Jamison v. Wells Fargo Bank & Union Trust Co.

California Court of Appeal May 11, 1943 No. Civ. No. 12020; Civ. No. 12021Published

Before: Peters

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Holding. Beneficiaries of a testamentary trust are entitled to receive income from the date of the testator's death, rather than from the date of distribution, in the absence of an express provision in the will to the contrary.

Issues

Whether trust beneficiaries are entitled to income from the date of the testator's death or the date of distribution when the will is silent on the matter.

Disposition. reversed

Quotations verified verbatim against the opinion

“the majority rule elsewhere, and the rule of the Restatement of the Law of Trusts, section 234, is that in the absence of express provision in the will to the contrary the beneficiaries are entitled to receive income from the date of the death”

PETERS, P. J. Walter Keith Jamison, appellant in action No. 12,020, and Mabel Ward, appellant in action No. 12021, and the decedent Annie E. Hyland were brothers and sisters. Walter and Mabel survived Annie. The latter died testate devising two-thirds of the residue of her estate to trustees for the use and benefit of Walter and Mabel. In due course the estate was distributed to the trustees. Thereafter, the trustees filed their first accounts together with petitions for instructions from the court. The trustees desired instructions on the question as to whether the two beneficiaries of the trust were entitled to be paid their respective portions of the income of the trust from the date of the death of the testatrix or from the date of distribution. The trial court held that they should be paid income from the date of distribution. From that determination the beneficiaries separately appeal.

The will provided that the residue of the estate was bequeathed one-third to her niece and two-thirds to the trustees. The trusts relating to appellants read as foEows:

“(b) One-third (%) thereof unto my trustees hereinabove named, in trust, nevertheless, for the foEowing uses and purposes : To pay the net income, revenue and profit therefrom, together with as much of the corpus and principal as may be necessary for his maintenance and support, monthly, unto my brother, Walter Keith Jamison. Upon his death, the sum of Five Hundred Dollars ($500.00) shall be paid from the corpus and principal thereof unto his daughter, Melba Jamison, and the remainder thereof shall be subject to the provisions of paragraph (d) below:

“(c) One-third (%) thereof unto my trustees hereinabove named, in trust, nevertheless, for the foEowing uses and purposes : To pay the net income, revenue and profit therefrom, together with as much of the corpus and principal as may be necessary for her support, monthly, unto my sister, Mabel Jamison Ward. Upon her death, the remainder thereof shall be subject to the provisions of paragraph (d) below.”

It is to be noted that, so far as the bequest to Walter is concerned, the wiE provides that as much of the corpus of the trust “as may be necessary for his maintenance and support” is included, but there is no reference in the wiE to the bequest of income being for such purposes. The provision for Mabel is the same, except that the word “maintenance” [558]is omitted. The decree of distribution follows the language of the will.

Jamison v. Wells Fargo Bank & Union Trust Co.

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