Righter v. Fid. Union Trust Co.

• Decision Date: 14 March 1932
• Citation: 159 A. 393
• Parties: RIGHTER et al. v. FIDELITY UNION TRUST CO. et al.
• Court: New Jersey Court of Chancery

159 A. 393

RIGHTER et al.

v. FIDELITY UNION TRUST CO. et al.

Court of Chancery of New Jersey.

March 14, 1932.

Syllabus by the Court.

Death duties on legacies, directed to be paid by executor, fall on the residuary estate. Suit by Addison A. Righter and another, as executors of the last will and testament of William S. Righter, deceased, against the Fidelity Union Trust Company and others. On final hearing.

Decree in accordance with opinion.

Hood, Lafferty & Campbell and L. Hood, all of Newark, for complainants.

William L. Brunyate, of Newark, for defendants Pauline C. Woodruff and Mary Woodruff.

Pitney, Hardin & Skinner and Edw. O. Stanley, Jr., all of Newark, for defendants Fidelity Union Trust Co. and Yale University.

George Whitefield Betts, Jr., and Reese D. Alsop, both of New York City, for defendants Addison Righter and Clara Righter Drake.

BACKES, Vice Chancellor.

By the sixth clause of his will, William S. Righter ordered his executors to pay the federal death tax and New Jersey transfer tax, and by codicil extended the direction to the payment of the taxes of any other state thus: "Sixth: I direct my executors to pay all Federal estate taxes which may be levied upon my estate and also all inheritance taxes payable to any state by any legatee or devisee under this will because of any legacy or devise by this will made."

Objection having been lodged with the executors by the residuary beneficiaries to the payment of the taxes out of the residuary estate, they ask instructions as to their duty. The challenge involves a consideration of the whole will.

After directing the executors to pay debts and to "divide my estate as soon after my demise as possible, without detriment to all interests," the will reads: "Second: I give and bequeath all the stocks and bonds of corporations, all government, state and municipal bonds and all real estate mortgages, with the bonds which said mortgages were given to secure, I own at the time of my demise, not otherwise hereinafter specially bequeathed, to the Fidelity Union Trust Company, of Newark, New Jersey, to be held by said Fidelity Union Trust Company of Newark as a trust, to collect the income therefrom, after deducting the legal fees, pay the balance of the income quarterly to Pauline C. Woodruff and Mary Woodruff, now living at 37 Chestnut Street, Newark, New Jersey, half to each as long as they may live, and after death of either, the entire net income to the survivor so long as she may live; at the death of the survivor of them, I give and bequeath the said funds and securities so held in trust, by said Fidelity Union Trust Company, to the Treasurer of Yale University of New Haven, Connecticut, to be used in the Sheffield Scientific School as the officers of that department think best; it is my desire that the said Fidelity Union Trust Company shall have full power to sell any securities, or foreclose any mortgage given to them in trust, and to reinvest the proceeds thereof in good and sufficient securities, but it is to make as few changes in the stocks, bonds, or mortgages delivered to it, as the safety of the trust will permit."

Testator's household furniture is then given to the Misses Woodruff, and a $500 bond to a cemetery company, and: "Fourth: I do hereby direct my executors should they find any of my stocks or bonds of any kind being used as collateral for loans I may have made, that they shall secure their release, by paying off the loans, by using other proceeds of my estate, and to assign, transfer and deliver the above stocks and bonds as bequeathed."

By the fifth clause, the testator's half interest in unimproved land held jointly or in common with his brother Addison is devised to him, and his hunting and fishing outfit is bequeathed to him. The sixth clause directs the payment of the death dues, and by the seventh two paintings are given to the city of Newark and a vase to a friend. An explanation for not providing for his invalid sister Emma, because she has plenty, is the eighth clause, and: "Ninth: I give, devise and bequeath all the rest, residue, and remainder of my estate, both real and personal, wheresoever situate and howsoever constituted, as follows, to wit: three-fourths parts thereof in equal shares to my brother and sisters, Addison A. Righter, Florence R. Allsopp and Clara Righter Drake, and one-fourth part thereof in equal shares to the said Pauline C. Woodruff and Mary Woodruff, provided * * *" (here follows gifts over to prevent lapses).

By a substituted codicil for the tenth clause, the complainants are appointed executors with "full power to sell any or all of my real estate, * * * should they deem it...