Johnson v. Whiton

Supreme Judicial Court of Massachusetts · 1893 · Property

PropertyTrustsFuture intereststrust deedheirsdistributeesremainderlegal estate in fee

Facts

Nathan Johnson executed a deed of trust reciting that its purpose was to secure the income of the trust property to his wife and the property to their children. The deed conveyed real and personal property to trustees with words sufficient to pass the legal estate in fee, and it gave the wife a life interest, with further provisions depending on whether she died before the grantor and whether she left a will. If she left no will, the deed directed that after the grantor's death the trustees should convey the property to the 'person or persons legally entitled.' A question arose whether the grantor or his son, who died before him, had any interest in the estate that creditors could take.

Issue

When a trust deed provides that, if the wife leaves no will, the trustees shall after the grantor's death convey the property to the 'person or persons legally entitled,' does that language leave a present interest in the grantor or his son that creditors may reach, or does it create a remainder in the grantor's heirs or distributees determined only at his death?

Rule

Where a trust deed expressly requires the trustees, after the grantor's death, to convey the principal to the persons then 'legally entitled,' and the deed contains no other disposition of the principal and no indication that the grantor reserved any greater interest in the personalty than in the realty, the phrase refers to the grantor's heirs or distributees as determined at the time of his death. Because no one is heir to a living person, neither the grantor nor a child who dies before the grantor has a present interest in the remainder that creditors can seize.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

In Portland, Maine, Elias Mercer deeded his warehouse and investment accounts to Harbor North Trustees, using full words of conveyance for both real and personal property. The deed provided income to his wife for life, and if she died without a will, the trustees were to convey the principal after Elias's death to the persons "legally entitled."

Before Elias dies, a judgment creditor of Elias seeks to attach Elias's supposed remainder in the trust principal. Which is the best answer?

Explanation. Where a trust deed gives trustees the legal estate in fee, makes no other disposition of the principal, and directs that after the grantor's death the principal be conveyed to the persons "legally entitled," that phrase refers to the grantor's heirs or distributees at the time of death. Because no living person has heirs, the grantor has no present attachable remainder. The possibility that income might be paid to the grantor in an interim period does not create a presently reachable interest in the principal.