Emge v. Wells Fargo Bank & Union Trust Co.

DOOLING, J. This appeal is taken by the executors of the last will and testament of Adele Masson, deceased, from an order and decree of the Superior Court of Santa Clara County settling the eighth and final account of certain trustees and instructing those trustees.

Respondents, Wells Fargo Bank and Union Trust Company and S. L. Weston, are the trustees of a testamentary [511]trust created by the terms of the last will and testament of Paul Masson, deceased, father of Adele Masson, deceased.

The fourth clause of Paul Masson’s will provided that the residue of his estate should be held by the respondents in trust. Respondents as trustees were directed to pay to Paul Masson’s daughter, Adele Masson, the sum of $500 per month out of the net income of the trust. It was further provided in this clause:

“(b) This trust shall cease and terminate upon the death of my daughter, Adele Masson, who shall have the power of disposing of the corpus of this Trust after her death by her Last Will and Testament and upon her death the corpus shall vest as designated by her in her said Will.”

Paul Masson died October 22, 1940, domiciled in Santa Clara County where his will was admitted to probate.

Adele Masson, deceased, by her holographic will dated November 22, 1952, together with certain codicils thereto, exercised the power of appointment given to her by her father. In paragraph five of her will she provided:

“My father’s estate, now in charge of Wells Fargo Bank, I bequeath to whichever American society, which, in the discretion of my executors, does best research into the diseases of old age (geriatrics).”

On February 20, 1954, a codicil was added to the will to the effect that:

“Codicil: Instead of bequeathing my father’s entire estate to research in geriatrics, according to the original behest, I wish to abstract ten thousand dollars therefrom in order (1) to pay . . .” certain specified amounts to named beneficiaries.

Respondents-trustees filed in the Superior Court of Santa Clara County their final account and petition for instruction. They alleged that they had been advised by their counsel that they should distribute the remainder of the corpus of the trust in their hands directly to the persons and institutions mentioned in the will and codicils of Adele Masson but that the appellants, executors of the will of Adele Masson, deceased, insisted and demanded that the “corpus of said trust, or at least the sum of Forty-eight Thousand Two Hundred and Six Dollars ($48,206.00) thereof, be paid to said executors for the purpose of paying debts of said estate, executors fees, back income taxes, back and current state income taxes, and the compromise of a disputed