Security-First National Bank v. Gorchakoff

California Court of Appeal Dec 6, 1951 No. Civ. No. 18718Published

Before: McComb

AI Brief

AI-generated · verify before citing

Holding. The court held that the residuary trust did not violate the rule against perpetuities because it was required to terminate upon the death of a person in being at the time of the trust's creation, and that the charitable bequest issue was premature.

Issues

Did the will violate the rule against perpetuities as set forth in sections 715, 716 and 724 of the Civil Code?
Did the will violate section 41 of the Probate Code in that it awarded to charity more than one third of the estate?

Disposition. Affirmed

Quotations verified verbatim against the opinion

“The trust came into existence upon the death of decedent. Therefore under the provisions of the will above quoted it , was to terminate in any event upon the death of a person in being at the time of the creation of the trust.”

“Therefore it did not violate the rule against perpetuities.”

“The probate court expressly reserved jurisdiction to determine at a later date the amount to be awarded to charity.”

McCOMB, J. This appeal is from a decree of distribution holding valid a residuary trust created by the will of decedent.

Maurice Gorchakoff died March 31, 1950, aged 71 years, leaving a will dated March 6, 1947. Surviving him were his two heirs at law, his daughter, Mrs. Beatrice G. Leader, and a son, Benjamin Gorchakoff. Mrs. Leader has had no issue while Benjamin Gorchakoff has two daughters, Gloria and Marlene, and a son, Robert.

The estate was of the appraised value of $65,006.90. The will provided in part as follows:

“FIFTH: I give, devise and bequeath all of the rest, residue, and remainder of my estate, both real and personal and wheresoever situate, including all lapsed legacies, to Security-First National Bank of Los Angeles, a national banking association, in trust, to hold, manage and distribute, as hereinafter provided:

“ (1) To collect the principal and interest of the trust estate, invest and reinvest the same; to pay, accumulate, use and manage the income, and to use, manage and invest the principal and income, as hereinafter provided;

“ (2) All income shall be added to and become principal.

“(3) The Trustee shall pay out of the principal so accumulated the sum of $150.00 per month to my daughter, Beatrice G. Leader, for life. If my daughter shall predecease me, or shall die after the creation of this trust, leaving issue, her surviving, said sum of $150.00 per month shall he paid in equal shares to said issue until the youngest of such issue shall have reached the age of 21 years, at which time said payments shall terminate. If in the discretion of the Trustee the sum of $150 shall be insufficient to provide my said daughter or her said issue her surviving with reasonable care in case of illness or accident, the Trustee may pay to, apply or expend for the care of my said daughter or of her issue her [46]surviving and entitled to take hereunder so much of the principal as the Trustee may deem advisable.

‘1 (4) Notwithstanding any other provision herein, this trust shall terminate on the death of the survivor of my daughter and of her issue living at the date of my death, and the Trustee shall distribute one-half of the corpus of said estate to the issue of my daughter by right of representation, and the remaining one-half thereof to the following named institutions or charities in the following per cents, provided, however, that if my said daughter shall leave no issue her surviving the entire trust estate shall be distributed to the following named institution or charities in the following per cents:

Security-First National Bank v. Gorchakoff

AI Brief

More from California Court of Appeal

Related research

AI Brief