Affirming.
Did the substituted executor and trustee have power under the will of Myrtle L. Keyser, deceased, to sell and convey good title to the real estate involved?
By clause 5 of her will, Myrtle L. Keyser devised the residue of her estate to the First National Bank of Pikeville as trustee with directions to dispose of so much of the residue as might be necessary to satisfy the provisions of the first clause of her will, which was a provision for payment of indebtedness and burial expenses, and if a sufficient amount was not realized from this residue to sell a sufficient amount of the farm devised by clause 4 to satisfy any remaining indebtedness or obligations of her estate.
By the fourth clause of the will she devised the farm, of which the tract here involved is a part, to her son Charles M. Keyser, Jr., for life subject to certain conditions not herein involved.
By the sixth clause she provided as follows: "Sixth: I nominate and appoint The First National Bank of Pikeville, as executor of my estate, as well as trustee *Page 640 aforesaid, and if said The First National Bank of Pikeville fails to qualify or resigns or is removed in either of such capacities, then all of the rights and powers entrusted to it under this will shall pass to and be vested in a trustee or a succeeding trustee, as the case may be, to be named by the Judge of the Pike Circuit Court of Pike County, Kentucky."
The First National Bank of Pikeville declined to act either as executor or trustee. Thereupon, the son and granddaughter, as sole surviving heirs and devisees under the will, filed application for the appointment of an executor and trustee pursuant to the provisions of Item 6 above. Appellee, Sidney Trivette, was named as substitute executor and trustee.
After making the will above and before she died the testator made an inter vivos gift by deed in fee simple to her son of a part of the farm devised to him by clause 4 of the will above. After her death it developed that there was not sufficient residue of the estate, exclusive of the farm, part of which was deeded to her son and devised also in clause 4, to satisfy the proven indebtedness against the estate. It, therefore, became necessary to sell a portion of this farm for the purpose of satisfying the excess indebtedness. To satisfy this deficit the substituted executor-trustee and the son, Charles M. Keyser, Jr., agreed to sell the portion of the farm embraced in the deed from the testatrix to the son in conjunction with an adjacent tract. They agreed to apportion the net proceeds of the sale, the son agreeing to apply a sufficient amount out of his part of the net proceeds of the sale to satisfy any excess indebtedness of the estate. There is no complaint here about that apportionment. Through a real estate concern this property was sold to Freeland Vanhoose, appellant here, and the executor-trustee and son executed and delivered deed therefor.
It appears that this is a more or less friendly action instituted for the purpose of determining whether or not the substituted executor-trustee had power to sell and convey, and to determine as to whether or not the appellant obtained a good title. The action was instituted by Dorothy Ann Keyser Brooks, individually, and as next friend of her two infant children, under the declaratory *Page 641 Judgment Act. Civil Code of Practice, sec. 639a-1 et seq. She sought a declaration of the rights of herself, as devisee in the remainder for life and of her two infant children and any unborn issue of her body as contingent devisees in the remainder of the fee with respect to all of the property devised by clause 4, and particularly to the portion sold to appellant.
The court rendered judgment confirming and approving the sale. Appellant prosecutes this appeal as purchaser of the property involved in order to test the correctness of the lower court's ruling and the validity of the sale thus approved.
It will thus be seen the primary question is: Did the substituted executor-trustee have the power to sell and convey a good title to the portion of the property belonging to the estate and embraced within the provisions of clause 4 of the will?
Appellant first calls our attention to Keel v. First National Bank,
Many of the earlier cases in this court, holding that the power to sell passed to a succeeding or substituted representative under the provisions of the statute, were differentiated and distinguished, and although the Keel case has been cited and discussed and the reasoning supporting it somewhat refined in later decisions, yet, the doctrine there announced, and the application of that doctrine to the facts of that case have not been modified or retracted.
In the early case of Haggin v. Straus,
In the later case of Penn v. Pennsylvania Company, et al.,
The Penn case has been quoted and cited with approval and followed in the two later cases of Anderson v. Ratliff,
In the Tatman case there appears to be even stronger evidence of the personal confidence reposed in the named trustee. There the testator named two individuals whom he designated as "my friends" and vested them with wide discretionary powers. Yet, we held that the powers thus entrusted to the named "friends" by the testator in the Tatman case passed to substituted representative. In an attempt to distinguish the Keel case on the ground that the beneficiary of the spendthrift trust was dead at the time of the attempted sale, the court said (
The Keel case involved only the power to sell as deemed to the best interest of the estate. That power the court upheld to be personal and exclusive to the named trustee and not to have passed to a substituted representative. In holding that the power to sell did pass, in effect the court overruled the Keel case. Yet, by implication the Keel case is upheld.
It will be noted then that there is a variance in the rules announced. In the Keel case the power does not pass to a succeeding or substituted representative unless that intention is clearly expressed in the will. In the Penn case and the subsequent ones above cited, the power passes unless expressly prohibited by the will.
KRS
This provision empowers the administrator with the will annexed to exercise all powers and authority which might be performed by the executor. But it might be added that the quoted section above gives to the administrator with the will annexed only such power as the executor had. Thus it will be seen that the power derived from the will passes under the statute above. It logically follows then that it requires an express prohibition or at least a declared intention in the instrument creating the power in order to prevent its passing. The rule in the Keel case that the power does not pass unless that intention is clearly expressed in the will, is in conflict with the above. We reaffirm and adopt the rule as laid down in the Penn case that the power passes unless there is an indication otherwise or express prohibition in the will. In so far as the Keel case conflicts herewith it is overruled.
The collateral question raised is whether or not a judgment in this case would be binding against the unborn and unknown heirs of Charles Keyser, Jr., Dorothy Ann Brooks or Myrtle Keyser. The answer may be found in Wayne v. Brumley,
The judgment is affirmed. *Page 645