Cleveland v. Delaware Trust Co.
Cleveland v. Delaware Trust Co.
Opinion of the Court
delivering the majority opinion of the court:
The problem presented by this appeal was caused by inexpert draughtmanship which resulted in Item 9th of the will failing to provide what should be done at the end of seven years from testratrix’ death in the event the trustee did not elect to purchase an annuity which would yield $75 monthly each to Olive Carvin Cleveland and Edward Terrence Carvin, testratrix’ sister and brother.
Item 6th directs that the sister and brother should receive $50 monthly for seven calendar years following testatrix’ death. Item 9th employs this curious language “Following the lapse of seven calendar years after my death, * * * I hereby authorize and empower my executor, if he so elects, to convert into cash and to negotiate an instrument with some reliable insurance company whereby the proceeds of the investment fund may be used to purchase annuities that will provide for a monthly payment as near to $75 or more to Olive Carvin Cleveland and as near to $75 or more to Edward Terrence Carvin, for the rest of their natural lives * * The item is completely silent as to what were the trustee’s powers in the event it should not elect to purchase an annuity. Nor does the codicil specifically answer this very important question.
Under the circumstances, counsel for Jeanne Edwards,
A careful reading of the entire will and codicil leads to the inescapable conclusion that testatrix’ brother and sister were the paramount objects of her bounty and that she intended to give them a life income from the corpus of her estate, even to the extent, if necessary, of exhausting her entire estate. The most significant factor, though by no means the only one, pointing to this result is the language of Item 6th of the codicil which states, inter alla, “should any part of my trust estate remain upon the death of my brother, Edward Terrence Garvin, and my sister, Olive Garvin Cleveland * * *” then the trustee is directed to pay $75 monthly to the niece, or to a cousin should the niece then be dead. We think, then, that without resort to extrinsic evidence, the will is fairly capable of the interpretation that testatrix intended that her brother and sister should have a life income from the trust established by Item 6th of the codicil. The Vice Chancellor apparently arrived at the same interpretation for he said:
“It is apparent from Item 6th of the codicil that the testatrix contemplated the creation of a trust which would last during the lives of her brother and sister, or until the fund was exhausted.”
The Vice Chancellor, however, concluded that Item 6th of the codicil impliedly repealed Item 9th of the will, the power to elect to purchase an annuity, and arrived at the result that testatrix intended that her brother and sister
If the will, as we think, left a life income from the trust to the brother and sister, then the only question remaining is one of interpretation, namely, how much they were to receive. And in analogous cases courts have not infrequently resorted to an examination of the entire instrument, together with such extrinsic evidence as may be germane, in order to arrive at the intention of the testator with respect to amount.
This is not a situation where a testator left a life estate in a fund without specifying the amount of income the beneficiary should receive. In such event it would be supposed that the beneficiary would receive whatever income such fund produced and no more. Here, testatrix specified that her brother and sister should receive $50 per month each for seven calendar years after her death even though the fund might be thereby exhausted, which negatives the thought that after seven years from her death, they were to enjoy only such income as the trust might produce. Further, by Item 9th, she has provided for an increase in the monthly payments to $75 each should the trustee elect to purchase an annuity.
Now, bearing in mind our conclusion that the brother and sister were the life beneficiaries of the fund, and that the payments of $50 each monthly were to last for seven
Moreover, we are of the opinion that resort to certain extrinsic evidence may properly be had in order to arrive at testatrix’ intent in this respect. The uncontradicted evidence shows that, at the time she made her will, certain insurance policies were in force which she had taken out on her own life to provide monthly payments of $50 to her brother and a like sum to her sister. These payments would commence, of course, upon her death and under the terms ©f the policies would continue for seven years thereafter when the payments thereunder would terminate. This one fact sheds considerable light upon the terms of the will and codicil. From the insurance proceeds and from Item Sixth of the will, her two principal beneficiaries would receive $100 monthly each for seven years following her death, that is, $50 each from the trust and $50 each from the insurance. After seven years, the insurance payments would cease. What is more natural to suppose than that testatrix wished the monthly income from the trust to be increased after seven years in order to compensate partially for the loss of the insurance payments?
Assuming the correctness of this reasoning it is not difficult to conclude that testatrix intended at the expiration of seven years from her death that the monthly payments to her brother and sister should be increased to $75 for their lives, or until the corpus became exhausted. We say this because in our judgment it would be altogether unreasonable to suppose that testatrix intended an increase in the monthly payments only if accomplished by means of the purchase of an annuity.
The problem here presented is not an easy one. A layman prepared the will and the choice of language was most
The decree of the Vice Chancellor is accordingly modified .and a mandate will be entered in conformity with the views expressed.
57 Am. Jur. Wills, Sec. 1167 and Cummings v. Tolman, 292 Mass. 58, 197 N.E. 476, 101 A.L.R. 1457, with annotations at 1461.
Dissenting Opinion
(dissenting) : The pertinent provisions of the will and codicil, together with the contentions of the respective parties, appear in the majority opinion of this court and in the opinion of the Vice Chancellor below. 30 Del. Ch. 339, 61 A. 2d 126.
It is with extreme reluctance that I disagree with my associates, but I find it very dangerous for courts, in order not to declare a partial or total intestacy, to supply necessary provisions in order to accommodate their interpretation of testamentary intention. I cannot escape the conclusion in the present case that a partial intestacy took place after seven years from the testatrix’ death insofar as Olive Garvin Cleveland and Edward Terrence Garvin are concerned, which would result in Jeanne Garvin Edwards being the beneficiary of monthly payments in the amount of $75.00 for her lifetime, in accordance with Item 6 of the codicil.
Reference
- Full Case Name
- Olive Carvin Cleveland and Edward Terrence Carvin, Below v. Delaware Trust Company, a corporation of the State of Delaware, Trustee under the Last Will and Testament of Lucy Merritt Carvin, Below, and Jeanne Carvin Edwards and Albert McLaverty, Below
- Cited By
- 1 case
- Status
- Published