Gay v. Kernan Hospital for Crippled Children

Henderson, J., delivered the opinion of the Court. This appeal, by the heirs of residuary legatees under the will of Lizzie'E. Woolley, challenges the correctness of a decree directing the Trustee under item 3 of her will to pay over the entire principal or corpus of the trust, together with all income accrued thereon subsequent to the death of the life ⁴⁸³ tenant, to the two hospitals named therein as remaindermen, in equal shares. Income accrued prior to her death was accounted lor to the estate of the life tenant. Item 3 of the will bequeathed to the trustee “the sum of Ten Thousand Dollars ($10,000.00) in Trust, nevertheless, for the following uses and purposes, that is to say, In Trust to Invest the said sum of Ten Thousand Dollars in its name as Trustee, and after taking thereout all necessary and proper charges, to pay the net income received therefrom as and when the same may be got in and received, unto Annie M. Hayes for and during the term of her natural life, and from and after the death of the said Annie M. Hayes in Further Trust to pay Five Thousand Dollars of the principal sum to the ‘Kern-an Plospital for Crippled Children’ of Baltimore, Maryland; said bequest being in memory of Linda Bennett Woolley.

And in Further Trust to pay the sum of Five Thousand Dollars of said principal sum to the ‘Union Hospital’ of Flkton, Maryland; said bequest of Five Thousand Dollars being in memory of George Noble Bennett. In the investment of this said sum of Ten Thousand Dollars, I give my said Trustee ---full discretion as to the character and kind of investment it shall make.” The will, composed of 24 items, contained a large number of cash bequests, and the devise of real estate, to various relatives, friends and charities. Item 4 contained a bequest of $10,000.00, in trust, with a distribution in remainder of 2, 3 and 5 thousand dollars respectively. We are informed that this trust fund decreased in value and the remainders abated proportionately, although the matter is not before us in this proceeding.

The trust fund in item 3 increased in value to $18,-000.00. The will provided, in regard to the first four items, that all inheritance taxes should be paid out of the estate, and that these legacies should not be subject to abatement with other legacies, in case of a deficiency in the estate. On its face the will disposed of the entire estate. Item 23 contained a residuary clause in favor of two cousins, both of whom survived the testatrix, but not the life tenant under item 3.

The case presents a narrow