Wood v. Paul

Citations

• 250 Pa. 508
• 95 A. 720
• 1915 Pa. LEXIS 979

Syllabus

<p>Contracts — Construction — Creation of trust — Presumption against grantor.</p> <p>1. Where a trust is created by deed, the settlor has it in his power to define exactly what is to be given and what reserved and will be held to have intended to give everything not expressly reserved. The writing will be construed most strongly against him, every inference of law being drawn in favor of his grantee.</p> <p>2. A decedent, who owned a controlling interest in the stock of a manufacturing corporation, executed a declaration of trust in his lifetime, in view of his retirement from business, by which he transferred said stock to his brother and nephew, in trust, to pay to the brother the income from the stock during his lifetime, and should he die before the settlor, then to pay the income from the stock to the nephew, or for his benefit, and further providing, “should the said (nephew) predecease the said (brother) and me, ......then upon my death the right, title and property in said capital stock' shall at once vest in and belong to the said (brother) absolutely.” The deed further contained a declaration that the equitable ownership of the stock was in the brother and nephew; that settlor had only legal title, and could not sell except under certain conditions, and that the consideration for making the declaration of trust was the promise of the brother to devote his entire time and attention to the business of the company, and the further agreement of the brother, binding himself and the nephew, that he, or in the event of his death, his son (settlor’s nephew) would pay the settlor in cash $3,000 annually during his lifetime. The deed also contained the following clause: “I do hereby further declare that this trust and the stock or property held thereunder is irrevocable, except in the event of a breach of the performance of the same on the part of the said John E. Wood (the brother) in regard to the care and management of said business, or in the payment of said an