Simpkins v. Simpkins
Decision Date | 02 March 1942 |
Docket Number | 139/444. |
Citation | 24 A.2d 821,131 N.J.Eq. 227 |
Parties | SIMPKINS et al. v. SIMPKINS et al. |
Court | New Jersey Court of Chancery |
Syllabus by the Court.
1. Where there is a testamentary gift of a life estate and a gift of the remainder after the termination of the life estate, the gift in remainder will be deemed vested immediately in the absence of some controlling equity or some evidence in the will from which a different intent is implied.
2. The policy of the law requires that legacies in all cases should be deemed to be vested rather than contingent unless such a construction is clearly discordant with the intent of the testator.
3. This rule of construction is always observed where it is apparent from the terms of the will that a future gift is postponed merely to let in some other interest, such as a life estate. The future gift is vested, although the enjoyment is postponed.
4. True, this rule is not applicable where it is evident that the testator intended that the gift of the remainder should not vest until the death of the life tenant.
5. To permit acceleration, the precedent estate must be destroyed.
6. In the present case the release executed and delivered by the life beneficiary to the trustee was not an improvident act and effectually terminated her life interest in the trust. The complainants, as vested remaindermen, therefore become entitled to their interest in the trust estate.
Suit by Ernest Simpkins and others against Lizzie Simpkins and others to effectuate an immediate distribution to the complainants of the corpus of a testamentary trust.
Decree for the complainants.
Homan, Buchanan & Smith, of Trenton, for complainants.
Frank H. Lawton, of Trenton, for infant defendants.
JAYNE, Vice Chancellor.
The complainants in this cause seek, as the remaindermen, to effectuate an immediate distribution to them of the corpus of a testamentary trust in consequence of the termination of the precedent life estate therein. They invoke the so-called doctrine of acceleration.
The pertinent factual circumstances may be related succinctly. Louis Simpkins during his life sold and conveyed to his two sons, Ernest and Robert, a relatively large farm together with the live stock and farming implements, and in partial payment of the purchase price his sons executed and delivered to him two mortgages each in the principal sum of $10,000, appropriately encumbering the real and personal property. Louis Simpkins died, testate, on November 30, 1935. His two sons and his widow Lizzie Simpkins, among others of his family, survive. The testamentary disposition of the two mortgages is exhibited by the third paragraph of the testator's will, which in part reads as follows:
Pursuant to the intent of the testator, Robert Simpkins qualified as executor and trustee and he elected to administer the trust in accordance with the terms expressed in subdivision (b) of the third paragraph of the will.
On January 5, 1942, the widow, Lizzie Simpkins, executed and delivered to the trustee an instrument in writing by which she advisedly and for a valid consideration renounced and relinquished, immediately and unconditionally, all her right, title and interest and estate in this particular trust and forever exonerated and discharged the trustee of all claims and demands whatsoever in law or in equity in respect thereof.
In subdivision (c) of the same paragraph of his will, the testator declared: "(c) In the event that either of my said sons die before becoming entitled to the above named legacy, without leaving child, children or descendants, then I give, devise and bequeath that son's share to the survivor; and if either, or both of my said sons shall so die leaving child, children or descendants, then I hereby direct that the said child, children or descendants shall be entitled to the share to which his, her or their parent or parents would be entitled if living."
The complainant, Robert Simpkins, now has two minor children, one of whom was born since the death of the testator. Ernest Simpkins has no children. The interests of all the contingent substitutionary remaindermen are represented by a guardian ad litem.
The complainants now assert that by reason of the absolute extinguishment of the precedent life estate, an immediate distribution in conformity with the terms of the testator's will should be made of the principal to them as owners of the vested estate in remainder.
The guardian ad litem denies that the release operates to accelerate the date of distribution of the principal of the trust as alleged in the bill and avers that the gift to the sons constitutes a contingent remainder and that it was the apparent intention of the testator that distribution of the remainder was not to occur until the death of Lizzie Simpkins, at which time the corpus is to be divided among such of the testator's children as shall then be living and the issue of such of them as may be then deceased, in equal shares.
To permit acceleration the precedent estate must, of course, be destroyed. The release executed and presented by Mrs. Simpkins to the trustee terminated her beneficial life interest in the trust. Anthony v. Camden Safe, etc. Co., 106 N.J.Eq. 41, 149 A. 822; Bennett v. Fidelity Union Trust Co., 123 N.J.Eq. 198, 196 A. 375. The release here in evidence is apparently in form and substance identical with the releases of similar import considered in the cases last cited, and the determination in those cases must be accepted as authoritative on this point.
Moreover, Mrs. Simpkins testified that the terms of the release were intelligibly explained to her by her attorney, and that she executed the document for a valid consideration with full comprehension of its effect. It is not apparent that the release was an improvident act. The instrument is essentially a release evincing a transaction between the life beneficiary and the trustee. It does not purport to assign the life interest to the remaindermen. Cf. In re Nilsson, 112 N.J.Eq. 445, 164 A. 578; Schmieder v. Meyer, 97 N.J.Eq. 335, at page 338, 127 A. 162; Bennett v. Fidelity Union Trust Co., 122 N.J.Eq. 455, at page 458, 194 A. 449; Bennett v. Fidelity Union Trust Co., 123...
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