Wendell v. AmeriTrust Co.

630 N.E.2d 368, 69 Ohio St. 3d 74
CourtOhio Supreme Court
DecidedApril 20, 1994
DocketNo. 92-1980
StatusPublished
Cited by37 cases

This text of 630 N.E.2d 368 (Wendell v. AmeriTrust Co.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wendell v. AmeriTrust Co., 630 N.E.2d 368, 69 Ohio St. 3d 74 (Ohio 1994).

Opinion

Moyer, C.J.

The issue presented is whether the residuary provisions of the testator’s will are governed by the law as it existed at the time of the execution of the will or whether a subsequent judicial ruling of unconstitutionality should render G.C. 10504-5 void ab initio.

At the time of the execution of the will, G.C. 10504-5 provided: “If a testator dies leaving issue of his body, or an adopted child, living, or the lineal descendants of either, and the will of such testator gives, devises or bequeaths the estate of such testator, or any part thereof, to a benevolent, religious, educational or charitable purpose, * * * such will as to such gift, devise or bequest, shall be invalid unless it was executed according to law, at least one year prior to the death of the testator.” 114 Ohio Laws 346.

In 1953, G.C. 10504-5 was renumbered R.C. 2107.06, with minor amendments. In 1965, the General Assembly substantially amended R.C. 2107.06. 131 Ohio Laws 617. The amended statute provided that charitable bequests executed more than six months before a testator’s death were valid, and if executed within six months of the testator’s death, those bequests were invalid only to the extent that they exceeded twenty-five percent of the testator’s net probate estate. The General Assembly repealed R.C. 2107.06 effective August 1, 1985. 141 Ohio Laws, Part I, 1232. In 1986, this court declared former R.C. 2107.06 to be unconstitutional in Shriners’ Hosp. for Crippled Children v. Hester (1986), 23 Ohio St.3d 198, 23 OBR 359, 492 N.E.2d 153. As such, G.C. 10504-5 remained in effect and was not amended between the execution of Harry Wendell’s will and his death three months later. Thus, with regard to G.C. 10504-5, it is immaterial whether we consider the will as speaking from the date of execution or the date of the testator’s death.

[76]*76We have consistently held that a court’s overriding concern when interpreting a testamentary document must be to ascertain and give effect to the testator’s intent if it be legally possible. Townsend’s Exrs. v. Townsend (1874), 25 Ohio St. 477, paragraph one of the syllabus. To aid in determining intent, the document must be read in view of the law as it existed at the time it was executed with the presumption that the testator was knowledgeable of the law. Cent. Trust Co. of N. Ohio, N.A. v. Smith (1990), 50 Ohio St.3d 133, 553 N.E.2d 265; Flynn v. Bredbeck (1946), 147 Ohio St. 49, 33 O.O. 243, 68 N.E.2d 75, paragraph one of the syllabus. We have held that, when determining whether a settlor intended adopted children to be included in a designated class of beneficiaries created by an inter vivos trust, the law in effect at the time the trust was created should be applied to effectuate the intent of the settlor. Ohio Citizens Bank v. Mills (1989), 45 Ohio St.3d 153, 543 N.E.2d 1206, paragraph two of the syllabus. More specifically, after declaring Ohio’s mortmain statute unconstitutional in Shriners’ Hosp. for Crippled Children v. Hester, at syllabus, we expressly gave our decision prospective application only. Generally, it has been the policy of this court to apply the law in effect at the time of the execution of the will when interpreting testamentary documents since that law typically frames the intent of the testator.

Nine years following the execution of Wendell’s will, we reaffirmed that gifts to charities made within one year of the testator’s death were void under G.C. 10504-5. Kirkbride v. Hickok (1951), 155 Ohio St. 293, 44 O.O. 297, 98 N.E.2d 815. Therefore, on the day the will was executed and on the day of Wendell’s death, the mortmain statute was a viable rule of law. We must presume that the testator’s intent was formed with the knowledge that his charitable gifts might lapse. Further evidence of intent comes from the testator’s inclusion of two classes of residuary legatees. It is reasonable to assume that the testator, fearing his charitable gifts might be rendered void, included the second residuary class in part to protect against intestate succession. This distribution scheme was subsequently recognized by this court in Commerce Natl. Bank of Toledo v. Browning (1952), 158 Ohio St. 54, 48 O.O. 28, 107 N.E.2d 120. Finally, we observe that the specific sum that was bequeathed for the benefit of plaintiffs, $70,000, was very near the original corpus amount of approximately $84,000. The testator, shortly before his death, had witnessed the most economically depressed period of our nation’s history. The 1930s represented an era where investment gains were typically at a minimum. While Wendell may have hoped this to be a one-time phenomenon, his recent experience had been that his trust might not grow at a rate much greater than that necessary to meet the needs of his wife and son and permit a $70,000 distribution to his grandchildren. The amounts involved at the time of the execution of the will strongly evidence an intent that the bulk of his estate should remain in his family with a much lesser amount being distributed to the charities.

[77]*77In light of the foregoing, we presume that Wendell was aware of the potential effect of the mortmain statute and that it was his intention to bequeath the bulk of his estate to his family. Having determined the overriding issue of intent, we now consider whether the law will permit satisfaction of this intent.

In Peerless Elec. Co. v. Bowers (1955), 164 Ohio St. 209, 57 O.O. 411, 129 N.E.2d 467, we held that, generally, a decision of this court overruling a previous decision is to be applied retrospectively with an exception for contractual or vested rights that have arisen under the previous decision. This reasoning applies with similar force when the court’s decision strikes down a statute as unconstitutional. Ohio’s mortmain statute was repealed by the General Assembly, and declared unconstitutional by judicial decision. Shriners’ Hosp. for Crippled Children v. Hester, supra. The issue created is whether the plaintiffs’ rights to distribution vested prior to the decision declaring the mortmain statute unconstitutional, hence satisfying the exception stated in Peerless.

In paragraph two of the syllabus of Ohio Natl. Bank of Columbus v. Boone (1942), 139 Ohio St. 361, 22 O.O. 414, 40 N.E.2d 149, we held that:

“The law favors the vesting of estates at the earliest possible moment, and a remainder after a life estate vests in the remainderman at the death of the testator, in the absence of a clearly expressed intention to postpone the vesting to some future time.”

Generally, if a present bequest is made and only distribution is delayed until some date in the future, the beneficiary’s interest will vest at the death of the testator subject to possible additions to the class. Cent. Trust Co. of N. Ohio, N.A. v. Smith, supra, 50 Ohio St.3d at 138, 553 N.E.2d at 271; Wiley v. Bricker (1900), 21 Ohio C.C. 109, 11 Ohio C.D. 429.

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

Related

Stephan v. Wacaster
2025 Ohio 565 (Ohio Court of Appeals, 2025)
In re Estate of Gaskill
2019 Ohio 4936 (Ohio Court of Appeals, 2019)
Keybank Natl. Assn. v. Firestone
2019 Ohio 2910 (Ohio Court of Appeals, 2019)
McKettrick v. McKettrick
2015 Ohio 366 (Ohio Court of Appeals, 2015)
In re Henderson
2013 Ohio 1380 (Ohio Court of Appeals, 2013)
State v. Smith, 06ca0070-M (6-11-2007)
2007 Ohio 2841 (Ohio Court of Appeals, 2007)
State v. Hildreth, Unpublished Decision (9-29-2006)
2006 Ohio 5058 (Ohio Court of Appeals, 2006)
Peters v. Allison
814 N.E.2d 568 (Ohio Court of Appeals, 2004)
Jackson v. City of Columbus
804 N.E.2d 1016 (Ohio Court of Appeals, 2004)
Clark v. Ohio Bureau of Workers' Compensation
2002 Ohio 3522 (Ohio Court of Claims, 2002)
Dunkel v. Hilyard
766 N.E.2d 603 (Ohio Court of Appeals, 2001)
Polen v. Baker
2001 Ohio 1286 (Ohio Supreme Court, 2001)
State v. Sullivan
2001 Ohio 6 (Ohio Supreme Court, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
630 N.E.2d 368, 69 Ohio St. 3d 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wendell-v-ameritrust-co-ohio-1994.