Lines v. Lines

• Decision Date: 04 May 1891
• Docket Number: 351
• Parties: J. P. LINES v. W. E. LINES ET AL
• Court: Pennsylvania Supreme Court

21 A. 809

142 Pa. 149

J. P. LINES v. W. E. LINES ET AL

No. 351

Supreme Court of Pennsylvania

May 4, 1891

Argued March 12, 1891

APPEAL BY PLAINTIFF FROM THE COURT OF COMMON PLEAS OF NORTHAMPTON COUNTY.

No. 351 January Term 1891, Sup. Ct.; court below, No. 2 October Term 1890, C.P. in Equity.

On August 21, 1890, Jane P. Lines filed a bill in equity against William E. Lines, the Union Trust Company of New York, and others, averring that certain deeds of trust made by Jesse Lines, deceased, to William E. Lines and the Union Trust Company, respectively, wherein various persons named as defendants were designated as beneficiaries, were of a testamentary character, and were made with the express intent and purpose of defrauding the plaintiff, the wife of said Jesse Lines, of her lawful share of his estate as his widow in case she survived him; that Jesse Lines died, testate, on July 22, 1890, and that on July 26th the plaintiff made her election not to take under his will but under the intestate law; praying for a decree that said trust deeds were testamentary and the assets therein mentioned continued to be the property of Jesse Lines, and on his death vested in his executors; for a decree that said trust deeds were null and void as against the plaintiff; for a decree that said assets be delivered to said executors for administration; for an injunction to restrain transfers thereof; and for general relief.

The bill was taken pro confesso against the Union Trust Company. The other defendants having answered and issue having been joined, Mr. William C. Shipman was appointed examiner and master.

On January 19, 1891, the master reported, finding, inter alia the following facts:

Jesse Lines died at his domicile in the city of Easton on July 22 1890, in the 82d year of his age, leaving to survive him his widow, the plaintiff, but no legitimate children. William E. Lines, one of the defendants, was his putative son. The decedent left a will dated February 4, 1880, with two codicils, dated December 22, 1882, and June 24, 1885, respectively. The will and codicils were duly admitted to probate on July 26, 1890, by the register of wills of Northampton county, who, the same day, granted letters testamentary thereon to William E. Lines and four other persons, named therein as executors. Three of the executors were afterwards discharged by the Orphans' Court on their own petition. By the terms of the will, the widow was to receive $750 annually for life, to be increased to $1,000 annually, if in the judgment of the executors the latter amount should be necessary for her support; and also, the testator's furniture, for life. William E. Lines and certain other persons, defendants in this case, and nephews and nieces of the testator, were made residuary legatees, William E. Lines to receive one half of the residuary estate, and the other half to go to said nephews and nieces. On July 26, 1890, the plaintiff filed her election not to take under the terms of the will, and several days later notified the executors thereof.

On May 30, 1883, Jesse Lines had executed and delivered to John Brown a deed of trust, and on December 14, 1886, executed and delivered a supplement thereto. The trust thus created embraced the stocks and bonds in controversy in this proceeding, and was for the benefit of William E. Lines and the nephews and nieces aforesaid, its terms and provisions being substantially to the same effect as those of the deeds now in question. Early in 1887, however, John Brown renounced the trust.

On May 6, 1887, in the city of New York, Jesse Lines executed and delivered to the Union Trust Company of New York a deed transferring to the trust company certain corporate stocks and bonds of the aggregate amount of $146,100, upon trusts specified in the deed as follows:

"First. To take the custody and care of said property and collect interest and dividends thereon.

"Second. To pay over such interest and dividends to first party for and during his natural life.

"Third. On the death of the first party, to divide the said property into two equal parts, and to transfer and deliver unto his putative son, William E. Lines, one of the said parts, and in case his putative son shall not be living at the time of his decease to transfer and deliver the same to such person or persons as his said putative son shall have appointed by instrument in the nature of a last will and testament, and in default of such appointment, to the persons who under the law of the state of Pennsylvania would be entitled to the beneficial interest in personal property of his said putative son as heirs or next of kin, and to divide the other of said two equal parts into fourteen equal parts, and to transfer and deliver one of such fourteen equal parts to each of the ten children of his deceased sister, Mary Fairchild, the said ten children being named as follows: . . . .; and to transfer and deliver one of such fourteen equal parts to each of the four children of his brother, John Lines, the said four children being named as follows: . . .

"Fourth. In case, at the time of his decease, any of his said nephews or nieces shall not be living, to divide the part of said deceased nephew or niece into two equal parts, and to transfer and deliver one of such two equal parts to his said putative son, or in case his said putative son is not living at the time of his decease, to transfer and deliver one of such two equal parts to the appointee, or heirs or next of kin of his said putative son, in the manner as is provided in the foregoing third subdivision of this instrument; and to divide the other of such two equal parts into as many parts as there shall be of said nephews and nieces living at the time of his decease, and to transfer and deliver one of such parts to each of said nephews and nieces living at the time of his decease.

"Second party is entitled to just and reasonable compensation in the execution of this trust, and to the reimbursement of all charges and expenses made or incurred, to be deducted from the trust or assigned property. First party reserves the right and power, by an instrument in writing to be delivered to second party to alter, change, modify or revoke all disposition and direction as to transfer and dispositions made and to be made of said property after the decease of first party."

Appended to the deed was a supplemental agreement, providing that the charges of the trustee for collecting and disbursing income should be two per cent thereof, "and on transferring the principal, the legal commission allowed to executors and administrators for receiving and paying out money."

The securities mentioned in this deed were delivered to the trustee in the city and state of New York. In that state a married woman has no claim and possesses no title or interest in her husband's personal estate during his lifetime, and she has no right or privilege of taking his personal estate against his last will and testament. The master could not find as a fact that Jesse Lines carried said securities out of the commonwealth of Pennsylvania, to bring them under the operation of the laws of the state of New York. They were still in the possession of the trust company at the death of Jesse Lines. One half of them were transferred afterward to the beneficiaries named in the deed of trust, and the remaining one half remained in the possession of said company, which was restrained by an injunction of the proper court in the state of New York from transferring the said remainder to said beneficiaries.

On June 22, 1887, Jesse Lines executed and delivered to William E. Lines a deed of trust of certain other stocks and bonds, upon trusts declared as follows:

"To have and to hold all of said shares of stock unto the said William E. Lines, his executors, administrators and assigns upon the following trusts, to wit: In trust to divide the same into twenty-eight equal shares, of which he shall hold fourteen shares for the use of my putative son, the said William E. Lines, and of the remaining fourteen shares he shall hold ten, to wit, one each for the use of the ten children of my deceased sister, Mary Fairchild, named respectively: . . . And the remaining four shares he shall hold for the use of my brother, John Lines. During my life the said William E. Lines shall pay over to me and for my use, at the times when he may receive the same, all the dividends or other income which he may receive upon and from all of the above described stocks, and he may deliver the shares thereof above mentioned unto the several beneficiaries above named, at such time or times as he in his unfettered discretion shall think fit. And should he in the exercise of his discretion determine to hold the same during my life and thereafter, he may after my death pay the income thereof to the said beneficiaries respectively, and in their several proportions, until such times as he may see fit to transfer the principal of the said shares to the persons entitled thereto respectively. The four shares of the said stocks to be held in trust for my brother, John Lines, shall, when received by the said John Lines, be held by him in trust for his four children, one share to each, to wit: . . . ., and he shall pay the same over to his said children at his discretion, or he may pay the income of any share or shares to any one or more of the said children, as he may think proper, annually, until such time as he shall see fit to pay over the principal thereof to the said beneficiaries. In case any of the beneficiaries hereinbefore mentioned shall die before the delivery to them respectively of the proper share or shares of the said stocks, without leaving any lawful issue or lineal descendants, the said trustee shall...