Opinion ID: 1938954
Heading Depth: 1
Heading Rank: 3

Heading: What then is the indicia of intention to be found in the testamentary instrument here involved?

Text: In relevant part, testator's will specifically gave to the life tenant, power to sell and convey any and all of the real estate, and on her death whatever property remains, personal, real or mixed, of every kind and nature, to vest in designated remaindermen. The apparent majority rule is that, where a life tenant is accorded unrestricted power to sell or convey, followed by a gift over after the life estate, any qualifying terms such as whatever property remains, so much as remains, and the remainder if any, or words of like import, ordinarily mean the life tenant may intrench upon the principal or corpus. See editorial preface, Annos. 108 A.L.R. 542, 544. To the same effect is this statement in Jorge v. da Silva, supra, loc. cit., 218 A.2d 663:    the courts have said that the testator (thereby) anticipated a possible diminution of the corpus and in the absence of any language or circumstances indicating a contrary intent have sometimes inferred that the testator intended that the first taker could use or consume the corpus at the expense of the remainderman. (Authorities cited). See also Hamilton v. Hamilton, 149 Iowa 321, 330, 128 N.W. 380; Wenger v. Thompson, 128 Iowa 750, 754, 105 N.W. 333; Dennis v. Trustees of Choateville Christian Church, Ky., 290 S. W.2d 601, 602-603; St. Joseph Hospital, Lexington v. Dwertman, Ky., 268 S.W.2d 646, 647-648; In re Kelly's Will (Sur.), 137 N.Y.S.2d 87, 88-90; 5 Page on Wills, Bowe-Parker Revision, section 45.6; 33 Am.Jur., Life Estates, Remainders, Etc., section 237, page 724; and Annos. 31 A.L. R.3d 6, 24. VII. The foregoing view is accorded more than minimal support by these authorities which unqualifiedly hold, a life tenant's unrestricted authority to sell or convey real estate includes power to encumber the fee, because mortgages are regarded as a conditional or qualified sale. In this regard see Babcock v. Hoey, 11 Iowa 375, 377-378; Stay v. Stay, 201 Ala. 173, 77 So. 699; In re Stannert's Estate, 339 Pa. 439, 15 A.2d 360, 363; McCreary v. Bomberger, 151 Pa. 323, 24 A. 1066, 1067; 1 American Law of Property, section 2.17(e); 5 Page on Wills, Bowe-Parker Revision, section 45.7; 31 C.J.S. Estates § 55, pages 118-119; 96 C.J.S. Wills § 1067c, page 713; 33 Am.Jur., Life Estates, Remainders, Etc., section 247, page 732; and Annos. 92 A.L.R. 882, 889. See also Brenton Bros. v. Bissell, 214 Iowa 175, 183, 239 N.W. 14; Brunsdon v. Brunsdon, 199 Iowa 1099, 1112, 200 N.W. 823; 59 C. J.S. Mortgages § 232, page 302; and 36 Am.Jur., Mortgages, section 205, page 794. But see Burns v. Burns, 233 Iowa 1092, 1095, 11 N.W.2d 461. Finally, as stated in Hamilton v. Hamilton, supra, loc. cit., 149 Iowa 331, loc. cit., 128 N.W. 383: Ordinarily, a mortgage    would be less inimical to the interests of the remainderman than an absolute conveyance. VIII. We are persuaded, and now hold, inherent in testator's will is the plain meaning that there was bestowed on the widow, Agnes McCarthy, an implied power to in good faith encroach upon or invade the corpus of the estate during her lifetime, subject to the condition she may neither waste nor dispose of it by gift or will. Stated otherwise, the will before us, when fairly construed, denotes it was testator's intention that his surviving widow could at any time, in her sole discretion, effect a good faith sale of the property or any part thereof, or in like manner encumber the fee. In that regard the record also clearly reveals the life tenant here acted in good faith, the bona fides of the transaction and use of funds derived therefrom standing above any possible suspicion of waste or fraud. By the same token she acceptably accounted for all money received. We therefore conclude trial court was correct in holding adverse to plaintiff and dismissing his petition.