Court Opinion

ID: 8311621
Source: CourtListenerOpinion
Date Created: 2022-10-17 15:50:01.250685+00
Date Added: 2024-06-11T16:44:45.040970
License: Public Domain

GRIBE, Circuit Justice.
This annuity being the first and only charge on the whole estate, real and personal, the widow may have it satisfied out of either or both, at her election. But if paid in the first place out of the personalty, will not equity so marshal the assets as to substitute the legatee’s to the annuitant’s security on the realty? — or, what would amount to the same thing, order that the annuity be paid in the first place from the rents and profits of the realty? We must observe that the complainants claim as heirs, not as devisees; they are not objects of the testator’s bounty. In such a case if a creditor, by bond or covenant having a right to satisfaction out of both, be paid out of the personal assets, so as to leave nothing to satisfy the general legacies, equity will not marshal the assets and pay the legacy out of the land devised; nor even, it is said, against a residuary devisee of realty. But the heir is not so favored. As against him the court will so marshal the assets, that the general legatee shall be substituted to the right of bond debtors against the realty, to the extent to which the personal fund has been diminished, by Ms election of his satisfaction out of it. It is settled, also, that where one legacy is charged both on realty and personalty, and the others are not, if the personal estate be insufficient to pay all the legacies, a court of equity will marshal the assets; and if the legacies charged on the real estate are paid out of the personalty, it will substitute the legacies not so charged to that amount, as against the realty. The courts also have in some instances compelled legatees whose legacies were charged on real estate, to resort to this estate for payment. Ram, Assets, c. 28, § 3, and cases cited. These principles dispose of the case. As against heirs (the complainants in tMs case), the general legatees have a right to require that the annuity be satisfied out of the rents, or by sale of the realty, and so far as the personalty has been applied to the payment of this annuity, they have a right to be substituted against the realty. The taxes which the executors are ordered to pay for- the widow are not made a charge on the realty, and must therefore be charged to the account of the personalty. Decree accordingly.