Thomsen v. Security-First National Bank

DORAN, J. According to appellants’ brief, “There is only one question of law involved in this appeal, namely the correctness of the court’s decision in finding and establishing a trust under the terms of last will and testament of the decedent.”

[491]The testator’s original will, which was typewritten, witnessed and dated June 2, 1936, had in Clause VIII, created a trust in favor of decedent’s son and only heir. This will was followed by seven holographic codicils, one of which, dated May 10, 1947, “cancelled” the original Clause VIII and set up a new Clause VIII which did not make use of the terms “trust,” “trustee,” or “trust estate.” The probate court concluded, nevertheless, that the substituted Clause VIII created a trust in favor of the son. From that decision and order of distribution, testator’s son, and Carl H. Thomsen, the named executor, have appealed.

William L. Easley, the testator, died on July 25, 1947, and was survived by William L. Easley, Jr., appellant herein, who was then about 20 years of age, and had married at the age of 19. It may be noted that the testator’s real estate consisted of an undivided one-half interest in business property located at 211-219 N. Market Street, Inglewood, California valued at $150,000, the other half interest belonging to the executor, Carl H. Thomsen.

The executor’s final account shows other assets consisting of a record player, diamond ring, personal effects and household furniture, and cash in the sum of $4,209.69, the entire estate for distribution being valued at $153,609.25. On January 22,1952, the son, William L. Easley, Jr., filed an Election of Beneficiary “to take the undivided one-half interest in the real estate which constitutes the principal asset of my father’s estate in kind in place of having the real estate sold and the cash distributed to me.”

Clause VIII of the original will reads as follows: “The remaining one-half of said residue, after the conversion thereof into cash by said executor, as hereinbefore provided in Clause V of my will, I give, devise and bequeath unto the Security-First National Bank of Los Angeles, in Trust, for the following uses and purposes.” The trustee is directed to invest and reinvest the fund in stocks and bonds, income therefrom to be paid to decedent’s son. One-third of the corpus is to be turned over to the son at the age of 25 years, another third at the age of 30, and the remainder to be paid over at the age of 35.