Colton v. Colton - 127 U.S. 300, 8 S. Ct. 1164 (1888)

Rule:

The object of a judicial interpretation of a will is to ascertain the intention of the testator, according to the meaning of the words he has used, deduced from a consideration of the whole instrument and a comparison of its various parts in the light of the situation and circumstances which surrounded the testator when the instrument was framed. No technical language is necessary to the creation of a trust, either by deed or by will. It is not necessary to use the words "upon trust" or "trustee," if the creation of a trust is otherwise sufficiently evident. If it appears to be the intention of the parties from the whole instrument creating it that the property conveyed is to be held or dealt with for the benefit of another, a court of equity will affix to it the character of a trust, and impose corresponding duties upon the party receiving the title, if it be capable of lawful enforcement. No general rule can be stated that will determine when a conveyance will carry with it the whole beneficial interest, and when it will be construed to create a trust; but the intention is to be gathered in each case from the general purpose and scope of the instrument.

Facts:

C, a citizen of California, died there, leaving a will which contained the following provisions: "I give and bequeath to my said wife E.M.C. all of the estate, real and personal, of which I shall die seized, possessed, or entitled to. I recommend to her the care and protection of my mother and sister, and request her to make such gift and provision for them as in her judgment will be best. . . . I hereby appoint my said wife to be the executrix of this my last will and testament, and desire that no bonds be required of her for the performance of any of her duties as such executrix." This will was duly proved in the probate court of San Francisco. The widow having failed to make suitable provision for the mother and sister, each filed a bill in equity against her, setting up that the provision in their favor in the will was a trust. The bills alleged that the property received by the widow under the will amounted to $1,000,000; that the sister was dependent upon the mother for support; that the mother was in feeble health and required constant care, and was without means of support except the sum of $15,000 loaned at interest, which loan was well known to the testator when he made his will and at the time of his death; that no suitable provision had been made for either mother or sister by the widow, but that they had been left in "very straitened circumstances." The remedy sought in each bill was that the widow should be required to make a suitable provision for the complainant. To each bill a demurrer was filed on the ground that the will created no trust; that the court had no jurisdiction; that the claim was stale, having accrued more than four years before the commencement of the suit; and that the matter had been adjudicated by the probate court of San Francisco in the probate of the will.

Issue:

Were the sister and mother entitled to take a beneficial interest under the testator's will?

Answer:

Yes.

Conclusion:

The Court reversed the circuit court's decrees because the sister and mother were entitled to take a beneficial interest under the testator's will. The Court concluded that the probate court's decree did not adjudicate the issue of whether a trust arose after the widow came into possession of the estate as devisee and legatee. The Court found that the testator intended that his widow would take the estate and would provide for his sister and mother to whom he owned a duty of care and protection. The Court concluded that whatever discretion was given to the widow by the testator's will did not affect the existence of the trust, as that discretion did not involve the right to choose whether a provision would be made. The Court remanded that case to the district court to determine and declare what provision would be suitable and best and all particulars and details for securing and paying it.