White v. National Bank & Trust Co.

186 S.E.2d 21, 212 Va. 568, 1972 Va. LEXIS 210
CourtSupreme Court of Virginia
DecidedJanuary 17, 1972
DocketRecord 7676
StatusPublished
Cited by4 cases

This text of 186 S.E.2d 21 (White v. National Bank & Trust Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White v. National Bank & Trust Co., 186 S.E.2d 21, 212 Va. 568, 1972 Va. LEXIS 210 (Va. 1972).

Opinion

Gordon, J.,

delivered the opinion of the court.

We have before us the question whether the will of Anne White Bailey, deceased, violates the rule against perpetuities. The question can be framed by describing the relevant provisions of the will relat *569 ing to one beneficiary, the testatrix’s grandnephew John Henry White. Nevertheless, the relevant provisions relating to all beneficiaries are copied in the Appendix to this opinion.

The will directs that the testatrix’s residuary estate be held as a trust estate, the trust to terminate upon the expiration of twenty-five years from the date of the testatrix’s death. See Appendix, Articles III and VI.

Pending termination, the will authorizes the Trustee to use income and, in its discretion, principal for John Henry White’s “school and college education”. “The Trustee shall have wide discretionary powers in providing income for the foregoing purposes . . . [I]nsofar as the education of my said grand-nephews and grand-niece [John Henry White and the other grandnephews and the grandniece provided for in the will] are concerned, supplemental educational funds from the trust shall be provided to or for them respectively only so long as such person is making normal progress in completing the educational program approved by the parent and the Trustee for such person, or by the Trustee alone if the parent may not be living when educational decisions must be made.” See Appendix, Article V.

Upon termination of the trust, that is, on the twenty-fifth anniversary of the testatrix’s death, the will directs the Trustee to distribute a share of the trust estate, principal and accumulated income, to “John Henry White, should he then b’e living, otherwise to his heirs and distributees, per stirpes.” See Appendix, Article VII.

After the will was probated, the Executor and Trustee sought by this suit the advice and guidance of the court whether the will violated the rule against perpetuities. The trial court held that the alternative gift to heirs and distributees, should John Henry White be not living upon termination of the trust, violated the rule against perpetuities and was therefore void. But the court upheld the benefits provided under the will for John Henry White during his lifetime and his remainder interest should he be living upon termination of the trust.

The appellants appeal from the court’s final decree insofar as it fails to hold the entire trust estate void. The appellees assign cross-error to the final decre’e insofar as it holds the contingent gifts to heirs and distributees void. 1

*570 Before oral argument, we raised with counsel the question whether the Court should follow the precedent of Gasque, Ex’r v. Sitterding, 208 Va. 206, 213, 156 S.E.2d 576, 581 (1967), and withhold decision on the validity of the remainder interests under the Bailey will until the remainders fall in. At oral argument, counsel urged that we decide the entire case at this time. They distinguished Gasque principally on the ground that if, as contended by the appellants in this case, all remainder interests are void under the rule against perpetuities, the remainder interests vested in the testatrix’s heirs and distributees at the time of her death. So, counsel assert, we are now called upon to decide not only the identity of beneficiaries who will be entitled to receive distribution of an estate at a future time, as in Gasque, but also whether interests in an estate vested in the testatrix’s heirs and distributees at her death.

In this connection, another question presents itself, whether we can now make an adjudication that will bind the persons, perhaps now unborn, who may qualify as remaindermen under the terms of the will when the remainders fall in. Since the doctrine of virtual representation by parties has been adhered to in this State, we conclude that this question can be answered, yes. See Faulkner v. Davis, 59 Va. (18 Gratt.) 694, 728-39 (1868); Baylor’s lessee v. Dejarnette, 54 Va. (13 Gratt.) 152, 166-71 (1856); J. A. Lile and E. B. Meade, Lile’s Equity Pleading and Practice §§ 78, 81, 83 and 84 (3d Ed. 1952). So, agreeing that counsel’s distinction of Gasque has validity, we will now decide the case. 2

The will does not provide benefits for John Henry White as a memb’er of a class. Rather, it provides for him as a named individual. And since John Henry White was living at the testatrix’s death, any gift to him is a gift to a “life in being” within the contemplation of the rule against perpetuities.

Any interest in the trust estate that vests in John Henry White before termination of the trust must necessarily vest in him, if at all, during the life of a “life in being”. This is so because sums are distributable to John Henry White before termination of the trust only so long as he may be living. 3

*571 And any remainder interest in the trust estate must vest in John Henry White, if at all, during the life of a “life in being”. This is so because a remainder interest vests in John Henry White under the terms of the will only if he is living when the trust terminates.

Under settled Virginia law for at least 170 years, an interest under a will is valid under the rule against perpetuities provided the interest must vest, if at all, not later than twenty-one years and ten months after the death of a life in being at the testator’s death. See Burruss v. Baldwin, 199 Va. 833, 887, 103 S.E.2d 249, 252, (1958); Rose v. Rose, 191 Va. 171, 179-80, 60 S.E.2d 45, 48 (1950); Pleasants v. Pleasants, 6 Va. (2 Call) 270, 283-84 (1800). 4 All interests of John Henry White under the Bailey will are valid because they necessarily vest, if at all, within that period.

The alternative gift to the heirs and distributees of John Henry White, should he die before termination of the trust, is likewise valid provided that gift must vest, if at all, within the period described in the preceding paragraph.

By definition, any decedent’s heirs and distributees are the class of persons who are described in the Virginia statute of descents and distributions and who are living at the decedent’s death. In interpreting the alternative gift to John H'enry White’s heirs and distributees, however, we are asked by the appellants to supply the further condition that each member of the class must also be living on the twenty-fifth anniversary of the testatrix’s death. But we can interpret the will as imposing that further condition only if such an intent is clearly expressed or implied by the language of the will.

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Related

Hagemann v. National Bank & Trust Co.
237 S.E.2d 388 (Supreme Court of Virginia, 1977)
Elliott v. Griffin
237 S.E.2d 396 (Supreme Court of Virginia, 1977)
United Virginia Bank v. Baldwin
7 Va. Cir. 471 (Richmond County Circuit Court, 1977)
Meyer v. House
19 Va. Cir. 467 (Henrico County Circuit Court, 1974)

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Bluebook (online)
186 S.E.2d 21, 212 Va. 568, 1972 Va. LEXIS 210, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-v-national-bank-trust-co-va-1972.