Opinion ID: 1567095
Heading Depth: 1
Heading Rank: 1

Heading: The Gift to Class One

Text: Under the trust indenture it is clear that the settlor did not intend the various classes mentioned to close at the time the indenture took effect. Nor was the gift by its terms only to those children and grandchildren of the daughter living upon the daughter's death. The general rule is that in the case of a gift to a class, the members of that class who are to take are ascertained at the time set for distribution. [5] In the case of the Class One here, the time for distribution of the corpus would be when the first member of the class (settlor's grandchildren) attained twenty-five, after the termination of the prior life estate. [6] If there were no provisions for income payments before that time, the gift to them would violate the rule against perpetuities. Coggins' Appeal, supra. However, we think it clear under the Pennsylvania decisions that the provision for payment of the income of the trust to the members of Class One saves their gift from invalidation under the rule. It has long been the law in Pennsylvania that a direction that income be paid to an ascertained beneficiary of a trust until there is a distribution to him of corpus, indicates an intention that a present gift was intended. In such a case, age is not descriptive of those who are to take but of the date of payment. The particular interests vest with only possession and enjoyment postponed. In re Bilyeu's Estate, 1943, 346 Pa. 134, 29 A.2d 516; Safe Deposit & Trust Co. v. Wood, 1902, 201 Pa. 420, 50 A. 920. Here, the members of Class One will necessarily be definitely ascertained at the time the preceding life estate terminates since they are the children of the life tenant. Consequently, the number who would share the income at that date would be determinable. Since, under the trust they are to receive the income upon the termination of the life estate until the corpus is distributable, their interests vest upon the termination of the life estate. Therefore, the gift to them does not violate the rule against perpetuities, since their interests must vest, if at all, upon the death of their mother, a life in being when the trust was executed. That the interest of any member of Class One would be subject to divestment in the event that member does not reach twenty-five, is immaterial. In re Bilyeu's Estate, supra.