Evans v. First Nat. Bank of Stillwater

• Decision Date: 08 February 1944
• Docket Number: 31217.
• Citation: 146 P.2d 111,193 Okla. 665,1944 OK 53
• Parties: EVANS v. FIRST NAT. BANK OF STILLWATER.
• Court: Oklahoma Supreme Court

146 P.2d 111

193 Okla. 665, 1944 OK 53

EVANS v. FIRST NAT. BANK OF STILLWATER.

No. 31217.

Supreme Court of Oklahoma

February 8, 1944

Rehearing Denied Feb. 29, 1944.

Syllabus by the Court.

1. Where it is sought to show that a certain contract is void because one of the parties thereto was incompetent to enter into contractual relations of any kind, the test of the capacity to make a contract is whether the party had the ability to comprehend in a reasonable manner the nature and effect of the act in which he engaged and the business he transacted.

2. The title to the property in an express trust is in the trustee and such trustee in the administration of the trust is subject to the control and supervision of a court of equity and not of the probate court.

Appeal from District Court, Payne County; Henry W. Hoel, Judge.

Action by Charles M. Evans, executor of the estate of Alexander Evans, deceased, against the First National Bank of Stillwater, Okl., to invalidate trust agreement and to recover trust funds. From a judgment for defendant, the plaintiff appeals.

Affirmed.

Leon J York, of Edmonton, Alberta, Canada, and Walter Mathews, of Cushing, for plaintiff in error.

Raymond H. Moore, of Stillwater, for defendant in error.

CORN Chief Justice.

The original action was brought by Charles M. Evans, as guardian of Alexander Evans, incompetent, against the First National Bank of Stillwater, to annul a trust agreement which had previously been entered into between the said Alexander Evans and said bank, and to recover from the bank trust funds which it held under the trust agreement and which were being administered under its provisions.

The action is based upon the alleged incompetency of Evans to make a valid contract.

Evans died and the action was revived in the name of Charles M Evans, as administrator of the estate of Alexander Evans, deceased.

The trial of the case resulted in a judgment for the defendant Bank, and the plaintiff brings this appeal. The parties will continue to be referred to herein as plaintiff and defendant.

The record discloses that on March 11, 1940, Alexander Evans executed the trust agreement involved in this action. At that time he was 94 years of age. By the provisions of the instrument the sum of $1,325.95, which he had on deposit in the bank at the time, was transferred to the bank as trustee to be used and applied to the purposes of the trust; towit: The trustee was directed to pay to the daughter of the settlor, Margaret E. Stout, the sum of $30 per month for the remainder of the settlor's life, commencing with the month of March, 1940; said sum to be expended in providing room and board at the home of said daughter. The trustee was directed to pay at its discretion, or on the order of said daughter, such sums as either should deem necessary for personal needs of the settlor and for medicine and medical care. On the death of the settlor the trustee was directed to pay out of the trust fund remaining, not to exceed $500 for burial expenses and a headstone for the grave. If any of the trust fund remained unexpended after the payment of the above mentioned items, such unexpended balance was directed to be paid in equal shares to five living children of settlor, and the children of one deceased child, all of whom were named in the instrument. It was further provided that if any of his heirs instituted proceedings to contest the trust or to have settlor declared incompetent, such person or persons should not share in the distribution of the fund, but that it should be distributed to those not involved in such proceedings in equal shares. The trustee was further directed in its own discretion to employ and pay counsel to defend said trust from any action at law or in equity, or to defend against any action to set aside the trust or to declare settlor incompetent to make the said trust. The compensation of the trustee was fixed at the sum of $2.50 per month plus a charge of fifty cents for each check cashed on the trust fund.

On April 18, 1940, the County Court of Payne County appointed Charles M. Evans guardian of the person and estate of Alexander Evans, thereafter, on November 7, 1940, upon a trial de novo in District Court of said county, the court set aside said order and appointed Charles M. Evans and Margaret A. Stout as...