Majority
Headnote
A testator, by his will, devised certain premises in the city of New York to his widow, daughter and son, “ in equal portions, to them and their heirs forever, to have and to hold said estate upon the conditions, qualifications and reservations herein contained, and subject to a trust to be executed by my said executors, who are hereby appointed trustees for the purpose.” The executors were required to have the control of the property for the purposes of their trust, to enable them to execute the duties of their appointment; to rent the premises; to collect the rents; and, after paying the taxes and premiums for insurance, to pay certain designated annuities to various -persons, including the father and sisters of the testator, amounting in all to the annual sum of $850, apply the balance towards the payment of two mortgages, one on the property yielding such rents, the other upon a farm in Connecticut, devised to the testator’s son, and at the expiration of the trust, to surrender the property to the persons to whom it was devised, subject to the performance and discharge of all these duties.This action is brought by the plaintiff as surviving executor under the will of Edward P. Allen, deceased, to procure the judgment of this court, declaring the proper construction of such will. The widow and children of the testator insist that the will is void so far as it attempts to create a trust in the executors; while the other defendants, wrho are annuitants under its provisions, insist that no trust whatever is created by it. The premises to which the present controversy relate are designated in the will as number nine Spruce street, in the city of Hew York, and by the terms of the testator’s will they are devised to his widow, Julia G-. Allen, his daughter, Catherine E. Allen, and his son Edward P. Allen, “in equal portions, to them and their heirs forever, to have and to hold said estate upon the conditions., qualifications and reservations herein contained, and subject to a trust to be executed by my said executors, who are hereby appointed trustees for the purpose.”
While the property is devised to the widow and children, the intention of the testator is as clearly expressed, that the devise of it shall be subject to a trust in the same property, which, if valid, must, for the time of its existence, prevent the estate devised from vesting in the devisees. In other words, the devise to the widow and children will vest the property devised in them, subject to the interest vesting in the trustee for the execution of the trust. Ho specific devise of the property is made, even to that extent, to the executors by the terms of the will. And the question, therefore, arises, whether the powers and duties
By these different provisions, in addition to the designa- • tion of the interests intended to be vested in the executors' as a trust, and of themselves as. trustees, they are required to have the control of the property for the purposes of their trust, to enable them to execute the duties of their appointment, to rent the premises in which such interest is created, to collect the rents accruing therefrom, and after paying the taxes and premiums for insurance, to pay certain designated annuities amounting in all to the annual sum of $850, apply the balance toward the payment of two mortgages, one on the property yielding such rents, the other upon a farm in Connecticut devised to the testator’s son, and at the expiration of the trust, to surrender the property to the persons to whom it is devised, subject to the performance and discharge of all these duties. That these provisions in the will create a trust, as the testator plainly intended they should, very clearly follows from the principles settled by the cases of Leggett v. Perkins, (2 Comst. 297,) and Tobias v. Ketchum, ( 32 N. Y. Rep. 319 , 330.)
As a trust must be held to have been created in the executors in the property in question, the next inquiry arising is whether it is of an unlawful character. And that will depend upon whether the absolute power of alienation may be unlawfully suspended by the execution of the trust. When the will was made, two mortgages existed upon the testator’s property. One upon the farm in Enfield which was devised to his son. That mortgage has since been collected by a foreclosure of it, and a sale of the farm. The other was upon the Spruce street property, and at the time of the testator’s death there was $18,000 unpaid upon it. Since that time the plaintiff has paid the interest upon it, and reduced the principal secured by it to the sum of $15,000. The only funds or means appropriated by the testator for the payment of this mortgage debt is that of the surplus rent of the Spruce street property, remaining after payment of taxes and insurance, and the seven annuities provided by the will. The trust created by the will is required to continúe until the mortgage debt shall be paid. The provision made on that subject is as follows: “It is my will that when said lot and store in Yew York city, known as number nine Spruce street, are free from incumbrances, and the said mortgages
It is very clear from the will, in this case, that the leading object of the testator was to provide for the payment of taxes and premiums for insurance, as well as the mortgages upon his property, and the annuities provided for out of the rents of the Spruce street property; and he intended to accomplish that object, but has failed to do so, only in the precise way he selected for accomplishing it. This object can be secured by sustaining those portions of his will, concerning the validity of which no objection can be made. The mortgage upon the farm is entirely out of the way, while the one on the Spruce street property is a valid lien in all respects, and is in no way dependent for its validity, or the obligation to pay it, upon any thing contained in the will. This mortgage, with the taxes and expenses of insurance, constitute the paramount obligations the rent must be applied to extinguish. Beyond them it was the purpose of the testator to so far secure the support and maintenance of his widow and children as to provide for the payment to the widow, for them, of the sum of four hundred dollars per year, and so far to contribute toward the support of his father and sisters as to provide for the payment to each of them of the sum of one hundred and fifty dollars per year, out of the annual rents of this property. And after the trust was completed, it was his intention that the annuities to his father and sis- * ters should be made specific charges upon that property, which can be done by executing his general intent although the particular event upon which the charge was to take effect can never occur, on account of the failure of the un
Judgment being entered, in accordance with the above opinion, the infant defendants, Catharine E. and Edward P. Allen, by their guardian ad litem, appealed to the general
Willett Bronson, for the appellants.
I. The trust to receive and pay over the rents and profits is void and inoperative, being limited upon an absolute term and not upon life. 1. It is a trust term, and therefore inalienable. (1 R. S. Edm. ed. p. 697, §§ 60, 63, 65.) 2. It is limited, contrary to law. (Coster v. Lorillard, 14 Wend. 65 . Hawley v. James, 16 id. 120, 171 . Hone v. Van Schaick, 20 id. 564. Boynton v. Hoyt, 1 Denio, 58 . De Kay v. Irving, 5 id. 646, 651, 652, 653. Tucker v. Tucker, 5 N. Y. Rep. 416 , 427. Jennings v. Jennings, 7 id. 547 .) 3. It has been so held by the court below.
II. The doctrine of cy-pres cannot be invoked to give validity to a void trust. 1. It has been so held by the court below. 2. By a positive rule of law it is made void and inoperative. The rule is imperative. (Coster v. Lorillard, 14 Wend. 265 . Hawley v. James, 16 id. 172, 173, 226. Root v. Stuyvesant, 18 id. 301. Irving v. De Kay, 9 Paige, 529. Amory v. Lord, 9 N. Y. Rep. 411 , 420.) 3. The fact that a devise thus void is wholly inoperative, is recognized and acted upon in all the cases where the intention of the testator has been effectuated. Whenever effect has been given to the contested disposition of property, it has been by one of the following modes: (a.) When there have been several trusts, or several limitations in a single trust, some of which have been valid and some of which have been invalid, it has sometimes been held that the valid and invalid were not necessarily connected, and effect has then been given to the valid ones. (Darling v. Rogers, 22 Wend. 483 . De Kay v. Irving, 5 Denio, 649 , 653.) (b.) Where a trust in a will has been void, and where the intention of the testator might be effectuated by operation of some other portion of the will which is valid, effect has
HI. The trust to apply the balance of the rents and profits, after the payment of the annuities, to the extinguishment of the mortgage, is so dependent upon the trust to pay the annuities, that the latter having failed, the first must fail also. 1. The whole will is a connected scheme; dependent upon a void trust, so that effect cannot be given to this portion of this trust without sustaining the whole will. (Amory v. Lord, 9 N. Y. Rep. 420 .) 2. Such an attempt would produce conflicting estates, (a.) The trust estate, created for the receipt and payment of rents and profits, being void, descends to the heirs-at-law as a legal estate. (5.) If the trust in question were attempted to be upheld, the trustee, by operation of the Revised Statutes, would take the whole estate in law and equity, subject only to the execution of the trust; such an estate cannot co-exist with the legal estate in the heirs. (Savage v. Burnham, 17 N. Y. Rep. 578 . Tobias v. Ketchum, 32 id. 327, 331.) 3. Such an attempt would also make the provisions of the
IV. The trust, as to both of its purposes, being void, the incumbrances limited to take effect after the completion of the trust are void also. 1. This provision is a'portion of a connected scheme, of which the said trust is an essential part. This appears: (a.) From the amounts given being made dependent upon the completion of the trust. (5.) From their taking effect after the two mortgages shall have been paid off. 2. Because limited upon a void trust, {a.) They are governed by the same rules as future estates in land. (1 R. S. Edm. ed. p. 674, § 36. Hawley v. James, 5 Paige, 458.) (b.) Every remainder, future estate, or other interest limited upon a void trust is void. (Hone v. Van Svhaick, 20 Wend. 566 . Irving v. De Kay, 9 Paige, 528. Amory v. Lord, 9 N. Y. Rep. 420 . Leonard v. Burr, 18 id. 107. Hawley v. James, 5 Paige, 458.) (c.) Such estates must of necessity fall. They are estates not known to the law; estates which the testator himself would not be permitted to create, and which are repugnant to and render conflicting the provisions of the Revised Statutes. (1 R. S. Creat, of Estates, §§ 7,13, 35, 36, 40, 41, 42.) 3. The said estate in remainder upon which these incumbrances are charged, having failed, the testator’s children take fee under the laws of descent, free from incumbrances. (a.) The legal estate in remainder has failed. (6.) The incumbrances charged upon it must also fall with it.
V. The judgment of the court below, effectuating the gifts of incumbrances limited to take effect after the completion of the trust, is wrong. 1. The gifts themselves are void. (Point iv.) 2. Were they .valid they could not be thus executed, (a.) There is nothing left of the will but this clause, which must be construed according to the legitimate meaning of its words. (Jackson v. Sill, 11 John. 216 . Hawley v. James, 16 Wend. 172 . Coster v. Lorillard,
YI. To declare the whole will void would work no injustice'; nor would the design of the testator be interfered with to so great an extent as it would be by any attempt to apply the cy-pres doctrine.
YU. The house and lot bio. 9 Spruce street should be declared to descend as a legal estate to the heirs-at-law, free of the trusts and incumbrances.
R. C. Brainard, for the other defendants.
I. The judgment at special term was correct in declaring the annuities in question a charge upon the real estate.. The intent to make the annuities such a charge was clearly expressed in the will, and there is nothing illegal in the nature or character of the annuities.
II. So far as the will directed the executor to receive the rents and income of the Spruce street property, and to apply them to the use of the legatees during their lives.
TIT In the construction of wills, it is a well settled principle to separate, where it is possible, the valid parts of a will from the invalid parts, and to sustain the valid parts, although they may be embraced in the same trusts with the invalid parts. (Savage v. Burnham, 17 N. Y. Rep. 561 . Gilman v. Reddington, 24 id. 9. Everitt v. Everitt, 29 id. 39. Post v. Hover, 33 id. 593. Harrison v. Harrison, 36 id. 543.)
Geo. S. Stitt, for the respondent, plaintiff.
The following are substantially the questions put in issue in this action: 1. Is the trust void? 2. Is the devise void, with the charges of certain annuities on the property of §200 each per annum, to be paid to Isaiah Allen, Martha M. Grimshaw and Rebecca P. Hathaway, during their natural lives ? If the trust should be held void, the parties who may have received any moneys under the trust, either as guardian for the two children of the testator, or in their own right, should be decreed to pay such moneys back to the executor, or the party who may be entitled thereto. The execution of the said trust had been acquiesced in by all parties until the claim was made by Julia G. Allen, in August, 1865. There was an accounting in 1862, and the acts of the executor should not be disturbed. The executor should be saved harmless. He has always acted in good faith. The trust is valid under the second subdivision of section 55, 1 Revised Statutes, 728.
I. This will creates an express trust, under section 55, 1 Revised Statutes, 728, second subdivision. And is a trust to lease lands to pay legacies, and to pay charges on land. The trustees are to pay the legacies or annuities, and to satisfy the mortgages on the lands in Hew York and at Enfield, Connecticut. The trust is two-fold: 1. To
II. The trust being valid and legal, the remainder or devise of the property to the wife and the children of the testator, is valid, and must be upheld, subject to the charges in favor of the legatees or annuitants. In this way the will can be sustained, and the intentions and wishes of the testator carried out, with the exception of the five annuities provided for under the trust. These annuitants are the same persons, except the wife and. children, as those provided for in the devise to the wife and children, excluding the wife and children. The will wTas made in Connecticut, where the testator resided, and he probably was not fully advised of our statutes on this subject.
Concurrence
[New York General Term,
November 2, 1868.
IV. The widow has elected to take her dower, instead of the devise. ,
V. In any view of this will, the plaintiff, the respondent, submits that the will is valid, and must be sustained, in whole or in part, and under it the executor has power to lease and receive the rents, and pay the mortgages, and when that is paid off, this power ceases, and the devisees take the rents, and are to pay the annuities, of $200 each, to Isaiah Allen, Martha M. Grimshaw and Eebecca P. Hathaway.
We concur with the decision below, that the trust was illegal and void, by reason of the limitation which the testator had imposed upon it, by the payment and satisfaction of the mortgages.
We also concur in the conclusion that the annuities to the father and sisters can be sustained as charges upon the real estate, notwithstanding the failure.of the trust.
These rulings were fully discussed by the justice before whom the case was tried, and it is unnecessary to add any thing further to his opinion on these points.
There may be some doubt whether other legacies or annuities might not also have have been sustained; but as those parties are not appellants here, and as the effect of the decision vests in the same parties all the income of the property, after the payment of the annuities charged on the estate, we do not deem it necessary or proper, on this appeal, to alter the decision in regard thereto.
Judgment affirmed.
Ingrahmn, Mullin and Daniels, Justices.]
Cases cited
- Harrison v. Harrison 42 Barb. 162 p. 614
- Coster v. Lorillard 14 Wend. 265 p. 615
- Darling v. Rogers & Sagory 22 Wend. 483 p. 615