Eschen v. Steers

• Decision Date: 10 February 1926
• Docket Number: No. 6981.,6981.
• Citation: 10 F.2d 739
• Parties: ESCHEN v. STEERS.
• Court: U.S. Court of Appeals — Eighth Circuit

10 F.2d 739 (1926)

ESCHEN v. STEERS.

No. 6981.

Circuit Court of Appeals, Eighth Circuit.

February 10, 1926.

Ford W. Thompson, of St. Louis, Mo. (W. B. Thompson, of St. Louis, Mo., on the brief), for appellant.

Fred S. Hall, of St. Louis, Mo. (James E. Dame, of St. Louis, Mo., on the brief), for appellee.

Before KENYON and VAN VALKENBURGH, Circuit Judges, and YOUMANS, District Judge.

KENYON, Circuit Judge.

Appellant, Frances E. C. Eschen, was the daughter of the first wife of Oscar M. Steers. Appellee, Mary Madison Steers, administratrix, was his wife at the time of his death. Oscar M. Steers was a resident of Clayton, Mo., and died on the 9th day of October, 1923. About three hours before his death he wrote the following letter to the vice president of the First National Bank of Jefferson City, Mo., in which bank said Steers had over $10,000 on deposit:

"Clayton, Mo. 10/9/23.

"Mr. W. E. Zuendt, Jeff. City, Mo. — My dear Billy: Am writing you to say that my health has completely failed me, some sort of stomach trouble, causing an inflation with such pressure against my "diaphram" so that my breathing is cut off, have been in bed for a week and am propped up in a chair writing this.

"What I want to do Billy is to arrange my financial affairs some different so that my daughter, Mrs. J. H. Eschen, could get the money without any trouble of going through the courts; have decided to have ten thousand dollars transferred to her as saving account as of July 1, 1923, the book to be made in her name and sent to me, the interest of course to be credited to her. This of course with the understanding that should I need or want to use any of the money I could draw on the account signing her name per myself. Now this is my idea of the arrangement perhaps you could suggest a better plan. Whatever is done want to do as a precautionary measure to my daughter at the same time protect myself in case I should need the money. You know life is uncertain. The young may die and the old must die but do not want to give up control of my money. I hope you understand the situation and can fix the matter up so there will be no trouble for my daughter. I am sending my pass book, there will be some balance, which I will continue to carry with you. There is interest due up to July 1, 1923, this you can credit my account and transfer $10,000 to Mrs. J. H. Eschen account. I hope you will attend to this promptly and that a satisfactory arrangement can be made to the bank as well as myself.

"Hoping that you keep well and are prospering with kindest personal regards and best wishes, remembering me to the bunch.

"Sincerely, O. M. Steers "103 North Central Ave., Clayton, Mo.

"I neglected to say anything about giving you check for the amount I want transferred, but I have none of your regular forms out here. Fix one up and send it along and I will sign and return.

"O. M. S."

This was received by addressee the day after Steers' death.

Mrs. J. H. Eschen (Frances E. C. Eschen) claimed the $10,000 on the theory that the letter established a completed trust; the said Oscar M. Steers being created trustee and she beneficiary. Mary Madison Steers claimed the money as administratrix of the estate of Oscar M. Steers. Under this situation the First National Bank of Jefferson City asked a court of equity to require both claimants to interplead in this case. This was done. Mary Madison Steers, administratrix, filed motion to dismiss the amended interplea of Mrs. Eschen, and a like motion was filed on the part of Mrs. Eschen to the interplea of Mary Madison Steers. The motion of the administratrix was sustained by the court, and that of Mrs. Eschen overruled. The court in ruling on these motions held that the letter was not sufficient to constitute a gift causa mortis because of a lack of delivery of the property, either actual or constructive; also that the letter did not indicate an intention upon the part of decedent Steers to entirely and wholly part with the dominion over and custody of the money. In other words, the court found that the transaction was not sufficient to constitute either a gift causa mortis or a completed trust. Appellant frankly takes the position in her brief that the letter does not express an intention to make a gift of the $10,000 either inter vivos or causa mortis, but is sufficient to create a voluntary, express completed trust in her favor. Of course, it is apparent from the letter that it does not constitute a gift either inter vivos or causa mortis. Both parties so agree. The question for determination, therefore, is reduced to a simple one, viz. Is the letter sufficient to create a trust in favor of appellant in the $10,000 deposited in the bank?

Some general doctrines of the law of voluntary trusts are, we think, clearly determinative of the issue presented.

A voluntary trust gives to a donee the beneficial enjoyment of property, the legal title of which is in another designated as trustee. "When a person sui juris orally or in writing explicitly or impliedly declares that he holds personal property in præsenti for another, he thereby constitutes himself an express trustee." 1 Perry on Trusts (4th Ed.) p. 75, § 86.

No particular language is necessary to be used in creating a trust. It is sufficient if it satisfactorily indicates an intention to stamp upon a gift the character of a trust. The declaration, however, that party holds as trustee must be unequivocal. 26 R. C. L. p. 1180, § 18; In re Podhajsky's Estate (Podhajsky v. Bednar), 115 N. W. 590, 137 Iowa, 742; Connecticut River Sav. Bank v. Albee et al., 25 A. 487, 64 Vt. 571, 33 Am. St. Rep. 944; Elizabeth Wadd v. James B. Hazleton et al., etc., 33 N. E. 143, 137 N. Y. 215, 21 L. R. A. 693, 33 Am. St. Rep. 707.

The evidence, whether in writing or parol, to establish a completed express trust in personal property, must be clear and convincing — not vague, doubtful, and uncertain — and must show a clear intention to create such trust. William H. Harding v. St. Louis Union Trust Co., 276 Mo. 136, 207 S. W. 68; Allen & Another v. Withrow & Another, 3 S. Ct. 517, 110 U. S. 119, 28 L. Ed. 90; Blake v. Old Colony Life Ins. Co., 209 F. 309, 126 C. C. A. 235.

Intent to create such trust is not sufficient. The equitable title to the property must have passed to the cestui que trust, and the donor must have parted with dominion over such title, leaving nothing to be done to complete the transfer thereof. It is incompatible with the trust relationship that the donor, acting also as trustee, retain the legal estate and the beneficial enjoyment and dominion of the property, and the right of disposition thereof. Donee must have an enforceable, equitable title to create the relationship of cestui que trust, and there must be a complete establishment of the fiduciary relationship. O'Gorman et al. v. Jolley et al., 147 N. W. 78, 34 S. D. 26; Porter B. Godard v. Henry S. Conrad, 101 S. W. 1108, 125 Mo. App. 165, 172; Harding v. St. Louis Union Trust Co., 207 S. W. 68, 276 Mo. 136; Barnum v. Reed et al., 26 N. E. 572, 136 Ill. 388; Connecticut River Sav. Bank v. Albee, 25 A. 487, 64 Vt. 571, 33 Am. St. Rep. 944; People's Sav. Bank v. Webb et al., 42 A. 874, 21 R. I. 218; Lucretia E. Doan et al. v. Vestry of the Parish of the Ascension of Carroll County et al., 64 A. 314, 103 Md. 662, 7 L. R. A. (N. S.) 1119, 115 Am. St. Rep. 379; Rambo v. Pile et al., 69 A. 807, 220 Pa. 235; Melba Frank v. Morris A. Heimann, 258 S. W. 1000, 302 Mo. 334.

Equity will not interfere to perfect an imperfect or defective gift by declaring a trust which decedent failed to declare, nor will equity complete and enforce a mere intention or promise to create a trust. William H. Young, etc., v. George Young et al., 80 N. Y. 422, 36 Am. Rep. 634; Pennell v. Ennis, etc., 103 S. W. 147, 126 Mo. App. 355; 3 Pomeroy's Equity Jurisprudence (4th Ed.) § 997; Norway Sav. Bank v. Merriam et al., 33 A. 840, 88 Me. 146; In re Estate of Soulard, 43 S. W. 617, 141 Mo. 642; Northrip v. Burge, 164 S. W. 584, 255 Mo. 641, 655.

If the trust is completely established, donor has no power to revoke the same, unless such power is reserved in its creation. Harding v. Trust Co., 207 S. W. 68, 276 Mo. 136; Melba Frank v. Morris A. Heimann, 258 S. W. 1000, 302 Mo. 334; Gobeille v. Allison et al., 76 A. 354, 30 R. I. 525.

An attempted testamentary disposition of property not in the manner provided by law is ineffective. Dunn v. German-American Bank, 18 S. W. 1139, 109 Mo. 90, 100; Godard v. Conrad, 101 S. W. 1108, 125 Mo. App. 165, 172; Elizabeth Bieber's Administrator v. Boeckmann, 70 Mo. App. 503, 508; Basket v. Hassell, 2 S. Ct. 415, 107 U. S. 602, 610, 27 L. Ed. 500.

The Supreme Court of Missouri, in Re Estate of Soulard, 43 S. W. 617, 622, 141 Mo. 642, 664, in discussing the necessities of a trust in personal property says: "Three things, it has been said, must concur to raise a trust: `Sufficient words to create it, a definite subject, and a definite object; and to these requisites may be added another, viz., that the terms of the trust should be sufficiently declared.' Bispham's Eq. 65."

Viewing the letter in the light of these general legal propositions, it is clearly apparent that the project was one merely in contemplation, imperfect, and never completed. Steers sets forth to his friend the vice president of the bank a certain plan, and asks suggestions from him as to a better one. The postscript to the letter shows that he did not intend the same to complete the matter. There was something further to be done before even the arrangement which he was proposing could be fully carried out. Further, the letter shows no intention on the part of Mr. Steers to create a trust of which he was to be the trustee, and Mrs. Eschen the beneficiary. He expressly retained control of the money. True, the bank book was to be made in Mrs. Eschen's name showing $10,000 transferred to her as a savings account — not as a checking...