Fla. Ct. App. 1982).

Opinion

408 So.2d 849 (1982)

Matthew WEINSTEIN, As Guardian Ad Litem of the Unborn Children of David L. Mackey, Etc., and Security Trust Company and Eric C. Van Enter, As Trustees of Trust under Modified Trust Agreement of Ella C. Levis, Appellants,
v.
Leslie L. MACKEY, a Minor, Jennifer L. Mackey, a Minor, David L. Mackey, Jr., a Minor, and Kirk B. Mackey, a Minor, Appellees.

Nos. 80-2257, 80-2348.

District Court of Appeal of Florida, Third District.

January 26, 1982.

*850 Matt Weinstein, South Miami, Hyzer, Knight & Lund and Eric C. Van Enter and George L. Knight, Miami, for appellants.

Giles, Hedrick & Robinson and Eugene B. Cawood, Orlando, for appellees.

Before HENDRY, SCHWARTZ and DANIEL S. PEARSON, JJ.

SCHWARTZ, Judge.

In 1973, Ella Levis executed a modified trust agreement which in part provided that after her death, the net income from a specified portion of the corpus, which consisted entirely of personalty, was to be paid "for the duration of their natural lives" to her nephew Dr. David L. Mackey and his wife, Shirley R. Mackey. Upon the death of the survivor of the Mackeys, the principal of their share was to be distributed to Dr. Mackey's children "including children born after my death, with a predeceased child's issue taking by representation."[1]*851 Miss Levis died on April 25, 1979 at the age of ninety-three. Dr. Mackey was then forty-two years of age and had four children, born between 1965 and 1970. In January, 1980, both Dr. and Mrs. Mackey executed unconditional disclaimers of their right to the income. Shortly thereafter, the trustees brought the present action for a construction of the effect of the disclaimers and instructions as to the proper disposition of the income and principal in question. Over the contrary contentions of the trustees and a guardian ad litem appointed to represent Dr. Mackey's unborn children, the trial judge ruled that the disclaimers accelerated the remainder interest so that it was immediately distributable to the four living children, to the exclusion of any afterborn ones. We affirm that conclusion.

The issue before us concerns the doctrine of acceleration, which

refers to the hastening of the owner of a future interest towards a status of present possession or enjoyment by reason of the failure of the preceding estate. 2 Simes & Smith, Law of Future Interests (2 Ed.), 263, What is Acceleration, Section 791. The doctrine of acceleration is generally used when the temporary interest, preceding the remainder, fails to come into existence, or, as in the case sub judice, coming into existence, terminates in some manner for which the testator did not provide... . The rationale given for this rule in 2 Restatement of Property 962, Comment a, Section 231 (1936), is that acceleration is in accordance with what is normally to be inferred as the intent of the `conveyor'... namely that as each successive interest sought to be created by him ends or becomes impossible, the next interest in order should move up. However, the application of the doctrine of acceleration must be in furtherance of the intention of the testator, and never in contravention thereof.

Ohio National Bank of Columbus v. Adair, 54 Ohio St.2d 26, 374 N.E.2d 415, 417 (1978). While these general principles have become well-established, Jackson v. Exchange National Bank of Tampa, 152 Fla. 528, 12 So.2d 450 (1943); Murphy v. Murphy, 125 Fla. 855, 170 So. 856 (1936), the question of their applicability to a transfer[2] of the kind involved here is one of initial impression in this state.[3]

The gift of the principal of the trust to the children of Dr. Mackey is a vested remainder in those who have already been born, with their share subject to proportionate diminishment by the birth of additional children. As to this type of interest, which is described as a remainder vested subject to open, L. Simes & A. Smith, The Law of Future Interests § 799 (2d ed. 1956); 2A R. Powell, The Law of Real Property § 309[5][c] (rev.ed. P. Rohan 1977), the generally accepted rule of construction is that a disclaimer of the prior interest indeed accelerates the remainder interest of the existing class members, and, most significantly, "closes the class" as of that time, thus eliminating any right of the unborn. The principle is stated as follows in Restatement of Property § 231, Comment i (1936).

*852 [W]hen the renounced interest is the only hindrance to the succeeding interest becoming forthwith a present interest and the succeeding interest is limited as a gift to a class in such manner that the class can increase its membership only during the stipulated period of the renounced interest, then such increase in membership is to be construed as having been intended to occur only during the actual continuance of the attempted prior interest. The renunciation of such attempted prior interest prevents the period during which such increase was intended to be possible from ever existing. The accelerated interest of each of the persons who is a member of the class at the time when the creating conveyance becomes operative is not subject to being diminished in size by such class thereafter and during the stipulated period of the renounced interest opening and admitting new members. This rule of construction is required by the intent normally to be inferred from a limitation of the type described.

Illustration 3 to this section is indistinguishable from this case:

3. A, owning Blackacre in fee simple absolute, effectively devises Blackacre `to B for life, remainder to the children of C and their heirs.' C has a child D. A dies. B renounces the provision made for him by A's will. More than one year later and prior to B's death C has a child E. D has an estate in fee simple absolute in Blackacre.

A clear majority of the cases accordingly hold that a remainder to a class, as here, of "children," "grandchildren," or the like, is both accelerated and closed upon the termination of the preceding life estate. Tomb v. Bardo, 153 Kan. 766, 114 P.2d 320 (1941); Allen v. Hannum, 15 Kan. 470 (1875); Davis v. Hilliard, 129 Md. 348, 99 A. 420 (1916); Sherman v. Baker, 20 R.I. 446, 40 A. 11 (1898); Re Davies, [1957] 4 All.E.R. 52; but cf., Trenton Banking Co. v. Hawley, 7 N.J. Super. 301, 70 A.2d 896 (1950); contra, Neill v. Bach, 231 N.C. 391, 57 S.E.2d 385 (1950); Yeaton v. Roberts, 28 N.H. 459 (1854).[4] This rule controls our decision here.

*853 It is true, as in every instance in which the acceleration doctrine is arguably applicable, see, Murphy v. Murphy, supra; In re Estate of Rentz, 152 So.2d 480 (Fla.3d DCA 1963), cert. denied, 156 So.2d 859 (Fla. 1963), that the ultimate issue is the settlor's wishes and that the acceleration-closed-class result will not obtain if the terms of the operative instrument manifest a contrary intent. Restatement of Property, supra, § 231 at pp. 970-71; 2A R. Powell, supra, § 310[2].

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