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Smart Summary

Factual and Procedural Background

Floyd Beasley and others filed suit against George Beasley, Sr., and others seeking a construction of the will of Rufus Beasley, deceased. The dispute centered on the validity and effect of a power of appointment contained in the will. The Chancery Court of Smith County, presided over by Chancellor A.F. Officer, dismissed the complainants' bill. The complainants appealed the dismissal. The Court of Appeals, with Judge Howell presiding, reviewed the case and held that the power of appointment was valid, affirming the decree of the lower court.

Legal Issues Presented

  1. Whether the power of appointment contained in the will of Rufus Beasley was valid and effective.
  2. Whether the exercise of that power by Cason Beasley in his will conveyed fee simple ownership of the land to George Beasley.

Arguments of the Parties

Complainants' Arguments

  • Cason Beasley held only a life estate in the land under Rufus Beasley's will.
  • The power of appointment in the will was not clear, plain, and unambiguous, rendering it invalid.

Defendant's Arguments

  • Under a proper construction of Rufus Beasley's will, George Beasley owns the land in fee simple.
  • The power of appointment granted to Cason Beasley was valid and was properly exercised by him in his will.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Guarantee Trust Co. v. Jones, 103 Tenn. 245, 58 S.W. 219 Recognition that a power of appointment is a discretionary authority enabling a donee to dispose of property for the benefit of others and is distinct from ownership. The court relied on this case to affirm that the sons held only a power of appointment, not a trustee role, and that such a power can override estates in fee.
Bridgewater v. Turner, 161 Tenn. 111, 29 S.W.2d 659 Limits on the exercise of powers of appointment, specifically that appointment powers to children do not extend to grandchildren. The court cited this case to support proper construction of powers of appointment according to the donor's intent and limitations.
Hodges v. Stegall, 169 Tenn. 202, 83 S.W.2d 901, 100 A.L.R. 339 A broad testamentary power of appointment can authorize unequal division and sale of property among heirs. Used to illustrate that the donee of a power can determine manner and proportion of distribution, supporting validity of the power in question.
Williams v. Coldwell, 172 Tenn. 214, 111 S.W.2d 367, 114 A.L.R. 941 Life tenant may be vested with a limited power of disposition, including power of sale, which is valid if exercised within restrictions. The court applied this principle to conclude that the testator's sons had a valid power to sell or devise their share to any of the testator's children.

Court's Reasoning and Analysis

The Court began by examining the language of Rufus Beasley's will, which granted his sons a life estate in the farm and expressly provided that they could sell or devise their shares to any of the testator's children but not to others. The court interpreted this as a clear and unambiguous power of appointment. The Chancellor had dismissed the bill based on a memorandum construing the will in favor of the defendants, and the Court of Appeals agreed with that interpretation.

The court referenced authoritative legal definitions and principles concerning powers of appointment from American Jurisprudence and Corpus Juris, emphasizing that such powers do not create an estate or interest in the donee but rather a liberty to dispose of property vested in another. The court underscored that when the intention to create a power is plain, it must be given effect regardless of technical formality.

Further, the court reviewed prior Tennessee cases that clarified the nature and limits of powers of appointment, including the ability of donees to exercise discretion in disposition and the requirement to construe the donor's and donee's wills together. Applying these principles, the court found no error in the Chancellor's conclusion that the power was valid and properly exercised by Cason Beasley in his will, thereby vesting fee simple ownership in George Beasley.

Holding and Implications

The decree of the Chancery Court dismissing the complainants' bill is affirmed.

This decision confirms the validity and enforceability of the power of appointment contained in Rufus Beasley's will, as exercised by Cason Beasley. The effect is that George Beasley holds fee simple ownership of the farm. The appellants are ordered to pay the costs. The opinion does not establish new precedent beyond applying existing principles to the facts of this case.

BEASLEY et al. v. BEASLEY et al.

Wills.

Under will devising farm to testator's sons for life and providing that sons should not be prevented by will from selling or willing their respective shares to any of testator's children, an intention was clearly expressed that testator's sons should have power to sell or devise by will their share in farm to any of testator's children, as against contention that power was not clear, plain and unambiguous and was therefore invalid.

FROM SMITH.

HOWELL, J.

The bill in this case was filed by Floyd Beasley and others against George Beasley, the parties being the children and heirs at law of Rufus Beasley, and prays a construction of the will of Rufus Beasley probated in the County Court of Smith County, Tennessee, on April 1, 1912, especially with reference to the validity and effectiveness of a power of appointment contained in the will.

The case was heard by the Chancellor on oral testimony and a decree entered dismissing the bill, after the filing of a written memorandum construing the will in favor of the defendant.

The complainants have properly perfected an appeal to this Court, and have filed assignments of error.

The part of the will about which this disagreement arose is as follows: ". . . At the death or remarriage of my said wife, the land is to belong to my sons Sherman, Cason and George during their natural lives, at their death to belong to their children. Should either of them die leaving no children his share is to belong to all of my children or their descendants. Though this clause shall not prevent them or either of them from selling or willing his share in said land to any one or more of my children but not to any other person. . . ."

The land mentioned was a farm and the home place of the testator Rufus Beasley. The testator had divided the farm among his three sons, Sherman, George, and Cason Beasley and Cason Beasley who died in 1949 by his will gave his part of the land of his father Rufus Beasley to his brother George Beasley, the material part of his will being as follows: "By virtue of authority vested in me by the Will of my Father, Rufus Beasley, which is probated in the office of County Court Clerk at Carthage, Tennessee, in Will Book `E' pages 260-262, I, will, give and devise to my brother, George Beasley, the tract of land that was devised to me by my father in his said Will during my lifetime with the power to sell or will to any of my Father's children, and my said brother, George Beasley, is a son of my Father. . . ."

It is the contention of the complainants that by the will of Rufus Beasley, Cason Beasley took only a life estate in the land involved, and it is the contention of the defendant that under a proper construction of the will of Rufus Beasley the complainants have no interest in this land and that George Beasley, the defendant, is the owner of same in fee simple by reason of the power of appointment in Cason Beasley and the exercise of this power by him in his will. Cason Beasley's wife predeceased him and they had no children.

The question, therefore, is whether or not there is a valid power of appointment in the will of Rufus Beasley which was exercised by Cason Beasley. The Chancellor held that there was a valid power of appointment which was exercised strictly according to its terms and that defendant George Beasley was the rightful owner of the farm.

The complainants insist that the alleged power of appointment in the will of Rufus Beasley is not clear, plain, and unambiguous and is therefore invalid.

A power of appointment is defined in Vol. 41 American Jurisprudence in paragraph 2 on page 806 as follows:

"A power over property is defined as a liberty or authority reserved by, or limited to, a person to dispose of real or personal property for his own benefit, or for the benefit of others, and operating on an estate or interest, vested either in himself or in some other person; the liberty or authority, however, not being derived out of such estate or interest, but overreaching or superseding it, either wholly or partially. Such a power has also been defined as an authority enabling one person to dispose of the interest which is vested in another. It has been defined by statute as an authority to do some act in relation to lands, or the creation of estates therein, or of charges thereon, which the owner, granting or reserving such power, might himself lawfully perform. Both real and personal property may be subjected to a power of appointment.

"A power of appointment is not an absolute right of property nor is it an estate, for it has none of the elements of an estate. The authority given to the donee of a power of appointment does not vest in him any estate, interest, or title in the property which is the subject of the power. A general power of disposition existing as a power does not imply ownership; in fact, the existence of such a power, as a technical power, excludes the idea of an absolute fee simple in the person who possesses the power, although where the power is for his own benefit, he has the means of acquiring such interest, right, or title; and in all cases, by the execution of the power, the possession, right, title, or interest is altered or divested. A power to convey land creates in the donee thereof no right, title, or interest in the property to be conveyed. Property that passes by power of appointment belongs to the donor of the power and not to the donee. Whether a power of appointment is or is not exercised, the property that was subject to appointment is not subject to distribution as part of the estate of the donee."

In the same volume, 41 American Jurisprudence, Sec. 6 on page 810, it is said: "When the intention to create a power is plain it should be given effect; no technical form of words is necessary. . . ."

And in Section 7 on page 811 is the following:

"According to the weight of authority, a testator may, by testamentary instrument, authorize a designated person to change the effect of the testator's will or to make a disposition of the testator's estate different from that provided for in the will. Such an authorization is held to confer a power of appointment. . . ."

And in Section 9 on page 812 it is said: "An instrument, such as a deed or will, creating a power of appointment is to be interpreted so as to ascertain the intention of the donor and to give it effect unless some rule of law prevents. Effect should, if possible, be given to every word or clause in the instrument, so long as they are not inconsistent with the general intent of the instrument as a whole. A will conferring a power of appointment by will, and the will of the donee exercising such power, must be construed together."

In 49 Corpus Juris, page 1277, paragraph 92, is the following:

"Effect of Existence of Power on Other Rights and Interests in Property. A power is ineffective until it is executed. Other rights and interests in the subject matter of a power are unaffected by its mere existence, and they may vest or take effect subject to the power, although liable to destruction or divestment upon its execution.

"Objects of power have, by virtue merely of the existence of the power, no contingent interest or estate in the subject matter pending its exercise."

In the case of Guarantee Trust Co. v. Jones, 103 Tenn. 245, 58 S.W. 219, the will of Mrs. Elizabeth Jones contained the following clauses: "`. . . The other three-fifths I divide between my grandchildren, giving the children of my son, J.W. Jones three-tenths, and to children of my son H.F. Jones three-tenths; my two sons, J.W. H.F. Jones, to have the power to sell or convey, by deed or otherwise, or to dispose of the land in any way they see proper, for the benefit of their children; they, my two sons, being the judges of what is the best for their children. That is, my son J.W. Jones has the power to dispose of the land I give to his children, and my son, H.F. Jones has the power to dispose of the land I give his children. . . .'"

In the opinion the Supreme Court said:

"It is plain, we think, from the terms of the will, that these sons, H.F. Jones and J.W. Jones, were not constituted trustees for their children, but held a mere power of appointment, which they were authorized to exercise at their discretion. `In some cases the donor makes a direct gift to one party, but subjects the gift to the discretion or power of some previous taker or other party.' 1 Perry, Trusts, Section 250. `A power of sale may override estates in fee.' 18 Am. Eng. Enc. Law, 907. `A donee with general power of appointment is practically the owner.' Id., 916. See Lawrence's Estate, 136 Pa. at page 354, 367, 20 A. 521, 11 L.R.A. 85, [20 Am. St. Rep. 925]; Beck's Appeal, 116 Pa. 547, 9 A. 942; Hoxie v. Finney, 147 Mass. 616, 18 N.E. 593; Kull v. Kull, 37 Hun. 476, [ 37 N.Y. 476.] `It is obvious that every power of appointment is, strictly speaking, a power of revocation; but still there is a striking distinction between estates actually limited in a settlement with a power of revocation, and estates limited in default of the exercise of a preceding power of appointment. In the first case the estates are vested, subject to be revoked or defeated by the exercise of the power.' . . ."

In the later case of Bridgewater v. Turner, 161 Tenn. 111, 29 S.W.2d 659, 660, Chief Justice Green said: "In this case the testator's wife undertook to exercise the power of appointment by will unequally among such of her children as were then living and to some of her grandchildren. The court held the appointment to the children good but the appointment to the grandchildren bad, because the power to appoint to children does not include the power to appoint to grandchildren. Jarnagin v. Conway, 21 Tenn. 50. That portion of the property which she undertook to appoint to the grandchildren was treated as though no appointment had been made respecting them, and it was divided in equal proportions among the children and the representatives of deceased children."

In the case of Hodges v. Stegall, 169 Tenn. 202, 83 S.W.2d 901, 903, 100 A.L.R. 339, the Supreme Court said: "By his will G.W. Hodges provided that the home farm of 220 acres descend to his heirs in manner and proportion as his wife might by will or otherwise direct. The donor expressly empowered the donee to determine the manner as well as the proportion that should pass to his heirs. Under that broad power the donee could make an unequal division and could direct a sale of the smaller portions for purposes of distribution to the appointee heirs."

In the case of Williams v. Coldwell, 172 Tenn. 214, 111 S.W.2d 367, 370, 114 A.L.R. 941, it is said:

". . . Construing the will as a whole and giving effect to all of its provisions, as is required, the conclusion is inescapable that Sarah Ann Terry, as life tenant, was vested with a limited power of disposition.

"In Page on Wills, Section 695, it is stated:

"`A power of sale of the remainder may be given to one to whom a life estate in the property, covered by the power, is devised. This power may be given expressly. Such a power may also be implied from a gift to one for life, and a gift over of the unexpended portion at the death of the life tenant to another.'

* * * * *

"Where limited power of sale is conferred on the life tenant by the will, it cannot be supposed that a sale made in the exercise of the power would be void. It is apparent that when the power of disposition is exercised by the life tenant within the restriction, limitation, or contingency imposed, that the vendee of the life tenant would take a valid title to the property so conveyed."

In this case we are of the opinion that it was the intention of the testator clearly expressed, as shown by the part of the will quoted above, that his sons should have the power to sell or devise by will their share in the testator's lands "to any one or more of my children, but not to any other person."

We find that there is no error in the decree of the Chancellor.

The assignments of error are overruled and the decree of the Chancery Court is affirmed. The appellants will pay the costs.

Felts and Hickerson, JJ., concur.

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BEASLEY v. BEASLEY
(Jun 7, 1950)