Riley v. Riley

• Decision Date: 20 May 1953
• Citation: 118 Cal.App.2d 11,256 P.2d 1056
• Parties: RILEY et al. v. RILEY. Civ. 4720.
• Court: California Court of Appeals Court of Appeals

Page 1056

256 P.2d 1056

118 Cal.App.2d 11

RILEY et al. v. RILEY.

Civ. 4720.

District Court of Appeal, Fourth District, California.

May 20, 1953.

Rehearing Denied June 9, 1953.

Hearing Denied July 15, 1953.

Alford P. Olmstead and John N. Hurtt, Los Angeles, for appellants.

Bertram H. Ross, Los Angeles, and Forgy, Reinhaus & Forgy, Santa Ana, for respondent.

MUSSELL, Justice.

Plaintiffs appeal from a judgment in favor of defendant in an action to impress a trust on a fractional interest in and to certain real and personal property, for the purpose of enforcing the provisions of an agreement to execute a will. The record contains an agreed statement on appeal from which it appears that 'the principal question on this appeal relates to the construction given by the lower court to the terms and provisions of a Property Settlement Agreement dated December 6, 1941, of a Declaration of Trust executed the same date in connection therewith, and of a subsequent agreement dated May 26, 1947; specifically the question is whether plaintiffs lost their rights created under said Property Settlement Agreement and said Declaration of Trust by their parents having executed said Agreement dated May 26, 1947.'

The material facts stated are these: Plaintiffs are the minor children of Chester J. Riley and Aileen S. Riley, who, on December 6, 1941, entered into a property settlement agreement providing in part as follows:

'1. The parties hereto agree to transfer, assign, convey and set over unto Charles P. Young all of the property, real, personal or mixed, as set forth and described in 'Exhibit A' hereto attached, the same to be held in trust, however, by said Charles P. Young in accordance with the terms and provisions of a certain Agreement and Declaration of Trust dated the 6 day of December, 1941, and executed concurrently with this agreement, a copy of which Agreement and Declaration of Trust is attached hereto marked 'Exhibit B' and by such reference thereto made a part hereof.

'10. Each party further agrees to execute a good and valid will and to at all times keep in force a good and valid will by the terms of which each will devise and bequeath unto the three children of the parties hereto, as herein named and set forth, an undivided one-third interest of his or her rights and interests under said Trust Agreement and Indenture, and each agrees further that in the event he or she should fail and neglect to make such a will, or if for any reason it should be determined or adjudicated that any will of theirs be invalid for any reason whatsoever, that then and in that event it is understood and agreed that this instrument shall be the terms hereof constitute a valid transfer, assignment and conveyance of an undivided one-third interest to said three children of the parties hereto in and to his or her interests and rights under said trust agreement, the same to take effect immediately upon the death of said party.'

In connection therewith and as part of the same transaction as the execution of said property settlement agreement, Charles P. Young, as trustee, executed a 'Declaration of Trust' which contained the following provisions:

'It is understood that this trust shall continue for a period of twenty (20) years from date hereof, or unless sooner terminated by reason of the full payment and satisfaction of all present indebtedness owing by the trustors and until the satisfaction and payment of any encumbrances now upon said property, or any extensions or renewals thereof, in the event of said payment said trust shall at said time terminate. Upon the termination of this trust as to all or any part of said trust property, said trust estate shall vest in and belong to the following persons:

'One-half (1/2) thereof to the Trustor Aileen S. Riley, or her heirs, successors or assigns, or any legatees or devisees that she may name in her last will and testament;

'The remaining one-half (1/2) to the trustor Chester J. Riley, or his heirs, successors or assigns, or any legatees or devisees that he may name in his last will and testament;

'It being understood that each of the Trustors hereby agree that upon the death of either of said trustors the children of the parties hereto shall succeed to an undivided one-third of the undivided one-half of each of the trustors.

'It is further understood irrespective of any of the other provisions of this trust, that the same may at any time be terminated upon the mutual consent and approval and agreement of each of the trustors herein.'

Pursuant to said property settlement agreement and declaration of trust, the real and personal property described in said declaration of trust was, on December 6, 1941, deeded and conveyed by Chester J. Riley and Aileen S. Riley to Charles P. Young, the trustee mentioned in said declaration of trust. Thereafter, on May 26, 1947, Chester J. Riley, Aileen S. Riley and Charles P. Young, as said trustee, executed an agreement relating to said trust. This agreement recited that the parties had composed their differences and desired to effect a final accounting concerning said trust, the termination and closing thereof and...