Estates and Trusts Commons^™

Wills--Specific Bequest Of Capital Stock--Disposition Of Stock Dividends Declared Before Testator's Death, E. M. Deal

Michigan Law Review

In her will, testatrix made several specific gifts to Miss Dorothy Spencer, including "20 shares of stock of the Times-Picayune Publishing Company," the extent of her holding at the time the will was executed. Later, the company declared a 100 per cent stock dividend and issued testatrix a certificate for an additional 20 shares. When she died, testatrix had in her possession certificates for 40 shares of the corporation's stock. Ten legatees objected to a provisional account filed by her executor which listed the 40 shares as belonging to Dorothy Spencer, claiming that the additional shares should be converted into …

Future Interests--Effect On Contingent Remainders Of Widow-Life Tenant's Election To Take Against A Will, Niel Mckay S.Ed.

Michigan Law Review

Testator devised one half of the income from an undivided one-third interest in certain real estate to the defendant, his wife, and provided that on her death the undivided one-third interest was to go to his brother and sister, plaintiffs here, if living, otherwise to his children in a certain named order if living. The defendant, testator's widow, elected to take her statutory share against the will, and the county court decreed her a one-half interest in the undivided one third, the other one-half interest going to the plaintiffs. Plaintiffs, also having title to the other two thirds of the …

Co-Tenancy-Conveyance By Grantor To Himself And Another, Shubrick T. Kothe

Michigan Law Review

Decedent, owning land and personal property thereon, executed a deed purporting to convey to herself and her son a life estate in the property "as joint tenants during their joint lives and an absolute fee forever in the remainder to the survivor of them. . . " Held, the deed created a tenancy in common in both of them during their lives and an estate in fee to the survivor. Hass v. Hass, (Wis. 1946) 21 N.W. (2d) 398.

Charities-Words Necessary To Create A Valid Trust For Charitable Purposes, John S. Dobson S.Ed.

Michigan Law Review

Testatrix left a will in which she directed her executor, after paying certain specific bequests, to give the residue of her estate "to some worthy cause or institution." From a decree rejecting the contention of decedent's next of kin that this residuary gift was void for indefiniteness, the next of kin appeal, arguing that the word "worthy" is not synonymous with "charitable," and that, in view of this, the bequest should fail for uncertainty, because testatrix did not specify the particular institution which was to receive the benefit of her bounty. Held, the bequest is valid. This court feels …

Construction Of Private Instruments Where Adopted Children Are Concerned: Ii, J. Wesley Oler

Michigan Law Review

Thus far in the discussion the attempt has been to consider a number of common terms of general designation, such as "children," "issue," and "heirs," detached from other language with which they may be found and disassociated from the circumstances under which they may be used, with a view to estimating their intrinsic significance in resolving questions as to the effect of adoption upon the identification of persons designated by them. The examination from this point: of view could lead to the deduction that in themselves the particular terms of designation furnished varying degrees of assistance to the interpreter of …

Future Interests-Worthier Title Doctrine Applied To Remainder To Next Of Kin Where The Subject Matter Is Personalty, Margaret Groefsema S.Ed.

Michigan Law Review

The trustee bank petitioned for instructions as to the proper disposition of the remainder of a trust of personal property, the principal of which amounted to some $29,000 upon the life beneficiary's death in 1942. The donor had provided for a life estate in the income, the principal to go to the settler's statutory next of kin under the laws of intestacy of the state of Massachusetts in default of the exercise by the settler of a reserved power of appointment. The court, having held that a will which Nicolls, the settler, had executed in favor of various friends of …

Future Interests-Acceleration Of Vested Remainders Subject To Complete Defeasance, Allen C. Holmes

Michigan Law Review

In 1938 the defendant, grantor, executed a deed by which she purported to vest a remainder in her son, the plaintiff herein, subject to a life estate in herself and. in her husband should he survive her. The deed further provided that should her son die before the survivor of her husband and herself, then the property was to pass share and share alike to the son's then living heirs. The grantor survived her husband. Shortly after his death she conveyed her life estate to her son for the express purpose of destroying it through merger with the remainder vested …

Eminent Domain - Disposition Of Award When Land Is Subject To Life Estate And Remainder, Mary Jane Morris

Michigan Law Review

Testator devised property to his adopted daughter for life and remainder to her children, but should she leave no children at her death, then the estate was to go to a named charity. The United States took title to this property and paid the compensation into court. The life tenant and one of the five children filed a motion that the life tenant be permitted to withdraw the funds arising from the condemnation for the purpose of having them immediately reinvested in other real estate and/or government securities. This motion was approved by the guardian ad litem for the one …

Key Problems In The Apportionment Of Increase Between Successive Interests In Personalty, Erwin Esser Nemmers

Michigan Law Review

It has been said with some amount of truth that "Perhaps no other question in the law of future interests has called forth such a voluminous literature as the question of the allocation of dividends and the other accruing benefits as between the life tenant and the remainderman of shares of corporate stock."

The present writer's purpose in adding to the material on the subject is to show the relation to the case law of the rules set forth in the Restatement of Trusts and the Uniform Principal and Income Act. While difficult problems of apportionment arise in regard to …

Wills - Incorporation Of Deed By Reference - Construction

Michigan Law Review

The sixth clause of testator's duly executed will was as follows: "I have already deeded to my niece, Alta J. Pullman, the southeast quarter (SE¾) of section eight (8), township twenty-four (24), north, range four (4), east of the 6th P. M. in Cuming county, Nebraska, and for that reason I do not devise any real estate to her in this Will." About thirteen months prior to the execution of this will, testator and his wife executed a deed conveying this tract of land to Alta J. Pullman. The deed was never delivered, and was not executed in accordance with …

Revocation Of Wills By Subsequent Change In The Condition Or Circumstances Of The Testator, Elizabeth Durfee

Michigan Law Review

Among the oldest rules in the law of wills are those by which a will is held to be revoked by implication by certain changes in the circumstances of the testator. The purpose of this paper is to investigate these rules. Special reference will be made to statutes, both those which deal generally with the subject and those which provide specifically for the effect of particular events, such as marriage; no attempt will be made, however to analyze the latter type of statute exhaustively. By way of introduction, a brief historical survey of the doctrine should be made.

Annuities - Satisfaction Of Prior Deficiencies From Income Surplusages Of Subsequent Years, Edward H. Adams

Michigan Law Review

Testatrix left her estate in trust for the purpose of paying certain sums of money annually to named beneficiaries. In a codicil to her will, she provided that in case there was insufficient income to meet expenses and pay all annuities stated, certain of the beneficiaries were to be preferred. Deficiencies occurred so that all sums were not paid, but subsequently there was surplus income which the trustees desired to apply to the prior deficiencies. Held, one justice dissenting, that the surplus after paying the annuities for the present year could be applied to the deficiencies which had occurred …

Adoption -Trusts-Wills- Adopted Child's Right To Take Under A Trust For "Issue", Michigan Law Review

Michigan Law Review

The settlor established a trust with himself, his wife, and his four children as beneficiaries. Under the trust deed the property was to vest in the "lawful issue" of the settlor's children on the death of his last surviving child. Held, that the term "lawful issue" included the plaintiff (an adopted child of settlor's daughter). Walker v. Obrien, (C. C. A. 9th, 1940) 115 F. (2d) 956, cert. den. (U.S. 1941) 61 S. Ct. 829.

Wills - Provisions For Construction Of The Will By Umpire Named By Testator, Alfred I. Rothman

Michigan Law Review

Testatrix created a trust and bequeathed one-fifth of the income to her son W and to S, his wife, with a proviso that if S survived her husband such income should not be paid to her in case she remarried. S divorced Wand remarried. Under a clause in the will giving them the power to determine with finality any question as to the construction or administration of the will, the executors and trustees construed the will to mean that S was not to receive any further share of the income, that testatrix would consider the divorce and remarriage during …

Wills - Construction - Limitation Of Defeasance Clause, Herbert R. Whiting

Michigan Law Review

Testatrix died leaving as her only heirs at law and next of kin a son, Thomas, and a grandaughter, Malinda, to whom she devised her estate in approximately equal shares. At the time she executed her will Thomas was twenty-two years of age and unmarried and Malinda was eleven. The principal case turns on the construction of a clause in her will, devising a parcel of land to Malinda, which reads as follows: "I give and bequeath ... the same to the said Malinda McK. Young and her children but if the said Malinda McK. Young shall die before she …

Trusts - Power Of Settlor-Beneficiary To Terminate Spendthrift Trust, Roy L. Rogers

Michigan Law Review

The plaintiff established a trust fund, the income from which was to be paid to herself for life, remainder as she should appoint by will or in default of appointment to her next of kin. The trust instrument contained spendthrift provisions, and an express provision against revocation. Subsequently the value of the corpus declined, income dwindled to practically nothing, and plaintiff became practically destitute. Held, the trust, failing to accomplish its purpose, may be terminated. Rehr v. Fidelity-Philadelphia Trust Co., 37 Pa. D. & C. 324 (1939).

Trusts-Liability Of Life Tenant And Remainderman For Carrying Charges On Unproductive Property, James D. Ritchie

Michigan Law Review

Testator put certain property, highly productive at the time of his death, in trust, income to his grandaughter for life, remainder over. Subsequently part of the property became unproductive, so that if the income from the rest should have fallen below three per cent and taxes were paid from income, the life tenant would have received nothing. The will authorized the trustee to sell when expedient; although using due diligence, the trustee had not yet sold. In a contest between the life tenant and remainderman, held, taxes accrued since the property became unproductive are payable from principal, not income. …

Joint Tenancy - Right To Transfer By One Party - Right Of Survivorship, John H. Pickering

Michigan Law Review

In two recent cases the Supreme Court of Michigan has had occasion to pass upon the doctrine of survivorship in joint tenancies. In one case the deed ran to father and son as joint tenants and contained a covenant that neither would sell without the written consent of the other. The father conveyed his interest without the son's consent and died. The court held that the deed created a joint tenancy, that since the restrictive covenant was void as a restraint on alienation and repugnant to the grant, the joint tenancy was severed by the father's conveyance, and therefore the …

Wills- Partial Intestacy-Effect Of Attempt To Disinherit An Heir Or To Limit His Share, James D. Ritchie

Michigan Law Review

Where testator bequeathed to one of his brothers "the sum of five dollars, this amount to be in full for any and all bequests I would leave him as a brother or heir," and certain property passed by intestate succession because of a void residuary clause, held, the share of the brother, an heir, was restricted to five dollars. LaMere v. Jackson, 288 Mich. 99, 284 N. W. 659 (1939).

Executors And Administrators - Effect Of Testamentary Provisions On Executors' Fees, Michigan Law Review

Michigan Law Review

At the early English law an executor was entitled to the surplus of the personal estate after the payment of debts and legacies, but this practice nowhere prevails today. At common law the office of executor was regarded as honorary, to be performed without compensation unless the will expressly provided for compensation. It is doubtful if the common-law rule ever obtained in this country, where from a very early time it has been universally considered that executors are normally entitled to reasonable compensation not only to reward them for their time, labor and trouble, but also for the responsibility incurred …

Appeal And Error - The Administrator As A Party Aggrieved By Probate Of Will, John H. Uhl

Michigan Law Review

In an action to prove the existence of a lost will executed by the deceased, judgment was rendered setting up the lost will and revoking the letters of administration which had been issued. The administrator appealed from this order, and the appellee moved to dismiss the appeal on the ground that the administrator had no such interest as entitled him to review. The governing statute permitted appeal by "any party aggrieved by any final order, judgment, or decree." Held, that the administrator who has qualified as such was entitled to appeal under the statute, as the party aggrieved by …

Wills - Construction - Meaning Of "Issue" In Testamentary Gifts, Daniel Hodgman

Michigan Law Review

Two recent cases illustrate a trend in the judicial construction of the word "issue" in wills which seems to be divergent from the view expressed in the older cases.

In Re Thompson's Estate there was a bequest to A and B for their lives and at the death of the survivor "one half thereof to the living issue of each daughter, if there then be such issue of each, whether of the first or succeeding generations." At the death of the survivor there were six children of A and two grandchildren, issue of living children, and there were two children …

Banks And Banking - Trusts - Special Deposits - Agreement Between Depositor And Bank, Robert E. Sipes

Michigan Law Review

During a period of widespread bank failures, plaintiff corporation ceased depositing its funds with the defendant bank. To maintain the public's impression that the plaintiff was a regular customer of the bank, an agreement was entered into by the bank and the plaintiff whereby the bank was appointed "agent" of the plaintiff to collect and remit promptly money due plaintiff. Branch offices of the plaintiff deposited money under this agreement to be transmitted to the plaintiff. When the bank failed with some of this money still in its hands, plaintiff sought to be allowed a preferred claim. Held, the …

The Widow's Right Of Election In The Estate Of Her Husband, Elbridge D. Phelps

Michigan Law Review

Before launching into the discussion proper, and in order to avoid confusion and misunderstanding later on, it is deemed wise at once to mark out boundaries within which it is proposed to confine the treatment of the subject here involved. Accordingly, in that which follows, attention will be centered largely on the necessity for election by a widow under modern statutes which allow her to take against her husband's will, and on the effects of her election or non-election upon her interest in her husband's estate. In so far as a surviving husband has identical rights, they will be adverted …

Powers - Rule Against Perpetuities - Disposition Of Property Where Appointment Is Invalid - Enforcement Of Contract To Appoint, James H. Kilbourne

Michigan Law Review

The donor of the power bequeathed a fund to trustees to pay the income to the donee for the donee's life, and then to convey to such persons as the donee appointed by will. The donee appointed by will to trustees to pay the income to the donee's daughter for life; and then to convey the remainder to the daughter's surviving children and the surviving lawful descendants of any deceased child of the daughter, upon the death of the last surviving child or twenty-one years after the death of the last surviving child living at the donee's death, whichever event …

Conditional Wills, Alvin E. Evans

Michigan Law Review

The discovery of what the language of a testator means is a constant duty of the courts. The task in the case of wills conditional in form frequently is to inquire whether the conditional language is merely formal and used by way of inducement or is intended to be taken literally. Clear cut and uniformly dependable tests as guides to such inquiry do not exist.

Powers - Execution By A Residuary Clause, Herman J. Bloom

Michigan Law Review

A testator devised all his property in trust; he instructed the trustees to purchase a residence for his wife and gave her the general power to appoint by will, both with respect to this proposed residence and with respect to a sum of money from the testator's estate, the aggregate amount being $20,000. The trustee purchased a 25-foot lot and the wife purchased 8 1/ 3 feet of an adjoining lot. At the request of the wife, the trustees erected a two family residence, the main part of the building being on the 25-foot lot, but the eaves and one …

Wills - Charitable Trusts - Doctrine Of Approximation - Accumulation, Malcolm L. Denise

Michigan Law Review

By his will of 1915 the testator, after providing for several legacies, left the residue of his estate to trustees, to expend the income therefrom in establishing and providing a home for the worthy aged poor of Waterbury, in the memory of his deceased wife. The income was not sufficient adequately to carry out this direction, the fund amounting to around $30,000 at the time of testator's death in 1920, and the trustees petitioned the court for instructions. Held, there being a general charitable intent, the fund should be administered cy pres by the court to relieve the aged …

Wills - Conveyance By Testator Of Land Devised As Implied Revocation

Michigan Law Review

Testator devised "all the property, real, personal or mixed of which I die seised" to defendant. Subsequently, he and his wife conveyed a portion of the land he then owned to the defendant. Defendant later reconveyed to the testator. Testator never republished his will, nor altered it in any way. Plaintiffs are his heirs at law and insist that as to these lands the will was revoked and the testator died intestate. Held, there was no revocation here. The land in question passed under the devise to the defendant as after-acquired property, the language of the general devise being …

Executors And Administrators-Executor's ''Right Of Retainer" Of Distributive Share Of Estate Where Distributee Is Indebted To Decedent

Michigan Law Review

A question little noticed by legal writers, but of utmost importance in the administration and distribution of decedents' estates, is the universally recognized right of executors and administrators of the estates to retain a distributive share as satisfaction in whole or in part for a debt due from the distributee to the estate of the decedent. It should be remarked at the outset that the term "retainer" as here used is itself a misnomer; properly speaking, that term refers to the right of an executor, who is himself a creditor of the estate, to retain from its funds in his …