Industrial National Bank Of Rhode Island v. Barret

220 A.2d 517 (1966)

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Nature of the Case

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Facts

Arthur, husband of the deceased, died January 28, 1959. Arthur devised the property, which qualified for the full marital deduction, to P, in trust, with directions to pay the net income at least quarterly to Mary, his wife, for life and such amounts of the corpus annually or at more frequent intervals as she should in writing request, for her comfort and support, and without being accountable to any court or remainderman therefor. He also conferred upon her a general testamentary power of appointment over the corpus remaining at her death. Mary died October 28, 1963. Under the fourth clause of her will, admitted to probate she exercised her general testamentary power of appointment to P, in trust 'to pay over the net income thereof to and for the use and benefit of my granddaughters, Aline C. Lathan and Evelyn M. Barrett * * * equally for and during the term of their natural lives, and upon the death of either of them, to pay over said net income to her issue, per stirpes and not per capita.' P was also given uncontrolled discretion to pay over to either of said grandchildren or the issue of any deceased grandchild, for specific purposes, portions of the principal. Mary provided the trust would terminate 'twenty-one (21) years after the death of the last survivor of the younger grandchild or issue of either grandchild of mine living at my death * * *.' On the date of Arthur's death, Aline and Evelyn and one great-grandchild were in being. On the date of Mary's death, six additional great-grandchildren were in being. One great-grandchild was born subsequent to her death. The question raised is whether Mary's exercise of the power of appointment under her husband's will violates the rule against perpetuities and, if so, what persons, and to what extent, are now entitled to share the property.