Doctor v. Hughes

122 N.E. 221 (1919)

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Nature of the Case

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Facts

Hanigan conveyed to a trustee a house and lot in the city of New York. The conveyance was in trust to pay from the rents and profits to the use of the grantor the yearly sum of $ 1,500. Upon the death of the grantor, he was to 'convey the said premises (if not sold) to the heirs at law of the party of the first part.' In case of a sale, he was to pay to the heirs at law 'the balance of the avails of sale remaining unexpended.' He was authorized at any time, if he so desired, to reconvey the premises to the grantor, and thus terminate the trust. The grantor was still alive during these proceedings. The grantor's sole descendants were two daughters. One of the daughters, P, conveyed to her husband all her interest in this real estate. Judgment against Mr. and Mrs. Hughes for upwards of $ 4,000 was afterwards recovered by P. P sued D to obtain D’s interest in the land. The court held that Mr. Hughes had obtained an estate in remainder which was subject to P's claims. The Appellate Division held that the creator of the trust did not intend to give a remainder to any one; that his heirs at law, if they receive anything on his death, will take by descent and not by purchase; and hence that there is nothing that creditors can seize. P appealed.