Majority
Headnote
In 1853, 0., in contemplation of marriage, executed a trust deed of all her estate, real and personal, to certain trustees to hold the same during coverture or until her death, if she should “not survive her said coverture,” and apply the profits and income “ as received, and not by anticipation,” to her sole and separate use. In case of her death during coverture the deed provided that the trustees should convey and deliver all the trust estate remaining to such devisees and in such shares as she should by will direct, and in default of any such direction unto such person or persons “ being her heir or heirs-at-law as would be entitled to take the same by descent from her in case the same was land belonging to her, situate in the state of New York.” The contemplated marriage took place, and 0. died during coverture, leaving two children, the issue of the marriage, surviving her, also leaving a will, by which she gave all of her estate to the executors in trust, to apply the rents and profits to the maintenance of, or pay the same over to, her children in equal parts during their lives, with remainder, on the death of either, of his share, to his heirs and next of kin. In case of the death of either child during minority and without issue, the whole estate to be held in trust for the survivor during life, with remainder to his heirs and next of kin. In case of the death of both children during minority and without issue, the whole estate was given absolutely to designated beneficiaries. In an t action for the construction of the will, held, that the trust deed created a valid trust (1 R. S. 728, § 55, sub. 3), which neither the settlor alone, nor in conjunction with the trustees, could abrogate; that the power of dispo- , sition reserved in the deed was not an absolute power equivalent to absolute ownership (1 R. S. 733, § 85); that the will, therefore, was not an exercise by the testatrix of the "jus disponendi" incident of ownership, "* but simply the execution of a power of appointment, and therefore the question as to the validity of the trusts in the will was to be consideredThe question presented on this record is whether the trusts created by the will of Caroline M. Biggs, dated June 27, 1867, are valid within the law of perpetuities, or are void for remoteness. There can be no doubt that if the testatrix, at her death, was the absolute owner of the estate embraced in the trusts, they were valid both in respect of their purposes and. duration. In general character they are trusts to apply the rents, profits and income of the trust estate for the support and maintenance of two children of the testatrix during their lives, respectively, with remainder on the death of either, of the share of the one so dying, to his heirs and. next of kin, except that in case of the death of either child during minority and without issue, the whole estate is to
It is claimed, however, in behalf of the respondents, that the will of Mrs. Riggs was merely an execution of a power of appointment reserved in the trust deed of January 6,. 1853, made between the testatrix (then Caroline M. Field), of the first part, and George S. Riggs and others, of the second part, and not an exercise by her, as owner of the property, of the jus disponendi incident to ownership, and that the trusts created by the will were void under the statute of powers (1 R. S. 732), for the reason that they were limited upon the lives of persons not in being at the creation of the power, viz., upon the lives of the two children of the testatrix, who, though living when the will was made, were not born until long after
The trust deed was made in contemplation of the marriage of the settlor, Caroline M. Field, with George S.« Riggs. Its leading purposes were to secure to the settlor the income of her property for her own benefit during the marriage, free from the control, disposition, debts or incumFrances of her husband, and to secure the principal to her if she survived her husband, or in case she should die during coverture, to her appointees by will, or if she should make no appointment, to such persons as at her death would be her heirs under the laws of Few York, as if all the property was real estate. To secure these objects the settlor conveyed by the trust deed to the trustees, all her real and personal estate in trust, to receive and apply the rents, issues, profits and income to her use as received, without power of anticipation during her coverture, and in case she survived her coverture, to reconvey the property to her; but in case she should die during coverture, then the trustees are .directed to “ grant, assure and deliver all and whatever may remain of the hereby granted premises unto such devisee or devisees, in such share or proportion as she, the said party of the first part, by her last will and testament, may direct, which will and testament,” the instrument declares, “ she, the said party of the first part, is empowered, authorized and enabled to make, and by force of these presents, without any other or further reservation of power in that behalf,” etc. Then follows an
The trust deed created a. valid trust for the joint lives of Mrs. Biggs and her husband, or during coverture, if she should become discovert by the death of her husband before her death. It was one of the express trusts authorized by statute to receive the rents and profits of lands and apply them to the use of any person during the life of such person, or for a shorter period (1 R. S. 728, § 55, subd. 3), and suspended the power of alienation of the real estate and the absolute ownership of the personal property embraced in the trust, during the trust term, and although the trust might have terminated before the expiration of Mrs. Riggs’ life by the death of her husband in her lifetime, the suspension was, in legal effect, a suspension during a life. Heither she alone, or in conjunction with the trustees, coyld abrogate the trust. The statute makes every conveyance or other act of the trustees of an express trust in lands, in contravention of the trust, absolutely void, and, by analogy, the same rule governs trusts of personal property. (1 R. S. 730, § 65; Graff v. Bonnett, 31 N. Y. 9 ; Campbell v. Foster, 35 id. 361.) The will further provides, in a contingency, for the suspension of the power of alienation and the absolute ownership of at least one-half of the same property during the lives of the two children of the testatrix, making possible a suspension for three lives, if the trust created by the trust deed and the trusts created by the will are to be read as if incorporated in a single instrument, viz., the trust deed of 1853.
If Mrs. Biggs remained the absolute owner of the property after the execution of the trust deed, subject only to the estate of the trustees for her life, the trusts in the will would be valid. The reversion in the case supposed would be property which
The property transferred by the trust deed was mainly personal, but at the time of Mrs. Biggs’ death was mainly real, the trustees having, under the authority of the deed, invested the fund to a large extent in real estate situate in New York and Maryland. The remaindermen, in case the event happened upon which the remainder was limited, would take as purchasers. It was limited to persons who would not be entitled,. as of course, to the personal estate, and who might not be entitled to the real estate outside of New York, and whose title would not be subject to the tenancy by the curtesy of the . husband, as it would have been if the deed had not been made. (See Reading v. Rawsterne, 2 Ld. Raymond, 826) It is true that the remainder might be defeated by either of two events; the death of Mrs. Biggs before the death of her husband, or by her will made in execution of the power of appointment .and taking effect during his life, and it was in fact defeated in the latter way. But Mrs. Biggs could not during the life of her husband affect the limitation in remainder, except in the ■particular way pointed out, that is by an appointment by will. She could not defeat it by a conveyance inter vimos. The ■quality of absolute property, which enables an owner to dis
We think the validity of the suspension in the will off Mrs. Eiggs is to be determined by the test whether it would, be valid if it had been part of the limitation in the trust deed and had been inserted therein at the time the deed was executed: This seems to be the rule of our statute and it is the rule of the common law in respect to appointments under special, powers, .but not as to appointments under general or absolute powers. Mr. Jarman, in referring to this subject, says that, the reason that this test is not applicable to appointments-under general powers is that such powers are, in.point of alienation equivalent to actual ownership, but he adds: “ This.
The argument is urged that, conceding that the absolute power of alienation of the trust estate was suspended during the coverture of Mrs. Eiggs under the general rule, by reason of the disability imposed by the statute upon the trustees to do any act or make any conveyance in contravention of the trust, this disability was removed- as to property held in trust for married women, by the married woman’s act of 1848, as amended by the second section of the act of 1849. That section provides that any person who may hold any real or personal property as trustee for any married woman may, on her written request, convey the same to her, or the rents,, issues or profits thereof, for her “ sole and separate use and benefit,” but it is made a condition to such conveyance that the request shall be accompanied by a certificate of a justice of the Supreme Court that “ he has examined the condition
Earl, Finch and Beckham, JJ., concur; Daneorth and Gray, JJ., dissent on the ground that the fee did not pass-to the trustees by the deed. They took no greater estate under it than was sufficient for them to perform the duties-stated. The remainder, or reversion, remained in the grantor. The will was not in the execution of any power, and there is,, therefore, no contravention of the statute against unlawful perpetuities in the trust provisions of the will. Ruger, Ch. J.„ does not vote.
Judgment affirmed.
Cases cited
- Strong v. Skinner 4 Barb. 546 p. 164
- White v. Howard 46 N. Y. 144 p. 164
- In re Livingston 34 N. Y. 555 at 567 p. 164
- Bryan v. Knickerbacker 1 Barb. Ch. 409 p. 164, p. 173
- Graff v. Bonnett 31 N. Y. 9 p. 168
- Stevenson v. Lesley 70 N. Y. 512 p. 169