Talbot v. Talbot

• Decision Date: 11 January 1911
• Citation: 78 A. 535,32 R.I. 72
• Parties: TALBOT et al. v. TALBOT et al.
• Court: Rhode Island Supreme Court

78 A. 535

32 R.I. 72

TALBOT et al.

v. TALBOT et al.

Supreme Court of Rhode Island.

Jan. 11, 1911.

Case Certified from Superior Court, Providence and Bristol Counties; Willard B. Tanner, Judge.

Bill by Frederic E. Talbot and others against Jeannette A. Talbot and others. Certified from the Superior Court under Gen. Laws 1909, c. 289, § 35. Questions answered.

Herbert A. Rice, for complainants.

Edwards & Angell, Royal H. Gladding, and James C. Collins (Eugene A. Kingman, of counsel), for respondents.

PARKHURST, J. This cause is a suit in equity brought by three of the executors of the will of Frederic Talbot, late of Providence, deceased, for instructions relative to certain trust deeds and to determine the ownership of certain shares of capital stock of the Gorham Manufacturing Company and of the Silversmiths' Company, formerly owned by the testator. The cause is before this court on bill, answers, and proofs, having been certified for determination to this court by the superior court under chapter 289, § 35, Gen. Laws 1909.

The bill names as defendants the beneficiaries of certain deeds of trust, described in the bill, and also the beneficiaries, other than the complainants, of the residuary trust estate created by Frederic Talbot's will. The bill states that upon the death of Frederic Talbot his executors found in his safe-deposit box a certificate for 75 shares of the preferred stock of the Gorham Manufacturing Company and certificates for 20, 10, 10, and 54 shares, respectively, of the stock of the Silversmiths' Company standing in the name of the testator and unindorsed, and also 5 instruments in writing, signed by the testator, copies of which are filed with the bill, which purport to declare and create trusts of 75 shares of Gorham preferred stock and of 20, 10, 10, and 54 shares of Silversmiths' stock, respectively, by conveying the same to trustees to pay the income therefrom to the testator for life, and after his death to the above-named defendants; that the trustees named in said instruments are the complainants and the defendant Martha Talbot, who also are the trustees named in the residuary clause of the will; that the said trustees, believing said instruments were legally binding upon them and in full force and effect, caused transfers to be made of the said stock to themselves as trustees, and now hold in their possession, in place of the said certificates of stock, certificates for like amounts in their names as trustees for the respective beneficiaries named in said instruments; that they now desire the opinion of the court as to whether the instruments are valid, and the trusts therein fully constituted, and as to whether they should hold said stock certificates under the trusts of the said instruments or under the residuary trusts of the will. To this bill certain of the defendants, who are beneficiaries under the will, have filed an answer in which they deny that the testator delivered said certificates or said instruments to either of the trustees named in said instruments for the purpose of constituting a present trust, and allege that it was the intention of the testator that said instruments should not become operative or take effect until after his death. They pray that it may be decreed that the trusts were not fully constituted and that the said certificates are a part of the residuary trust estate under the will. Jeannette A. Talbot, C. Elizabeth Todd, Caroline L. Sanborn, and Martha Talbot, the defendants who take life interests under said instruments, have also filed an answer to the bill in which they allege that the testator delivered said certificates and also delivered said instruments to Martha Talbot, one of the trustees therein named, for the purpose of creating the trusts therein set forth. They pray that it may he decreed that the trustees hold said certificates of stock upon the trusts contained in said instruments.

The material facts admitted in the pleadings or established by uncontradicted evidence are as follows: Frederic Talbot deceased on December 20, 1907. In the winter prior to his decease, he said to his wife, the defendant Jeannette A. Talbot, that he intended to create for her a trust of 75 shares of Gorham preferred stock, which would pay her $450 a year. Later, in the month of February, he produced a trust deed which he had composed and written himself, and, upon objection being made thereto by his son Charles, stated that he would take it to Mr. William R. Tillinghast and "have it made binding." Thereafter, on March 6th, he went to Mr. Tillinghast's office and executed in fits presence as witness the instrument which is mentioned in paragraph seventh of the bill of complaint (Complainant's Exhibit F), and which purports to give, assign, and transfer to the abovementioned trustees 75 shares of Gorham preferred stock, in trust, to pay the income to the grantor during his life, and upon his decease to pay the income to his wife, the respondent Jeannette A. Talbot. He then came home much pleased, saying, "It is all right now, I have had it made binding," and handed Mrs. Talbot a copy and asked her to read it, which she did, comparing it with the original. Thereafter, on March 12th, he had a long conversation with his daughter, the respondent Martha Talbot, regarding this trust, explaining to her that he had made this trust deed to give Mrs. Talbot the income of the 75 shares for life, and telling her that she and her brothers were the trustees. He then handed the trust deed to her and said, "There, now, I have given that to you," and, upon her asking what she should do with it, he told her to return it to him. He then asked Martha Talbot to call a witness, and in the presence of the witness executed the instrument which is mentioned in paragraph tenth of the bill of complaint. By this instrument the testator purports to sell, assign, and transfer, for value received, unto the said trustees, "seventy-five shares of the capital stock represented by the herewith attached certificates" and to thereby "irrevocably constitute and appoint" the said trustees his attorneys to transfer the said stock on the books of the Gorham Company. After executing this power of attorney, Frederic Talbot went with his wife to the Rhode Island Safe Deposit Company and deposited the original trust deed and Mrs. Talbot's copy in a safe-deposit box, which stood in the joint names of Frederic Talbot and Martha Talbot, and in which he and Martha kept their valuables. This box originally stood in the joint names of Frederic Talbot and his brother's widow, but in 1904 was transferred to the names of Frederic and Martha Talbot. It remained in their names until Frederic Talbot's death and still stands in the name of Martha Talbot. Before her name was added, Martha Talbot's papers, certificates, and other valuables were always deposited for her by her father in this box. Afterwards, having free access to the box, she kept them there herself. She had no other place to keep them. Mr. Talbot also kept his own valuables there, except such as were deposited in a safe at his home; and also certain possessions of his wife. In this box Frederic Talbot deposited the aforesaid deed of trust, placing it and a certificate for 75 shares of Gorham preferred stock, to which was pinned the abovementioned power of attorney, in an envelope upon which he wrote "Miss Martha Talbot, 67 Congdon St.," and also: "Copy of Trust made to Martha, Fred E., Laurie H. and Ernest D. for Mrs. J. A. Talbot's life, after me 75 shs. Gor. Pfd. of which a copy is directed to her. Another envelope 'Note' the 75 shares Gor. Pfd. stock is also herein enclosed." Mr. Talbot was accustomed to thus address to Martha envelopes which he deposited containing her property. The certificates which were thus deposited had formerly been kept in an envelope upon which Mr. Talbot had written, "This envelope of F. Talbot's contains 75 shares of preferred same." Mr. Talbot now wrote across the "75 shares" the words "withdrawn and put with trust."

Thereafter, in the spring of the same year, Frederic Talbot purchased a certificate for 20 shares of the capital stock of the Silversmiths' Company and told Martha that he was going to make a trust of those shares for his wife, in addition to the other trust. At about the same time he consented to exchange his Gorham common stock for Silversmiths' stock, and before leaving the city for the summer arranged with the Gorham Company that he should leave his Gorham certificates, and that the Rhode Island Hospital Trust Company should receive the Silversmiths' certificates for him and keep them until his return. During the summer he told Martha that as soon as he got the certificates he was going to have certain trusts made; that he had made a good investment by the exchange and felt justified in taking the stock to make a trust for her and for Mrs. Talbot. He returned in September, and on September 25th asked Martha to go with him to the trust company to receive the certificates. At the trust company he receipted for the certificates, among which were certificates for the respective amounts of 10, 10, and 54 shares. Upon receiving the latter he gave them separately to Martha. They then deposited them in the abovementioned safe-deposit box. Thereafter, in October, Frederic Talbot went to a stenographer and had four trust deeds written, using as a form the abovementioned trust deed of Gorham stock. These four trust deeds are the ones mentioned in the third, fourth, fifth and sixth paragraphs of the bill of complaint. They purport to transfer and assign the respective shares of Silversmiths' stock to the aforesaid trustees upon trust to pay the income to Frederic Talbot for life, and upon his death to the respective beneficiaries for life. These beneficiaries are the respondents, Martha Talbot, Jeannette Talbot, Caroline L. Sanborn, and C. Elizabeth Todd. Complainant's Exhibits B, C, D, and E. Mr....