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Emerson v. Webster

12 N.Y.S. 788 Court N.Y. Gen. Term English

Decision Majority — Martin, J. · Dissent — Merwin, J.

Contents

Majority

p. 788
In re Read’s Estate. Emerson v. Webster.
(,Supreme Court, General Term, Fourth Department..
February, 1891.)

Headnote

Executors and Administrators—Discharge—Testamentary Trustee.
Testator gave all the residue of his estate to his executor (1) to pay debts; (3) to pay the income to A. for life; and (8) after the death of A. to pay over the whole of the estate to B. if she should then be of age; if not, when she (R.) should become of age, and to use the income for her benefit until that time; Held, that the functions of the executor, as such, and as testamentary trustee, were separate, and, after he had collected all claims and paid all debts and legacies, the executor was entitled to a final accounting and to a decree transferring the estate to him, as testamentary trustee. Merwin, J., dissenting.
Appeal from surrogate’s court, Jefferson county.
Accounting of Frederick Emerson, as executor of the last will and testament of Asahel Read, deceased. On the 11th day of June, 1881, Asahel Read made and executed his last will and testament, whereby, after bequeathing to Asahel Read, son of Hiram O.'Read, a certain legacy therein mentioned, he gave, bequeathed, and devised “all the rest, residue, and remainder of my real and personal estate to my friend Frederick Emerson, the executor of this my last will and testament hereinafter nominated, in trust for the payment of my just debts and funeral expenses, and then to pay the income from said estate to Mary A. Webster during her natural life, to be used by her for her own support and the care and support of Mary R. Webster; and from and immediately after the decease of the said Mary A. Webster I give and devise all my said estate to Mary R. Webster, if she at the time be of the age of twenty-one years; if not, when she shall be twenty-one years of age, and the said income to be used for her benefit until that time.” He then nominated and appointed Frederick Emerson as sole executor of his will, with full power, if he should deem it necessary, to sell and convey any or all of his real estate, upon such terms, and at such times, as he should think be,st. The will also, provided that if the executor should die before Mary R. Webster became 21 years of age, the surrogate should appoint some proper person to take his place. This will was duly admitted to probate by the surrogate of Jefferson county June 7, 1887. The appellant duly’qualified as such executor, and has since-acted as such. He made and filed an inventory, as required by law, published the regular'notice to creditors, collected the debts due the estate, and paid the funeral expenses, debts, and legacies. On the 20th day of January, 1890, the executor voluntarily filed his petition for a final accounting as. such. This proceeding was commenced by the issuing of a citation, upon the return of which the executor filed an account of his proceedings, as such, and asked to be discharged as executor, and that the balance of the estate in his hands as executor should be transferred to him as testamentary trustee-under said will. The surrogate denied his right to a final accounting and.
p. 789
discharge as executor, and held that the accounting was but an intermediate one. He also held that the offices of executor and trustee were co-existent and continuous, and that the executor should retain the estate in his hands as such until the death of Mary A. Webster, or until Mary R. Webster should become 21 years of age. He likewise refused to discharge the appellant as executor, or to decree the trust fund into his hands as trustee under said will. From this determination of the surrogate, the executor appeals.
Argued before Hardin, P. J., and Martin and Merwin, JJ.
Sam Child, for appellant. Joseph Atwell, for Mary A. Webster. J. C, McCartin, for Mary R. Webster.

The questions "involved on this appeal are dependent for their solution upon the true construction of the testator’s will. If the purpose of the testator, as shown by the language employed in his will, was to blend the functions and duties of the executor and trustee, so that they were inseparable, and were to run together from the death of the testator until the appellant’s final discharge, the decree appealed from was proper, and should be affirmed. If, however, the provisions of the will show that the testator contemplated a severance of the functions and duties of the executor from those of the trustee, then it follows that the decree was wrong, and should be reversed. After making certain bequests to Asahel Read, the testator by his will devised and bequeathed to the appellant all the rest and residue of his estate, real and personal, in trust (1) to pay his debts and funeral expenses; (2) to pay the income from the estate to Mary A. Webster during her natural life; and (3) upon her decease to pay over to Mary R, Webster the whole of said estate if she should be 21 years of age; if not,, when she became of age, and to use the income for her benefit until that time. That the testator intended to appoint the appellant a. testamentary trustee to carry out the provisions of- his will, as well as to constitute him the sole executor thereof, is-manifest. The will conferred upon him the dual character of executor and trustee As executor, it was his duty to take possession of the estate, collect the debts due the testator, pay his debts and funeral expenses, pay the legacy given by the will, and sell the real estate, it he should deem it necessary. These were his executorial duties. As trustee, he was required to keep the residue of the funds belonging to the estate invested, and to pay over the income derived therefrom to Mary A. Webster until her death; and if she died before Mary R. Webster became 21 years of age, then to appropriate the income thereof to her use until that time. Upon the death of Mary A. Webster and the majority of Mary R. Webster th« trust would end, and the appellant would be required, as testamentary trustee, to account to Mary R. Webster for the estate in his hands.

We think the will shows that the functions of the executor and the duties of the trustee were separate. They were not to be executed concurrently and continuously to the end. The duties of the appellant as executor preceded his duties as trustee. The former were to be performed before the latter began. The trust as executor was ended when the appellant had taken possession of the estate, paid the legacies, debts, and funeral expenses, and rendered an account of his trust as such to the surrogate. He was then entitled to hold the estate as a trustee under the will. As such testamentary trustee, it was his duty to dispose of the income, and ultimately of the corpus, of the estate, as directed by the will, and to account to his cestuis que trustent as such testamentary trustee. We think the learned surrogate should have stated a final account with the appellant, made a décree discharging him as executor, and directing a transfer of the estate in his hands as executor into liis hands as trustee, and awarded him such commissions as he would have been entitled to upon such an accounting and decree. This conclusion is, we think, fully sustained by the following authorities; Lay

Dissent

p. 790
v. Davidson, 95 N. Y. 263 ; In re Mason, 98 N. Y. 527 , 534; Phoenix v. Livingston, 101 N. Y. 451 , 5 N. E. Rep. 70 ; In re. Willets, 112 N. Y. 289 , 19 N. E. Rep. 690 ; In re Crawford, 113 N. Y. 560 , 21 N. E. Rep. 692 ; In re Wolfe's Estate, 5 N. Y. Supp. 634 .

It follows that the decree of the surrogate should be reversed, witli costs payable out of the fund. Decree reversed, with costs to the appellant, payable out of the estate.

Hardin, P. J., concurred.

(dissenting.) Within the rule laid down in Johnson v. Lawrence, 95 N. Y. 154 , I think this is not a case for the separation of the duties of executor and trustee. From the last clause of the will, it is apparent that the testator contemplated that the office of executor should exist till the final distribution. I therefore dissent.

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