Sinift v. Sinift

• Decision Date: 24 September 1940
• Docket Number: 44325.
• Parties: SINIFT et al. v. SINIFT.
• Court: Iowa Supreme Court

293 N.W. 841

229 Iowa 56

SINIFT et al. v. SINIFT.

No. 44325.

Supreme Court of Iowa.

September 24, 1940

Appeal from District Court, Lucas County; Elmer K. Daugherty, Judge.

A suit in equity to determine the rights of the parties in and to certain certificates of deposits and bonds listed in the inventory of the executor of the estate and of the last will of John Sinift. The plaintiffs and the defendant have appealed. The former will be designated as appellees, and the latter, as appellant. The trial court granted plaintiffs the relief prayed for as to all of the property excepting a one half interest in certain government bonds, of the par value of $15,500.

Affirmed on appeal of defendant. Reversed on appeal of plaintiffs.

Superseding opinion in 284 N.W. 91.

O. M Slaymaker, R. E. Killmar, and D. D. Slaymaker, all of Osceola, for appellant.

G. C Stuart and A. V. Hass, both of Chariton, for appellees.

Truman S. Stevens, of Des Moines, W. W. Bulman, of Chariton, and H J. Melton and D. M. Kelleher, both of Fort Dodge, amici curiae .

BLISS Justice.

This cause was submitted on rehearing from an opinion and judgment reported in 284 N.W. 91.In addition to the arguments on the original submission, we have presented to us several hundred pages of additional argument on the petition for rehearing and on the resubmission, including arguments by able amici curiae on behalf of the appellees. We have reaffirmed our conclusion as set out in the first opinion but substitute this opinion in its stead.

John Sinift, sometimes referred to as John W. Sinift, at the age of about seventy-eight years, died testate in Warren County, on March 29, 1935, leaving the defendant, Nan B. Sinift, about three years his junior in age, as his surviving widow. No children were born of this marriage. The plaintiffs, Harvey Sinift, Elsworth Sinift and Hettie Moore, are the brothers and sister, and Belle Tull is a niece, of the testator. They are his only heirs. The testator executed his will on March 29, 1932, and it was probated in the District Court of Warren County on April 29, 1935. Norman F. Baker, a banker, friend, and business adviser of the testator and his wife, drew the will, and qualified as the executor named therein. As such executor, he filed an inventory, listing as the joint property, and assets of the estate, the following property: 525.71 acres of unincumbered farm land, and a small tract of ground, about nine rods by nine rods, owned by the testator and wife jointly; a joint, equal interest with a tenant in certain farm equipment and livestock; a balance of $3,953.35 in the checking account of the testator in the Farmers & Miners Bank of Lucas, Iowa; a book account of $654.72 owing by a partnership of the testator and a tenant; a certificate showing a time deposit at 2% interest in the National Bank & Trust Co. of Chariton, on December 10, 1934, by " John or Nan Sinift" and payable to them or their assigns, of $16,000; a certificate showing a time deposit at 2% in the said Farmers & Miners Bank, on December 10, 1934, by " John Sinift or Nan B. Sinift" of $14,000, payable to the order of " either or survivor" ; Lucas County, Iowa, primary road bonds, of the par value of $6,000, in the name of " John Sinift and Nan B. Sinift" ; U.S. 3 1/4 %, Treasury bonds, 1943-45, par value of $2,200, in the name of " John Sinift or Nan B. Sinift" ; U.S. 2 7/8 % Treasury bonds, 1955-60, par value $6,500, in the name of " John Sinift and Nan B. Sinift or the survivor" ; U.S. 4 1/4 %, 4th Liberty Loan bonds, par value $2,000, in the name of " John Sinift and Nan B. Sinift, or the survivor" ; U.S. 4 1/4 %, 4th Liberty Loan bonds, par value $1,000, in the name of " John Sinift or Nan B. Sinift, or the survivor" ; U.S. 4 1/4 %, 4th Liberty Loan bonds, par value $5,000, in the name of " Nan B. Sinift and John Sinift, or the survivor" ; U.S. 3% Treasury bonds, 1951-55, par value $7,000, in the name of " John Sinift or Nan B. Sinift, or the survivor" ; U.S. 3% Treasury bonds, 1946-48, par value $5,000, in the name of " John Sinift or Nan B. Sinift, or survivor; " U.S. 4% Treasury bonds, 1944-54, par value $2,000, in the name of " John Sinift and Nan B. Sinift, or the survivor" ; and U.S. 4% Treasury bonds, 1944-54, par value $6,000, in the name of " John Sinift or Nan B. Sinift, or the survivor" . Later he reported the receipt of a dividend of $2,466.24 from the receiver of the Peoples Bank of Lacona, Iowa. The executor listed no debts.

By his will, John Sinift disposed of all of his property of every kind, and directed his executor to pay all debts and obligations of every kind. To his wife he gave absolutely all household furnishings and stores pertaining to the homestead. He also provided in his will as follows:

" Par. 3. To my said wife Nan B. Sinift, I give the entire and the whole income of all of my said property during her natural life time. To be by her kept or used in any manner that she may see fit, excepting only that out of the income of my said property there shall be paid the property tax assessed against the same.

Par. 4. I give and devise to my said wife Nan B. Sinift, full power of management and control of my entire estate, to invest and reinvest the same, and to vary the securities and other personal property belonging to my estate or which from time to time may be acquired, and I further authorize and empower my said wife Nan B. Sinift to sell, transfer and convey any of my said securities or other personal property for the purpose of reinvestment.

Par. 5. I direct that no part of my real estate be sold during the life of my said wife.

Par. 6. At the time of the death of my said wife Nan B. Sinift, my property shall then be divided, as follows: One half of the same to the estate of my said wife Nan B. Sinift, and the other one-half to my legal heirs."

There is no controversy in this suit over any of the property inventoried, except the road bonds, the government bonds, and the two certificates of deposit. In their petition the plaintiffs allege the matters of fact set out above, and aver that it was the intention of the testator that upon the death of the defendant the plaintiffs should be entitled to one half of the property inventoried or to which it had been changed, but that the defendant is claiming absolutely, in her own right, and not under the will, the government bonds, the certificates of deposits and one half of the road bonds.

The plaintiffs pray that the court decree that all of the property inventoried is the property of the estate, and that the defendant holds no part of it as absolute owner, but only as a trustee during her life, for the plaintiffs and the heirs or estate of the defendant, and that the court decree that John Sinift was the absolute owner of all of the property at the time of his death, and that it is part of the assets of his estate to be disposed of in accordance with the terms of the will.

By her answer and amendments thereto, the defendant admits the relationship of the parties, and the execution and probate of the will. She then denies generally, and alleges: That the government bonds and certificates of deposit are her property and that she had the possession, control and ownership thereof prior to her husband's death; that none of these securities had ever been in the possession or control of the executor or of the estate; that the decedent and defendant had together accumulated the money which purchased this personal property, and that they had agreed that the securities should be made payable as designated therein and should belong to the survivor; that, as they had agreed, the securities as bought were delivered to the defendant and that she at all times after their issue, and at the death of the testator, had possession of them and thereby became their owner; that the road bonds were owned jointly and equally by the defendant and her husband and that after his death these bonds were sold, and by settlement with the executor, the estate and the defendant each accepted one half of the proceeds; that money acquired by the joint labors of the testator and defendant purchased all of the bonds and certificates which became their joint property; that the procurement of this property was the consummation of a verbal trust agreement that the survivor was to have and own the property; that the testator and defendant owned the property as joint tenants; that the government bonds are three party contracts between the government, decedent and defendant under the terms of which the defendant as the survivor of the two payees became their owner; that the government has recognized its contractual obligation by exchanging the old bonds for new bonds payable to defendant; that the two certificates of deposit are contracts between the respective banks and the decedent and defendant, that in the event of the death of either payee the deposits were payable to the survivor, which obligation has been performed by the banks; and that as to all of the property described in the petition, other than the government bonds, road bonds and certificates of deposit, the defendant disclaims any interest or ownership. The only other property described in the petition was the checking account balance, the partnership account, and the farm equipment and livestock. The foregoing is a statement of defendant's pleaded defenses as epitomized in her resubmission argument. At the conclusion of this statement appellant asserts that this court has given effect to all of these defense theories under a more inclusive rule that the evident intent of the parties must control. We agree that whatever may be the various defense theories, and whatever particular name may be given to each defensive theory, the controlling factor in the...