McLane v. Paschal
McLane v. Paschal
Opinion of the Court
With, whatever force of rear son those who have sought to maintain a different conclusion have endeavored to impress their views, and however unsatisfactorily, as it may seem to them, their arguments may have been met, it must be admitted that it is now finally and definitely settled by this court, that a deed of trust to secure the payment of a debt does not operate as an absolute transfer of the property to which it refers, to the trastee, upon the trust mentioned in the deed, defeasible upon the conditions therein stipulated; but that‘such instrument is, in legal effect, a mere mortgage, with a power to sell. And though the death of the mortgagor does not, on general principles, revoke this power, yet its exercise by the trustee would be inconsistent and in conflict with our statutes governing the settlement of estates of deceased persons. It cannot, therefore, be executed by the trustee after the death of the constituent. And whatever rights may be secured to the creditor by such deed, they can only be enforced after the death of the debtor, through and by aid of the court. It naturally, if not inevitably follows, that such deed, instead of operating as an absolute and unconditional security for the payment of the debt for which it purports to be given, has this effect only during the life of the debtor. And after his death it only secures the creditor priority over such claims against the debtor’s estate, as by the statute it is entitled to in the due course of administration.
And it is not now open to controversy that funeral expenses, expenses of last sickness, expenses of administration, and those incurred in the preservation and management of the estate, as well as the allowances authorized to be made
Whether the fact that the wife may have joined her husband in creating the lien (I refer, of course, to cases under the former law) will bar her from claiming such allowance in preference to the creditor, has not, so far as I am awai’e, been directly passed upon by the court. And it will he time enough to consider it when it arises. Here, although the wife joined the husband in tire deed of trust, as the power of the trustee is revoked, the property can only be now sold by an order of the court. But this would be a forced sale; and if the property is the homestead, the court is forbidden by the Constitution from having it thus sold; and thereby, if the estate is insolvent, the woman is relieved from a contract which was absolute and binding upon her while her husband was living, hut takes an absolute title to the property, notwithstanding the incumbrance with which she has freely and voluntarily joined her husband in charging it.
• It follows, as a necessary conclusion from these propositions, that the com't did not err in holding that the deed of trust to French afforded no valid ground for rejecting appellee’s application to set apart to her the homestead. (Robertson v. Paul, 16 Tex., 472; Buchanan v. Monroe, 22 Tex., 537; Giddings v. Crosby, 24 Tex., 295; Caton v. Mosely, 25 Tex., 374; Dwight v. Overton, 35 Tex., 390; Donley v. Cundiff, 35 Tex., 741; King v. Cassidy, 36 Tex., 531; Gurley v. Ward, 37 Tex., 20; Petty v. Barrett, 37 Tex., 84; Reeves v. Petty, 44 Tex., 249; Mayman v. Reviere, 47 Tex., 357, overruled during the present term of the court.)
But although the superior right of the widow to the homestead over that of the creditor, by virtue of- the specific lien which she had joined her husband in charging upon it, can
When an application is made to the court to set apart the homestead for the use of the widow and children, it is unquestionably incumbent upon the applicant to show, prima facie at least, that it is the duty of the court to make the decree asked for. Unquestionably, no particular formality or strict rules of proceeding in such application is required, or has been usually observed; but where a party seeks to withdraw from the hands of the administrator, and the control of the court, a part of the property of the estate, it should be made to appear to the • satisfaction of the court, from the inventory, or otherwise, not only that the party for whom the order is asked is entitled to it, but also that the particular property asked to be set aside is the character of property to which the party is thus entitled. The order, when made, is a judgment of the court, and binding upon all parties interested in the estate, whether contesting it or not, until revoked or set aside in some legitimate mode provided by law. It would, therefore, seem that the administrator, as the general representative of the estate, should be a party to, or have cognizance of the application.
The extent, or definite boundaries of the homestead, should have been more definitely shown than was done in this application, if objection had been made. And although it may not be necessary for the applicant to show the value of the property constituting the homestead, unless where opposition to an order to set it apart is made upon the ground that it is in excess of the constitutional exemption, yet, unquestionably, in many cases, this may be a matter of vital importance ; and the fact that the property claimed is in truth the homestead, should certainly be shown before the order setting it apart should be made.
The error into which the court fell resulted, in all probar bility, as it seems from the statement of facts, from its attention being exclusively attracted to appellant’s claim to have the homestead sold for the satisfaction of his debt; while the essential question in the case before the court was, whether appellee had established her right to an allowance of the homestead, and, if so, what was its extent or boundary.
The court also erred in dfecreeing the cancellation of the trust deed. This was altogether unnecessary to secure appellee in her homestead rights; and there was no pleading calling for or warranting the action of the court in this particular.
The judgment is reversed and the cause remanded.
Reversed and remanded.
Reference
- Full Case Name
- H. H. McLane v. Mary C. Paschal
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- 33 cases
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- Syllabus
- 1. Deed of trust—Mortgage.—It is now finally and definitely settled by this court, that a deed of trust to secure the payment of a debt, .does not operate as an absolute transfer of the property, on which it is executed, to the trustee, upon the trust mentioned in the deed, defeasible upon the conditions therein stipulated; but that such instrument is, in legal effect, a mere mortgage, with a power to sell. 2. Deed of trust—Power, execution of—Estates of decedents. —Though the deatli of the party, by whom a trust-deed is executed, does not revoke the power to sell, yet its exercise by the trustee would be inconsistent with our statutes governing the settlement of estates of deceased persons; and whatever-rights are secured to a creditor by such a deed, they can only be enforced after the death of the debtor, through the courts. 3. Deed of trust—Estates of decedents.—A deed of trust, upon the death of the party by whom it was executed, only secures the creditor, for whose benefit it was made, priority over such claims against the debtor’s estate, as by the statute it is entitled to in the due course of administration. 4. Deed of trust—Lien—Estates of decedents.—A specific lien on property, (except a lien for purchase-money,) created in the lifetime of the decedent, cannot be discharged out of the assets of the estate until the expenses of the last sickness, the expenses of administration that are incurred in the management and preservation of the estate, as well as the allowances authorized to be made to the widow and children in lien of homestead and other property exempt from forced sale, have been satisfied. 6. Deed of trust—Homestead—Forced sale.—Since the execution of a trust created by trust-deed can only be enforced through the medium of the court, it follows that a sale thus effected would be a forced sale; and if the property conveyed by the trust-deed is a homestead, the Constitution prohibits it from' being thus sold. From this it results, that if the wife joined in the trust-deed to the homestead during her husband’s life, and his estate should be insolvent, she is relieved, after his death, from a contract binding on her while her husband lived, and takes an absolute title to the homestead, notwithstanding the former unsatisfied incumbrance. 6. Homestead—Estates of decedents—Parties.—In April, 1S59, I. P. and his wife, M. P., executed a deed of trust, to secure the payment of a debt, on property within the limits of the city of San Antonio, described as follows : “Being the entire homestead of the said I. P. and M. P., and including about seven acres under a plank and paling inclosure, and being separated from the convent grounds, on the south, by a street, and bounded on the east by a street, and running between the land herein conveyed and the said convent grounds and the garden on the river, of the said I. P. and M. P.” M. P., after the death of her husband, applied to the court to have “ the property mentioned in the inventory as the homestead, to wit, . blocks 27 and 31, in upper San Antonio, set aside to the use of the widow,” which, though resisted by the trustee, was done by order of the court, there beingmo evidence what particular property was occupied as a homestead when the order was made: Held— 1. When a party seeks to withdraw from the hands of the administrator, and the control of the court, a part of the property of an estate, it should be made to appear, from the inventory, or otherwise, not only that the party for whom the order is asked, is entitled to it, but the administrator, as the general representative of the estate, should be made a party. 2. The extent and boundaries of the homestead should have been more definitely shown than was done in the application; and the fact that the property claimed was, in truth, the homestead, should have been established. 3. The fact that a piece of ground was designated in the trust deed as a garden, does not raise the necessary inference that it was a part of the homestead. 4. The court erred in setting aside, as part of the homestead, the lot of ground designated as a garden.