Opinion ID: 901800
Heading Depth: 1
Heading Rank: 3

Heading: Kappenmann

Text: [¶ 60.] This Court has already concluded in In re Kappenmann's Estate that a power of sale is not repugnant to a specific devise. 82 S.D. 91, 97-98, 141 N.W.2d 780, 783 (1966) (citing 5 Bowe, William J. and Parker, Douglas H. Page on the Law of Wills, § 45.10). [15] Our citation to Page on the Law of Wills specifically explains, [w]here an express power of sale is given, but the purpose for which it is to be used is not specified, it is held to be a power of sale in order to pay the proceeds to the devisees in lieu of the devise, and, therefore, such a power of sale is not repugnant to the devise of the property in fee. Id. It should be further emphasized that the exact question in Kappenmann, is the question before the Court today: whether an executor may sell specifically devised real property, under a power of sale in a will ]in our case, the analogous power in statute], where such sale is not necessary to pay debts and cost of administration, and where there is no directive in the will to sell such devised property.  82 S.D. at 93, 141 N.W.2d at 781 (emphasis added). Kappenmann resolved this question holding the property could be sold because the vesting of the property was only conditional, and the specific devise did not defeat the general power of sale. Id. at 97-98, 141 N.W.2d at 783. [¶ 61.] This Court attempts to distinguish Kappenmann and the cases hereinafter cited in this dissent noting that the will in Kappenmann contained a power of sale and Glenn's will did not. Wayne, however, was granted an analogous power of sale by statute, and this Court offers no explanation how the statutory power to sell without notice is different than the power of sale considered in Kappenmann. A careful reading of Kappenmann establishes that the statutory power of sale is not materially different than the power granted by the will in Kappenmann. The statutory power and the power in the will are analogous because: (1) Kappenmann construed a will  where there [was] no directive in the will to sell such devised property,  82 S.D. at 93, 141 N.W.2d at 781 (emphasis added) (citations omitted); and (2) there is no material difference in the UPC power of sale statute and the pre-UPC power of sale statutes construed in Kappenmann. Compare SDCL 29A-3-715 and 29A-3-711 (granting exercise of statutory power of sale without notice, hearing or order of the court) with SDC 1960 Supp. §§ 35.1501 (SDCL 30-22-6) and 35.1527 (SDCL 30-22-1) (both repealed, 1995) (governing power of sale in a will and power of sale when not provided in the will). Because the wills and statutes construed in Kappenmann and this case are silent concerning the sale of specifically devised property, pre-UPC case law is apposite. [16] Moreover, the majority simply fails to acknowledge the only difference in the powers of sale is that before the UPC was adopted, personal representatives did not possess a power of sale unless it was included in the will. After the UPC, that power is granted unless the will provides otherwise. Compare SDCL 30-22-1 (repealed 1995) (authorizing power of sale when given in the will) with SDCL 29A-3-715(a)(23) (authorizing power of sale when not given in the will). [¶ 62.] The Court, however, suggests that other courts recognize a distinction between a testator granting the power of sale as opposed to a statute, and in such cases the specific devise must be distributed in kind. Supra ¶ 23 (citing In re Estate of Polly, 511 So.2d at 756 and In re Estate of Gamble, 183 So.2d 849). Neither case supports the Court's view. Polly is inapplicable because: no statutory power was even considered; although the will in Polly contained a power of sale, it did not concern the property at issue; and Polly construed a Florida statute that, like our pre-UPC law, only allowed the exercise of a power of sale when it was provided by a will. Thus, the issues were not the same, Gamble is distinguishable, and it supports this dissent. See supra n. 14. [¶ 63.] The Court further suggests that making a specific devise subject to a power of sale may threaten intended specific distributions. The Court goes so far as to propose a red herring that a personal representative could sell a family heirloom [or land that had been in the family for generations] that was specifically devised . . . as long as he or she was acting reasonably for the benefit of the estate. Supra ¶ 26. This suggestion simply fails to give effect to the language of SDCL 29A-3-715. Although the Court pays lip service to the statute's limiting language that a personal representative would have to prove such sales of family heirlooms or land were necessary for the estate, such a finding could not be made. Obviously, under the facts in the Court's examples, it would be unnecessary to sell such property to administer the estate. [¶ 64.] Testators often give powers of sale that affect specifically devised property without making specific reference to the property. A New York case exhaustively explained why such powers are given and why the benefit to the estate protection is sufficient, even when the devise is for a spouse and children. Had the intention of the testator been to restrict the power of sale [as is permitted under SDCL 29A-3-715] to the necessities of the trust [for his wife and children], he would have undoubtedly so expressed himself, or would at least have given the power in connection with the trust, and not left it to a later and entirely disconnected provision of his will wherein he gave his personal representatives the power to sell and dispose of his real estate for the best interests of his estate. Good reasons suggest themselves why the testator might well have wished to confer upon his personal representatives a general power of sale for the purpose of a distribution of his estate among the residuary legatees and devisees. On the death of testator's wife the will gave, devised and bequeathed all of the trust estate unto the children of the testator then living and to the issue of any of them who might then be deceased in equal shares per stirpes and not per capita. In case any such taker should be an infant, the acquiring of the title of such would involve a complicated and expensive court proceeding, which the testator might well have wished to avoid. He might also have foreseen discord among the residuary owners and the necessity of resorting to an expensive action in partition with attendant delay in order to obtain a sale of the real property and a division of the proceeds among those entitled thereto. Indeed, it appears that between the date of the making of the contract of sale and the time therein fixed for the passing of title, one of the testator's children did actually commence an action in the Supreme Court for a partition of the real property of which decedent died seized, including the contracted premises. Thus the possible fears of the testator that all would not be harmonious among those who would eventually succeed to his real property seem justified by succeeding events. By the power of sale in the will the testator provided a way for the disposal of his estate by his trusted representatives at a nominal expense and thereby sought to save long delay and considerable expense which might otherwise result. Such are the reasons which usually give birth to powers of sale in wills. Certain it is that the testator in no way confined the exercise of the power of sale to the execution of the trust, but on the contrary made the same in the most general way for the benefit of his whole estate. Hutkoff v. Winmar Realty Co., 211 A.D. 726, 728-729, 208 N.Y.S. 25 (N.Y.App.Div. 1925). [¶ 65.] Missouri provides another reason why the power of sale may prevail. In Estate of Basler v. Delassus, 690 S.W.2d 791 (Mo.1985), the specific devisees objected to the sale of the property under a power of sale. The Missouri Supreme Court reversed a lower court's holding that the real property in issue passed from the testatrix to the four devisees and that the personal representative had no authority to convey it elsewhere[.] Basler, 690 S.W.2d at 793. In rejecting that proposition, the Missouri Supreme. Court explained that joint devisees do not have a right to specific enjoyment since any one of them could demand partition. Id. Thus, good reasons exist why powers of sale may be exercised over specifically devised property. Such powers are given to avoid problems relating to discord among heirs, to ease the disposition of property when minors are involved, to thwart expense and complications of partition proceedings, to avoid delay, and to benefit the entire estate.