Hillyer v. Vardewater
Hillyer v. Vardewater
Opinion of the Court
I I have not been able to satisfy myself that the testatrix failed to create a trust by the terms of her devise to her executors, and gave merely a power in trust which was sufficient for all the purposes of the will. I admit that very much may fairly be said in support of that construction; but since I have reached the conclusion that the trust, if created, was valid, and did not unduly suspend the power of alienation, I prefer to put my opinion and my vote upon that basis.
The substance of the testatrix’ provision is a devise of the
Obviously, very much depends upon the manner in which we approach the inquiry, and the presumptions which are controlling. If we come to it on the theory that the form of expression, as of a single trust, is prima fade to dictate the conclusion, and that no severance is to be adjudged unless some words or provisions are to be found on the face of the will which affirmatively indicate in the testator’s mind the presence of such purpose, we are very likely sometimes to be troubled to find them, and to be forced to a destruction of the trust by reason of their absence. If, on the other hand, notwithstanding the devise in sólido, and the admitted joint
The importance of this distinction is, to my mind, so great that some consideration should be first given to its origin, and its recognition by the authorities.
It became one of the subjects of discussion first by the chancellor and afterwards by the cpurt of errors, which reversed his decree, in the case of Lorillard v. Coster, 5 Paige, 172, and 14 Wend. 265, and which is interesting not only from the vigor of its reasoning, but, because, for the first time in the court of last resort, it brought under review the new system formulated by the Revised Statutes. The case need not be studied in all its numerous details, but attention should be given to the particular form of devise which led' to the discussion. The testator had made his brother and twelve nephews and nieces his executors, and devised his real and personal estate to them as joint tenants, and not tenants in common, in trust, among other things, to pay over a residue 'of the rents and profits to such twelve nephews and nieces, during their natural lives, and to the survivor or survivors of them, to be equally divided between them or such of them as should from time to time be living, share and share alike. After the death of the twelve nephews and nieces the estate was to be equally divided among all their children and the surviving children of such of them as might . then be dead. Both courts agreed that the devise over was too remote, and, therefore, void ; but disagreed as to the trust for the application of income. If that contemplated an estate in the trustee for twelve lives before it could vest, it was, of course, void; but the chancellor held to the contrary upon the proposition that the nephews and nieces took severally
We are next to see what became of this doctrine in our own court after its organization. In Savage v. Burnham, 17 N. Y. 571, it was said that if the beneficial interests under the will had been given to all the children in the joint tenancy, and the will had required the whole estate to be kept together under the trust until all the lives or minorities were spent, it would have suspended the absolute ownership.
In Everitt v. Everitt, 29 N. Y. 39, the whole estate was enveloped in a single trust to the executors for the purpose of the will. Question arose over the bequests to the children, and here I quote the language of the court: “ But the bequests constituted the legatees tenants in common, and they took distributively, and not jointly. It has long been a provision of statute law that a grant or devise to two or more persons in their own right creates a tenancy in common, unless expressly declared to be a joint tenancy. The rule is different as to the estates of trustees and executors, who always hold in joint tenancy. But we are now dealing with the interest of the defendants in the residue of the testator’s estate, and not with the rights of the trustees. The latter, if the trust was legal, were doubtless joint tenants, but the beneficiaries took the interest intended for them as tenants in common. If this was less clearly so upon the terms of the statute, the particular provisions of this will show that the gifts were distributive, and not joint.” The language thus quoted applies the statute explicitly to the equitable interest of beneficiaries. In a later case the presumption was utilized where its aid was sorely needed. McKinstry v. Sanders, 2 T. & 0. 181; affirmed, 58 N. Y. 662. There were phrases of -survivorship, and it was deemed an important element in the discussion that a tenancy in common was to be inferred from the equality
It follows that, in examining the present will, we are to assume that the three children took as tenants in common, unless that is impossible or forbidden. Whether it is so or not remains the subject for consideration. That the testatrix meant that each of her children should have one-third of the income and one-third of the principal is quite apparent, but whether her purpose was so expressed as necessary to postpone the vesting, and turn the presumed tenancy in common into a joint tenancy may, perhaps, be most severely tested by a possible hypothesis. Let us suppose that one of the three children had died two years after the death of the testatrix and had left issue her surviving, and we were obliged to determine whether the terms of the will disinherited that issue and carried the parent’s one-third over to the surviving sisters at the end of the trust term. There is no provision for survivorship. The ultimate vesting of the fee is in the three children, not in such of them as may be living at the end of ten years. We had exactly that question presented under another will in case of Goebel v. Wolf, 113 1ST. Y. 405; 23 N. Y. State Rep. 176, where the trustees were directed to divide the estate on the arrival of the youngest child at the age of twenty-one years equally among the children, share and share alike. The question presented was said to be whether each child took, on the testator’s death, a future vested estate in the undivided one-fourth part of the property descendible to heirs and next of kin, or whether the gift was to a class and to such only as survived the trust term. There, as here, there was no immediate
What is there which forbids this intended and inevitable result ? The one thing which can be said, and the only thing possible to say, is that on the face of the will there is disclosed an intention of the testatrix to keep the property together without division in the hands of the executors for ten years. It would not alter the case if such, was the fact. But no such absolute intention appears. It does appear that such was her purpose if all three children survived the ten years. The devise assumes their survival. At the end of ten years the whole property is to be equally divided among the three, and no word is said which contemplates their earlier death, and no provision is made for the contingency of their decease. We have a right to say from the terms of the will that the testatrix meant to have the whole property kept together, in bulk, for ten years, if her three children lived so long as that, but we have not the least warrant for saying that such was her intention if one or more should die at an earlier date, for she has expressed nothing of the kind. On the contrary, the very absence of a provision for that emergency shows that her purpose was not to keep it together in that event, but let the law separate it after its normal fashion. Indeed, there is some slight indication that she meant to make that separation easy and convenient if necessity for it should occur. The will not only authorizes a sale of the real estate at the end
But even if the purpose to keep the property together in the hands of the trustees for the ten years, under all circumstances and in every emergency, could be gathered from this will, the fact alone would not destroy the tenancy in common of the beneficiaries, and prevent the severability of their interests. The difference between a joint tenancy and a tenancy in common is said to be that in the former there is unity of title and possession, and in the latter unity of possession without unity of title. The divisibility of rights does not inevitably involve a divisibility of actual possession at the moment when the rights accrue. The several right may exist, although the actual possession under it and in accordance with it is postponed.
As was said in Manice v. Manice, 43 N. Y. 370, a vested estate can exist in an' undivided share as well as in a specific piece of land, and in Vanderpoel v. Loew, 112 N. Y. 180; 20 N. Y. State Rep. 654, the shares and interest are several, although the fund remains undivided. And so if it were possible to say, which I do not at all admit, that the will required the land and the money to remain for management and administration in the hands of the executors for ten years, in any event, that would not necessarily prevent the existence in it of a several interest to an undivided share, or force the tenants in common into the position of joint tenants. In some instances it might bear on the question, but would not be conclusive. Indeed, in Goebel v. Wolf, supra, we vested in each of the four children an undivided one fourth of the residue, subject to the trust, although it was to run for a long period, and required the property to be kept together, and, indeed, permitted the trustees to use it in carrying on the business of the deceased.
Dissenting Opinion
must first ascertain what the
The testatrix gives all the residue of her estate to her two daughters, whom she appoints executors “ in trust for the execution of her will ” that is, she gives it to them in trust-for the purposes of her will, which are afterwards mentioned and defined; and she clothes them with a discretionary power to sell, lease, mortgage and dispose of the property as they shall deem best for the interest of her estate. Then she defines the trust. The trustees are to keep the real estate insured, to provide for rebuilding in case of loss by fire, to convert all the personal estate into money, and keep the same invested in interest-bearing securities, to collect the rents and profits accruing from both real and personal estate, to pay taxes, assessments, insurance and repairs and other necessary expenses connected with the care, management and administration of the estate, and after these deductions from the income of the estate they are to divide the residue, into three equal portions, and periodically during ten years after her decease pay one-third part thereof to each of her three daughters. During the ten years they are to keep the estate and manage it as directed, and at the expiration of that time, and not until then, they are directed to sell and convert all the estate, both real and personal, into money, and distribute the same among the daughters, share and share alike.
Here there is plainly, as to the real estate, such a trust as is mentioned in and authorized by § 55 of our statute, “ of Uses and Trusts.” The trustees are to receive the rents and profits of the real estate, and apply them to the use of the
Suppose some securities set off to one daughter during the ten years prove to be worthless, upon whom will the loss fall ? Clearly upon the whole estate, and not upon any
The daughters during the ten years, and while the trust is in force and the whole estate, therefore, vested in the trustees, have no estate or interest in the lands, except a remainder subject to the trust estate. Sections 60, 62. And if either of the daughters die during this time her remainder will pass from her just as she leaves it, to wit,.subject to the trust. Goebel v. Wolf, 113 N. Y. 405; 23 N. Y. State Rep. 176. It may be admitted without solving any difficulty, that the three daughters at the death of the testatrix became tenants in common of the remainder; but that tenancy during the ten years is subject to the trust. If during the term one of the daughters should convey her share in the remainder, the purchaser would take it subject to the trust; and if either of them should die during the term, her representatives would take her remainder subject to the trust, and the duty of the trustees, who during the term are joint tenants, to divide the estate at the end of the ten years between the persons then entitled to the same, would still remain.
There was, therefore, an attempt to create a trust term for ten years, during which time, if the trust is valid, the
The court at the trial term came to the conclusion that in consequence of the power of sale given to the trustees, there was an equitable conversion of the realty into personalty at the death of the testatrix, and that, therefore, the share of each daughter in the estate was vested in her as personalty at the death of the testatrix. In this there was manifest error. During the ten years there is simply a discretionary power of sale, such as never works a conversion into personalty until the sale takes place, and there is thus an actual conversion. There is no absolute direction to sell until the end of ten years, and hence an equitable conversion cannot take place until that time. Savage v. Burn-ham, 17 N. Y. 561. But even if we should assume that the equitable conversion took place at the death of the testatrix, the result would still be the same, as then the personalty would still he held upon the same trusts mentioned in the will during the ten years, and the trust would still be indestructible, the estate inalienable and the absolute ownership thereof during the ten years suspended.
After much discussion and some vacillation and difference of opinion among judges, it was finally determined in Graff v. Bonnett, 31N. Y. 9, and Campbell v. Foster, 35 Id. 361, that the interest of a beneficiary in a trust of personal estate for a term is inalienable like his interest in a trust of real estate, that such a trust is indestructible like a valid trust of real estate, and that consequently a valid trust of personal estate, during a trust term, suspends the absolute
The attempt is now made to uphold these provisions of the will by construing them as creating three separate trusts, one for each daughter, which would terminate at her death if she died within ten years, and, therefore, could not extend beyond her life in any event, and would thus be legal. As stated above, there is not the least ground for such a •construction to be found in any language used in the will. There is no arbitrary rule requiring such a construction. It is quite true that courts will, if possible, construe the language of a will so as to make its dispositions valid rather than invalid. But for the purpose of rendering the dispositions of a will valid, its plain language cannot be disregarded, and the plain intention of the testator be violated. If the construction of a will be doubtful, or if it be possible to construe language in different ways, that construction will be given which will uphold the will. But for the purpose of rendering the dispositions of a will valid, courts cannot disregard, emasculate or distort language and reconstruct the will, and thus make a will rather than construe it. If it is found from the language of a will that the testator intended to make a disposition that is really illegal, courts must condemn the disposition and hold it to be invalid ; otherwise the law is thrown into confusion, the construction of wills becomes uncertain, and those who in the discharge of professional or judicial duties are called upon to construe wills will have no guides and no landmarks to go by.
A careful examination of the cases shows that there is absolutely no authority for the separation of this single trust into three separate trusts for the benefit of each of, the daughters during the ten years.
In Jennings v. Jennings, 5 Sandf. 174, the testator gave
“ When the eldest survivor -became of age the whole property, except that at Swedesborough, was to be appraised, and such survivor’s equal share apportioned to him. It would still remain in the trust, if she did not require its transfer, but it would nevertheless be alienable. But the residue must remain in trust inalienable, to provide for the future apportionments. How there is this insuperable obstacle to treating the estate as divided into equal fourth parts at the testator’s death, or the residue into equal third parts after the eldest, if she survived, had received her share. The appraisement was in each instance to be made at the period when the respective children became of age, and the apportionment was to be made upon the value then ascertained, and not upon the value at the testator’s death; or in respect of the three youngest, on the value when the eldest became .of age. To illustrate this, we will suppose that the testator’s personal property consisted of four bonds and mortgages of $6,000 each. In that case, if each child were entitled at his death to an equal fourth, and there were no other clause in the will preventing a severance into equal shares, it would be the duty of the trustee at once to set apart one bond and mortgage to each, subject to a contribution from each to the support of the widow. Then suppose that the bond and mortgage" allotted by the trustee to the eldest had turned out to be worthless. Ho one will pretend that when she became twenty-one she would be compelled to receive the worthless security, as and for her share of the testator’s estate, which by the terms of the will was to be then finally appraised and valued, and appor
In Hone v. VanSchaick, 7 Paige, 221, the testator devised and bequeathed to his wife the use of his mansion house for life, together with his furniture, books, etc., and an annuity of $3600, in lieu of dower, and then devised and bequeathed all his estate, real and personal, to his executors in trust for the purposes of his will, and directed them to convert the personal estate into cash, and invest the same in bonds and mortgages or stocks, and to sell a part of his real estate and invest the proceeds thereof in the same manner, and to lease the residue of the real estate so that the interest and income of the whole property might form a general fund, out of which he directed his executors to pay the annuity to the widow, and to divide the residue of that fund, as it should
In Coster v. Lorillard, 14 Wend. 265, a testator devised and bequeathed all Ms real and personal estate to Ms brother, and to twelve nephews and nieces, in trust to pay over and divide the rents and profits of Ms real estate to and among the same twelve nephews and nieces, during their natural lives, and to the survivors and survivor of them equally, to be divided between them, or such of them as should from time to time be living, share and share alike ; and the trust was held void. It was decided that there was a devise in trust of the entire estate to receive the rents and income thereof, and to distribute them among several cestui que trusts, and that it could not be considered as a separate devise of the share of each cestui que trust, so as to protect the share of each as a tenant in common during his own life; and that as the trust was to endure for a longer period than two lives in being at the death of the testator, the whole devise in trust was void.
In Converse v. Kellogg, 7 Barb. 590, the testator by Ms
In this case, by the plain language of the will, the possession of the property is to remain in the trustees for ten years, and during that time they are to be the general owners thereof with the right of possession and the right to control and manage the same, and there is to be no division thereof until the expiration of ten years.
In Colton v. Fox, supra, the will of Ruben Parsons, after various specific legacies and devises, gave the residue of his estate, real and personal, to his executors in trust, to pay the income and profits to two brothers and two sisters of the testator in equal proportions during their joint lives, and after their “ several deaths,” to divide the residuary estate equally among their children. The provision closed thus: “ In case either of my said brothers or sisters shall die, leaving the others surviving, then the income herein intended for the one or the other so dying shall be paid to the issue or the representative of the one or the other so dying.” In an action for the construction of the will, it was held that the design of the testator was that the corpus of the estate should remain undivided in the hands of the executors until the decease of all of the brothers and the sister named: that the interests of the children of the respective brothers and sisters named did not vest in them at the death of the testator, but was future,' and contingent upon their surviving the parent, and that the provision was in contravention of the statutes against perpetuity, and so void. Chief Judge Church, writing the opinion, said, “Here, in the first place, the title is in express terms vested in the executors, and there is no provision for paying any part of the corpus until the death of the four beneficiaries ; in fact, as we have seen, the provisions of the will repel any such idea. The testator placed the title of this portion of his property in his executors, and directed that it should remain there until the death
While these cases are not exactly like the one under consideration, they bear a strong analogy to it, and the principles which controlled their decision are applicable to it.
In Mason v. Mason’s Executors, 2 Sandf. Ch. 432; De Peyster v. Clendining, 8 Paige, 295; S. C. 26 Wend. 21; Savage v. Burnham, supra; Stevenson v. Lesley, 70 N. Y. 512; Monarque v. Monarque, 80 Id. 320; and Wells v. Wells, 88 Id. 323, it was held in each case, upon language somewhat doubtful, that several trusts were constituted, instead of a single trust of the entire estate disposed of. In such case the court reached the conclusion that there were several trusts from particular phraseology contained in the will, showing that it was the intention of the testator that the trust estate was to be divided into shares, and each share held upon a separate trust; and in each case there was language showing that the testator intended that each beneficiary should have the income of the separate share set apart for his benefit. Here there is no such phraseology in this will. There is absolutely nothing indicating that the corpus of the estate is to be divided into shares prior to the expiration of the ten years. The trust is to continue during the entire ten years, and the whole estate during that time is to be held as an entirety, and at the end of that time the trustees will still have a trust duty to perform with the entire estate, which cannot be performed earlier, to wit, to convert the estate into money, and to divide and distribute it among the three daughters.
The case of Tucker v. Bishop, 16 N. Y. 402, is cited as an authority to establish the validity of this trust. It is not easy to reconcile some of the views expressed in the opinion in that case with later decisions in this court. There a testator bequeathed his residuary personal estate to his executors in trust to invest the same, declaring that one-half, principal and interest, should be for the benefit of the
I have therefore reached the conclusion that this will violates our statutes against perpetuities, and that, hence, the judgment below should be reversed and a new trial granted, costs to abide the event.
Finch and Gray, JJ., read for affirmance of judgment, with costs ; Ruder, Ch. J., and Andrews, J. concur.
Earl, J. reads for reversal; Peckham and O’Bbrien, JJ. concur.
Concurring Opinion
While I think the question presented by this appeal is by no means free from doubt, I shall vote for an affirmance of the judgment. I am, however, unable to concur in the views of Judge Ebstch:, which lead to that result. If an express trust was created, then it seems to me it was a single trust for the three daughters, and invalidated the testamentary disposition by suspending the absolute ownership and making the estate inalienable for ten years. I place my vote upon the ground that the disposition of the residuary estate can be upheld and effectuated by the executors under a power in trust. I think the terms employed by testatrix are not so precise and unmistakable in meaning as to preclude us from saying that one of the statutory express trusts was not created by their use. The dominant idea and the plain intention of testatrix were to keep the estate together until at the expiration of a period of ten years, if not sold before, it should be sold and converted into money and partitioned among her daughters. All the acts which she requires in the fifth and sixth clauses are to be performed by her executrices, and could be performed under a power. The important act of partitioning the estate under the sixth clause could only be done under a power. With some degree of hesitation, therefore, I express the opinion that the estate vested, at the death of testatrix, in the three daughters, subject to the execution of the powers in trust conferred upon the executrices of the will.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.