Odom v. Morgan

• Decision Date: 29 April 1919
• Docket Number: 411.
• Parties: ODOM v. MORGAN.
• Court: North Carolina Supreme Court

99 S.E. 195

177 N.C. 367

ODOM v. MORGAN.

No. 411.

Supreme Court of North Carolina

April 29, 1919

Appeal from Superior Court, Scotland County; Shaw, Judge.

Controversy without action by L. W. Odom against Edwin Morgan, executor and trustee under the will of Margaret L. Morgan. From judgment for defendant, plaintiff appeals. Affirmed.

Testator's widow, holding full title to his land under the will, and unfettered by any valid restriction on alienation, though testator attempted to create a trust for accumulation with the widow as trustee for the period of ten years, having devised to her grandson in trust with full power to sell and convey, the grandson can convey the title both of testator and his widow before expiration of the ten-year period for accumulation; the legal and equitable estates having merged in the widow.

From the facts submitted, it appears that Mark Morgan, owning a considerable estate, died in said county in January, 1916 leaving a last will and testament in which he devised and bequeathed the bulk of his property, including the lot in controversy, to his wife in trust for ten years under provisions hereinafter stated, and at the end of that time she was to own the estate in full. The will also conferred upon his wife the power, in her own last will and testament to designate a successor in the trusteeship, etc.; that the wife, Margaret Morgan, died in September, 1916, leaving a last will and testament, in which she devised all of her property coming to her under the will of her husband and otherwise, including said lot, to her grandson, Edwin M Morgan, in trust for himself and five other relations, to hold and manage the property in their behalf as an "active trust" and with full power to dispose of the same or any part thereof, the proceeds to be held in trust under the other provisions of her will, and said Edwin Morgan was also appointed and duly qualified as executor of the said will, etc.; that, in 1918, the said Edwin M. Morgan as executor and trustee of his grandmother's will, bargained in writing the lot in question to plaintiff, Leggett Odom, for $4,500 and the latter, having paid a part of the purchase money, declined to proceed further with the contract of purchase, on the alleged ground that the said trustee had, at present, no power under the wills in question to convey to plaintiff the title to said land, either of Mark Morgan or his wife, and the controversy is to determine the question whether said trustee and vendor is in a position to convey said titles and interests. The court, being of opinion that the title offered is a good one, entered judgment that plaintiff comply with his contract and complete the purchase, and plaintiff excepted and appealed.

Cox & Dunn, of Lauringburg, for appellant.

Walter H. Neal, of Laurinburg, for appellee.

HOKE J.

(after stating the facts as above). In so far as the interest of Margaret L. Morgan is concerned, her last will and testament expressly confers upon the trustee the power to sell any and all of the property devised or bequeathed to him and convey the same in fee to the purchaser, and the question presented will depend on whether, under the will of Mark Morgan, her predecessor in ownership, there were such limitations imposed upon the property as to prevent the making of a good title until ten years after his death, which time has not yet expired.

Recurring then to the provisions of the said will, after giving several legacies to be paid out of his insurance policies, in item 7 he expresses a desire that his estate should remain intact and in same condition as if he would manage it himself, for a period of 10 years after his death, and, with a view of making his purpose effective, in item 8 he wills the bulk of his property, real and personal, including the lot in controversy, to his wife, Margaret L. Morgan, in trust to control and manage the same, rent out the realty, and collect the rents thereof, invest and collect the interest on the money, vote the mill stock, etc., or dispose of the same, appropriate the entire income to her support, or so much of it as she considered necessary, and add the remainder to the body of his estate for a period of ten years. In another item he devises and bequeathes to his beloved wife all of his entire estate, of every kind and description, real, personal, and mixed as the same may stand at the end of the ten-year period, and in yet another he provides that his trustees are not to be held liable for any diminution in value of the property committed to their management. On these, the facts and portions of the will chiefly relevant,...