Académique Documents
Professionnel Documents
Culture Documents
, 1953)
-1-
Jorgensen v. Pioneer Trust Co., 198 Or. 579, 258 P.2d 140 (Or., 1953)
handle estate, to be the sole executor of this, the entire estate divided among the heirs.'
my Will, and the trustee of the trust herein Thus they [the sons] became in legal effect
created * * *.' joint tenants in the trust property and the
income therefrom.'
The will's Fourth article is the only one
with subparagraphs and, therefore, all It takes no extended analysis of the will to
references hereinafter made to subparagraphs demonstrate that the instrment vests Claude
Jorgensen with no powers even remotely akin
Page 143 to what counsel with such sweeping
generality ascribes to him. Under [198 Or.
necessarily refer to matter found in that 586] the will Claude is given but one, and only
article. one, power relating to the disposition of the
estate left by his mother. That is found in
It is the contention of the plaintiff that by subparagraph (e) which authorizes the trustee
reason of the prior deaths of his brothers, to sell the Liberty street residence 'in the
Harold and Ira, it [198 Or. 585] is impossible event my said son, Claude W. Jorgensen,
for the trustee to carry out the terms of the desires to dispose of the same', upon which
will, particularly that part of subparagraph (g) happening the avails of the sale are not then
which directs that the 'trust shall terminate districuted but are held by the trustee with
upon the death of my said son, Claude W. the income therefrom for the use and benefit
Jorgensen, and that my trustee then shall pay of Claude.
over, transfer and deliver the entire principal
constituting the trust, as the same shall then The defendant trustee controverts the
be, to my said sons, Harold E. Jorgensen and claims of plaintiff and asserts that the trust
Ira W. Jorgensen * * * share and share alike'. will not terminate upon the death of the
Plaintiff argues that the death of his two plaintiff, Claude W. Jorgensen. As to the
brothers worked a failure of the provision income provisions, the trustee asserts that
referred to and that he is, by reason thereof, because the will makes no provision for the
now entitled to receive the entire trust estate disposition of Harold's and Ira's shares in the
with all accumulations as the 'sole survivor of event of their death the two thirds,
the three persons made joint beneficial theretofore available to them, must be
owners'. This is predicated upon a claim of retained by the trustee as additional corpus to
cross remainders. He also argues that the gift be ultimately distributed as principal on the
of income provided in subparagraph (b), for termination of the trust.
the benefit of Mrs. Jorgensen's three sons, is a
gift to a class, thereby creating in her son The answers of the defendants, Conie
Claude a survivorship interest in all the Jorgensen, Iris Jorgensen Collins and Carl
income derived from the trust. Collins, her husband, present or raise no issue
not presented or raised by the cross
Plaintiff seeks to fortify, and no doubt complaint of the defendant trustee.
attempts to exemplify, his claimed present
legal status in the premises by repeatedly The decree, after denying the relief
representing that the property conveyed by prayed for by the plaintiff and holding that
his mother under the will made all the title to the trust property, including the
distributions subject to his consent. This Liberty street residence, was vested in the
unique position is at one place extravagantly defendant trustee, further provided:
expressed in these words: '* * * the will was so
drawn * * * that Claude Jorgensen had the '(2) That during the life of Plaintiff, Claude W.
right of saying 'This property may be sold and Jorgensen, he is entitled to receive one-third
-3-
Jorgensen v. Pioneer Trust Co., 198 Or. 579, 258 P.2d 140 (Or., 1953)
(1/3) of the net income from said trust corpus remainders.' * * *' 4 Thompson, Real
and the remainder of such income, exclusive Property, Perm.Ed., 762, 2224; also see 2
of the income from 472 N. Liberty Street, Simes, Law of Future Interests, 258, 435.
Salem, Oregon, shall be added to the corpus
and be ultimately distributed with such Resolving plaintiff's thesis of cross
corpus as hereinafter provided. remainders in terms of the instant matter, it
would follow, if true, that Mrs. Jorgensen
'(3) That upon the death of plaintiff, Claude conferred on each of her sons a life estate in
W. Jorgensen, without issue of his body her property with the incident reciprocal right
surviving, [198 Or. 587] the entire trust estate of survivorship in each of them. When applied
then remaining that has not previously been to [198 Or. 588] the known facts here, then
disposed of in accordance with the terms of upon Harold's death his share of the estate
the Will of said Minnie Jorgensen shall be vested equally in his brothers, Ira and Claude;
forthwith conveyed, transaferred and and upon Ira's death, Ira's interest vested in
delivered by trustee, free of trust, unto Iris Claude, making the latter the owner of the
Jorgensen Collins or to the issue of her body entire fee.
contradict any claim that Mrs. Jorgensen estate to take effect in possession at the end of
contemplated the creation of an estate of the life of the survivor of the designated life
cross remainders in her sons. tenants.' 1 Restatement, Property, 361,
115(d).
The second provision contemplating a
possible vestment of any part of the corpus in Applying the rule last stated, the
the sons of the testatrix is found in following would have transpired under the
subparagraph (g). This we will discuss more will of Mrs. Jorgensen had Claude
fully later. It is fufficient here to say that [198 predeceased his brothers, Harold and Ira: The
Or. 589] under it, Harold and Ira, if living, [198 Or. 590] trust would terminate and if
would have taken the shares there reserved to Claude had died without issue surviving, then
them as tenants in common in fee simple and his living brothers would each be immediately
that Claude would take absolutely nothing. vested with an undivided one-half interest as
Indeed, the will is clear that it was Mrs. tenants in common in the fee; and in the
Jorgensen's design that Claude would never further event that Claude died leaving issue
take, through the trust, more than one-third surviving, then their respective moieties
of the income, plus such principal amounts would be reduced to undivided thirds.
under subparagraph (d) as the trustee
deemed advisable for his support and The provisions of subparagraph (g) in
maintenance. this respect clearly repel any suggestion of
reciprocal cross remainders in either Harold
Cross remainders may come into being or Ira which would or could vest in either of
by deed or by will. No precise form or them as the survivor of the other. By the
technical words are necessary for their operation of subparagraph (g), the sons last
creation; but if created by deed, it must be referred to, during their lifetimes and prior to
done by express words, whereas in a will they the death of their brother Claude, if he died
may often be implied to effectuate the before them, were endowed with a
intention of the testator. 4 Thompson, Real prospective title as owners of the entire fee,
Property, Perm.Ed., 762, 2224; 2 Simes, without the incidents of a life tenancy
Law of Future Interests, 258, 435. conditioned with a right of survivorship in the
whole.
Page 145
As a make-weight argument, it is pointed
In 33 Am.Jur., Life Estates, Remainders, out that Claude's name is mentioned in the
etc., 540, 83, we find: will more often than are the names of Ira and
Harold; and that when the testatrix names all
'* * * In order to constitute a cross remainder three sons together, Claude's name,
by necessary implication, there must appear 'invariably leads all the rest,' somewhat like
in the will an intention that no person shall Abou ben Adhem's, though less obviously for
inherit any part of the estate or take it by way the same sterling reasons. From this use of
of remainder so long as any of the devisees or Claude's name by the testatrix in greater
any of their issue, to whom it is given, are frequency and in preferred position,
alive.' contextually speaking, we are invited to infer
that Claude enjoyed a higher place in his
Also see 10 Eng.Rul.Cas. 834. mother's affection than did his brothers and
was designedly to become the taker of the
The operation of the rule relating to the whole if his brothers predeceased him.
implication of cross remainder estates
'requires an effective limitation of a future
-5-
Jorgensen v. Pioneer Trust Co., 198 Or. 579, 258 P.2d 140 (Or., 1953)
-6-
Jorgensen v. Pioneer Trust Co., 198 Or. 579, 258 P.2d 140 (Or., 1953)
Also see In re Estate of McCoy, 193 Or. 1, Although in the gift of income which Mrs.
4, 236 P.2d 311. Jorgensen has made to her three sons, 'share
and share alike', there is no longuage which
[198 Or. 593] The universal rule for the expressly restricts the estate given to them to
determination of whether a given gift to a life estate for each, yet there is not enough
several persons is to a class rather than to in subparagraph (b) to carry any larger estate;
them as individuals is to assertain the and if there were, we think that the
controlling intention of the testator. In aid of subsequent words by which the direction is
this, the law has long had recourse to various made, i. e., 'giving each of my said sons one-
matters as indicia of such intention on the third of * * * said income annually * * *
part of the testator. We will here, however, during their natural life', would effectually cut
refer to only those few which are peculiarly down their respective [198 Or. 594] interests
pertinent to the language employed by Mrs. to life estates without reciprocal cross
Jorgensen in creating her testamentary remainders in the interests of the others. In re
dispositions. Laverick's Estate, 18 Jur. 304, 305.
The usual situation wherein the term any reasonable construction it can be
'lapse' is used 'is that occasioned where a avoided. This presumption gains [198 Or.
legatee or devisee dies before the testator, but 596] strength when the subject of the gift is
the expression 'lapse' has frequently been the residuary estate. In re Estate of McCoy,
employed with reference to other situations, supra, 193 Or. 6, 236 P.2d 313; 57 Am.Jur.,
such as * * * the death of a donee of [198 Or. Wills, 754 et seq., 1158, 1159; 69 C.J., Wills,
595] the income from a testamentary trust 91, 1147.
after the death of the testator and before the
termination of the trust * * *.' 57 Am.Jur., It has long been established that when a
Wills, 954, 1424. trust fails by the death of a donee or cestui
que trust, a trust, to the extent of the estate
We recoil from the disposition of some given, will result to the donor, his heirs or
courts and text writers to use the words 'fail' legal representatives, if the donor, his heirs or
and 'lapse' as synonymous terms in the representatives have not made provision for
nomenclature of the law, when applied to its disposition in the event of such failure. 1
situations reflected by the foregoing citation Perry, Trusts and Trustees, 7th Ed., 254,
to 57 American Jurisprudence; and, 160; Underhill, Law of Trusts and Trustees,
therefore, we hereinafter apply the terms 'fail' 10th Ed., 172, art. 27.
and 'lapse' as referring to separate legal
situations in the sense indicated by Professor The Fourth article of the testatrix' will,
Page in 4 Page, Wills, 163, 1414, where he taken as a whole, we read as her provision for
said: the disposition of her residuary estate. The
trust created thereby and the residuary clause
'If the beneficiary received a contingent gift, are one and the same. The trust is made the
and died, after testator, but before the gift medium for the administration of the life
vests, such gift fails. While this is sometimes estates created thereby and for the
spoken of as lapse, this is not an accurate use distribution of the residuary estate in the
of the term. If the beneficiary dies after the manner and at the time indicated by that
gift vests in interest, the gift does not lapse article. Under the Fourth article, until
even though it has not yet taken effect in transfers of income or principal there directed
possession. A gift does not lapse because of are made to the beneficiaries designated, the
the fact that the beneficiary dies after testator, trustee is vested with title thereto.
but before the will is admitted to probate.'
We think that Mrs. Jorgensen's last will
In so doing, we are maintaining the and testament justifies the conclusion that
integrity and distinctive legal character of the she evidently supposed that she had disposed
term 'lapse' as it was used in Scott v. Ford, 52
Or. 288, 294, 97 P. 99; Shadden v. Hembree, Page 148
17 Or. 14, 24, 18 P. 572; and more recently in
In re Estate of McCoy, supra. of her entire estate and did not die intestate
as to any part thereof. Since she had vested
At the outset we are confronted with a her trustee with title to her residuary estate,
presumption that Mrs. Jorgensen intended to any life estate created by the trust but failing
dispose of her entire estate and did not die during the term thereof for want of a specific
intestate either as to the whole or any part provision for the further disposition of such
thereof. Where a provision of a will is fairly interest upon the death of the life tenant, in
open to more than one construction, a this instance, the income reserved for Harold
construction resulting in an intestacy as to and Ira, remained in the trustee as an
any part of an estate will not be adopted if by addition to the trust corpus, to be
-8-
Jorgensen v. Pioneer Trust Co., 198 Or. 579, 258 P.2d 140 (Or., 1953)
distributed[198 Or. 597] as such to those We have carefully examined all the
found entitled thereto on the termination of authorities that the appellant has marshaled
the trust estate, that is, upon the death of in support of his several propositions but find
Claude. Union & New Haven Trust Co. v. therein nothing at variance with what we have
Sellek, 128 Conn. 566, 24 A.2d 485, 140 said.
A.L.R. 837, and annotations at p. 864; 1 Scott,
Trusts, 718, 143. The decree is affirmed.
-9-