Packer's Estate
Packer's Estate
Opinion of the Court
Opinion of
The question here involved is /‘Did the trusts under the testator’s will cease upon the death, October 29,1912, of Mary Packer Cummings, the last survivor of the three children named in his will, or, as contended by the appellants, do they continue for twenty-one years from said date?”
Asa Packer died May 17, 1879, leaving a will and codicil, which were duly probated; he designated five executors, to whom he devised all his property in trust, as is more particularly shown in the abstract of the will to be found in the reporter’s notes published in connection with this opinion. The testator left to survive him a widow, who died intestate, November 17, 1882, and three children, Robert A. Packer, who died February 20, 1883, Harry E. Packer, who died February 1, 1884, and Mary Packer Cummings, who died October 29, 1912; all testate and without issue.
Shortly after the death of Mrs. Cummings, Asa Packer’s trustees filed an account embracing his residuary estate, and at the adjudication of this account, the auditing judge construed the will as showing two dominant thoughts, (1) To keep under the control of the trustees designated by the testator and their successors, all his stock and other securities of the Lehigh Valley Railroad Company and its affiliated corporations, for as long a period (within the limits of the law) as in their judgment might seem best; (2) To keep a large portion of his property in trust for the benefit of the three children named by him, and their descendants, as long as permitted by law. The trustees were given the right, however, in their discretion, to dispose of the testator’s Le-high Valley Railroad holdings; and this they did be
In an elaborate opinion sustaining the conclusion that the trust had terminated, Judge Anderson, speaking, for the Orphans’ Court in banc, so well states the views of that tribunal, that we cannot do better than to quote liberally therefrom. It is there said: “The law of Pennsylvania, following the law of England, prescribes a time limit to the power of a testator to tie up his estate; and that is during the period of a life or lives in being and twenty-one years thereafter; and it is clear that, when the testator sat down with his scrivener to. create the trusts under the will in controversy, that time was fixed in their minds as the limit beyond which they could not go; for we read in the thirty-first item of this will that this trust shall terminate twenty-one years after the death of the last survivor of his children. A trust, however, whether limited to a life or for years, will not be upheld if its purpose fail before the expiration of the life or term of years. This is well illustrated by........ Kuntzleman’s Est., 136 Pa. 142; Lee’s Est., 207 Pa. 218; Koenig’s App., 57 Pa. 352;......Woodburn’s Est., 151 Pa. 586; Coover’s App., 74 Pa. 143; McMullin v.
Mrs. Cummings, by her will, devised twenty twenty-thirds of the share of the income of the Packer estate over which she had power of appointment to the Lehigh University, for twenty-one years, and the principal at the expiration of that period; to the appellants (the trustees under her will), she devised the remaining three twenty-thirds of income, in trust for twenty-one years, to support three annuities during that period, and to pay the balance of income not necessary for this purpose to certain charities named by her, the principal to go to these charities at the termination of the trust. The appellants contend that the entire residuary estate of Asa Packer must be. held together for twenty-one years from Mrs. Cummings’ death; so that the provisions of her will may be literally carried out by them. The court below took the position that, while the children of Asa Packer were given certain powers of disposition over principal and income derived from his residuary estate, yet, their control was subject to the terms of his will, saying, “The power of appointment over income was to appoint during the life of the trust; after that the power was to appoint the same proportionate part of the principal....... There is nothing in the will, however, which contemplated the appointment of income beyond the life of the trust, and the mere fact that the appointor......can fix a time limit in her appointment of income cannot prolong the duration of the trust; being entitled to appoint the principal at the termination of the trust, she can provide, as she did, that income only shall be payable during twenty-one years. But this is not a portion of the income of testator’s whole estate, but the income from the definite share of the principal which she was entitled to appoint.
The Packer will contains no express direction that the trust in question shall continue for twenty-one years, or any other definite time; in fact, this period is only mentioned once, and that is in' the thirty-first article, where the testator directs that the trust “shall terminate twenty-one years after the death of the last surviv- or of my said three children.” When read as a whole, the will strongly suggests that the testator, having in mind the rule against perpetuities and the principle that the possibility of a conflict between it and a testamentary disposition is sufficient entirely to avoid the latter (James Est., 245 Pa. 118), inserted this provision to make sure to keep within the law. He, no doubt, desired to show express recognition of and compliance with the rule in order to avoid the possibility of conflict between it and the trust created for his “children and their children and issue.” In other words, the testator’s dominant purpose was to keep the Lehigh Valley securities under the control of his trustees and to protect his three living children and their issué for as long a time as permitted by law, — not to create a trust for the definite period of twenty-one years. The arguments against this conclusion are not convincing. In answer to those not already touched upon, we may say that, in our view, the •word “then,” , as used in the 31st paragraph of the will,
The construction adopted by the court below is not only reasonable, and in accord with the applicable principles of law and the relevant rules of interpretation, but it avoids either a partial intestacy as to one-half of the income from the decedent’s residuary estate or an invalid accumulation of such income; one or the other of which would result if the will were construed to mean that the trust under consideration must continue for twenty-one years after the death without issue of the last of the testator’s children (McBride’s Est., 152 Pa. 192; Sidall’s Est., 180 Pa. 127; Lefebvre v. D’Arcy, 236 Pa. 235). There are several appeals in this case; and for that reason we shall leave it to the court below to make a proper order covering the costs. All the points here discussed are raised by the first assignment of error; this assignment is overruled and the others are, dismissed.
The decree is affirmed; the costs to be paid by ,the appellants and others as ordered by the Orphans’ Court when the record is returned to it.
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- Wills — Trusts—Duration — Termination — Construction — Intention. 1. It is a fundamental proposition in construing wills that the testator’s intention must govern and that this intention is to be gathered not from any particular words, phrase or paragraph' but from the four comers of the will, and the best way of arriving at that intention is to place ourselves in the position of the testator and from that standpoint read the will. 2. A trust whether limited to a life or for years, will not be upheld if its purpose fail before the expiration of the life or term of years. 3. A testator by will bequeathed his estate, which consisted in part of the stock and securities of a railroad and affiliated corporations, in trust, empowered the trustees in their discretion to invest in the securities of the railroad and affiliated corporations, and to sell the same, authorized them in their discretion to transfer to certain charitable institutions to which testator had bequeathed the income of certain funds, the principal thereof, which consisted largely of railroad stocks, provided that the railroad investments should he controlled by the trustees even after transfer to the charities if it could lawfully be done, gave the residue of his estate in trust for each of his three children and empowered each child to appoint by will one-half of such child’s share of the income during the continuance of the trust and one-half of such child’s share of the principal at the termination thereof, with a gift over of . one-half of the income of each child’s share to the children of such child during the continuance of the trust and one-half of the principal of such child’s share at the termination thereof. Testator further provided that in the event of the failure of any of such children to exercise the power of appointment, the unappointed share should be disposed of as was provided in reference to the remaining one-half of said income and principal which such child or children were not authorized to dispose of by will; that in case any of his children should die without children, one-half of the income of such child should be paid over to the survivors and their children during the continuance of the trust and one-half of the principal on the termination thereof; that in case there should be no one descendant of the said three children living at the termination of the trust, the property in the hands of the trustees should go, one-third to the children of a deceased daughter and their issue, one-third to testator’s nephews and nieces, and the remaining third to certain charitable institutions theretofore motioned. Testator further provided, “to avoid any possible misapprehension as to my purposes in the said will, I now repeat that I wish my executors and trustees to retain and continue my investments in the stock and other securities of the......railroad company and other companies connected with it during the continuance of the trusts under said will or for as long a period as at their discretion may be deemed best.” Testator also provided that the “trusts under this will shall terminate 21 years after the death of the last survivor of my three children.” Testator’s three named children died without issue. The last survivor of said children by will bequeathed that portion of the estate of her father over which she had the power of appointment, to trustees to pay certain annuities for the period of 21 years after her death and at the expiration of that time, she bequeathed the principal to certain charities. Upon the death of such surviving child, the trustees of. testator’s estate filed an account wherein it appeared that the trustees had sold, or assigned to the charities the stock and' securities of the railroad and affiliated corporations and that their control over such stock and their connection therewith had ceased. The auditing judge declared the trusts ended upon the death of the last survivor of testator’s children and awarded to the trustees appointed by the will of such last surviving child, the share of the principal of the estate which she had bequeathed and over which she had the power of appointment. Such trustees contended that the annuitants were entitled to receive their share of the income of the entire estate; that the residuary estate should be kept together for this purpose for twenty-one years from the death of the last of testator’s children and complained that they were compelled by the decree of the court to take for their beneficiaries the entire income from a fraction of the estate whereas -their right was to have a fraction of the income of the entire principal. The court in banc dismissed exceptions to the adjudication of the auditing judge. Held, that the dominant purposes of the testator were to keep under the control of the trustees designated by the testator and their successors the stock and other securities of the railroad company and its affiliated corporations for as long a period within the limits of the law as in the trustees’ judgment might seem .best, and to keep a large portion of the property in trust for the benefit of the three children named by him and their descendants as long as permitted by law; that the railroad securities having been sold or turned over to the charities and the three children having died without issue, the trust had served its purpose and should be terminated, and the decree was affirmed.