PYLE
v.
PYLE

Fla. | 1951-06-29
53 So.2d 312 Florida Supreme Court (1951) Positive Treatment
Also reported at: 53 So. 2d 312 · 1951 Fla. LEXIS 1425
Cited by 43 cases

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Synopsis

The Florida Supreme Court reversed a dismissal of a resulting trust claim, holding that a wife can establish a resulting trust when she provides funds from her separate estate for property purchased by her husband and titled in his name. The court also found that the personal representative of the husband's estate was not an indispensable party in this specific case.


Holding

Yes, the wife's allegations sufficiently establish a resulting trust because the presumption of a gift does not apply when the wife provides funds from her separate estate for property titled in the husband's name. No, the personal representative is not an indispensable party in this case because all heirs are parties, and the property, if held in trust, would not be an asset of the husband's estate.


Key Quotes

“where the purchase money of land is paid by one person, and the title is taken in the name of another, the party taking the title is presumed to hold it in trust for him who pays the purchase price.”

Establishes the general rule for resulting trusts.

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Facts & Procedural History

A wife filed suit seeking a resulting trust over property her deceased husband purchased during their marriage, alleging she provided all purchase fun…

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Opinion of the Court
Roberts

ROBERTS, Justice.

The plaintiff-appellant filed suit in the court below seeking to have declared in her favor a resulting trust as to certain property purchased by her deceased husband during his lifetime. The plaintiff named as parties defendant the son of her deceased husband, and the son's wife, and alleged that she and her step-son were the only heirs-at-law of the decedent, who died intestate. The defendants filed a motion to dismiss the bill, the only grounds with which we are here concerned being that (1) the allegations of the bill affirmatively showed a gift by the plaintiff to her deceased husband, and not a resulting trust, and (2) the plaintiff had failed to join as a party defendant the personal representative of the deceased husband's estate. The motion to dismiss was granted by the lower court and, the plaintiff declining to amend further, final decree of dismissal was entered. Plaintiff has appealed from such decree.

On the question of whether or not the allegations of plaintiff's bill sufficiently alleged a resulting trust, the contention of the plaintiff-appellant must be sustained. The plaintiff alleged in her bill that her husband purchased certain property for her use and benefit, that the full purchase price was furnished by plaintiff out of her separate estate, that improvements were constructed thereon with plaintiff's funds, and that title to the property was taken in the name of the husband for convenience only.

The characteristics of a resulting trust have been many times delineated by this court; and it is well settled that where the purchase money of land is paid by one person, and the title is taken in the name of another, the party taking the title is presumed to hold it in trust for him who *314 pays the purchase price. Frank v. Eeles, 152 Fla. 869, 13 So. 2d 216.

It is true, as contended by appellee, that the presumption of a trust does not obtain in those cases where the purchase money is supplied by the husband and the title is taken in the name of his wife or child. The husband and father being under a legal and moral obligation to support such dependents, the conveyance in such cases is "regarded prima facie as an advancement", Smith v. Smith, 143 Fla. 159, 196 So. 409, 410, or, stated differently, "is presumed to be a gift". Foster v. Thornton, 131 Fla. 277, 179 So. 882, 888, citing Hinshaw v. Russell, 280 Ill. 235, 117 N.E. 406.

But in this jurisdiction the rule is otherwise where the wife pays for land out of the proceeds of her own separate estate and the title is taken in the name of the husband. In such case the reason for the exception to the rule fails, and the general rule as to the presumption of a trust applies. Foster v. Thornton, supra; Williams v. Williams, 147 Fla. 419, 2 So. 2d 725.

It must be held, therefore, that the ground of defendant's motion to dismiss first above mentioned was not well taken.

There is likewise no merit to defendant-appellee's contention that plaintiff's bill was properly dismissed for failure to join an indispensable party defendant, to wit, the personal representative of the deceased husband's estate. The plaintiff alleged that her husband died intestate; that she and the defendant Frank L. Pyle are his sole heirs-at-law; that there are no other persons "either as claimants, mortgagors, lienholders or otherwise, who are claiming any interest, right, title, claim or demand in and to" the property here involved. It is admitted that proceedings for the administration of the estate have not been instituted and that there is no such person as the "personal representative" of the decedent's estate.

So the question actually resolves itself into this: Was the plaintiff required to institute administration proceedings and obtain the appointment of a personal representative before bringing her suit to enforce a resulting trust? We do not think so. The personal representative is regarded as the trustee or agent, appointed by law, for the benefit and protection of the heirs and the creditors of the decedent. All of the heirs are parties to the instant suit, so that there is no necessity for his appointment to protect their interests. Nor is his appointment and joinder necessary in order to protect the interests of the creditors of the decedent. Property held in trust does not become, on the death of the trustee, assets of his estate. 21 Am.Jur., Executors and Administrators, Sec. 202, page 483. If, then, the plaintiff is able to establish by clear and satisfactory proof that the property in question was held in trust for her by her deceased husband, his creditors would not ordinarily be entitled to enforce their claims against such property. Scott on Trusts, Sec. 459, page 2305; Restatement of Trusts, Sec. 313, page 947.

We are cognizant of the rule laid down in Russ v. Blackshear, 88 Fla. 573, 102 So. 749, and cited by appellee, that "when a wife permits her husband to hold the record title to her realty, or permits him to use her money as his own to invest it in his own name, and thereby obtain credit on the faith of his being the owner of the same, she is estopped in equity to assert her title thereto as against one extending credit to the husband, in reliance on such ownership." But the plaintiff here alleged that there were no other persons "either as claimants, mortgagors, lienholders or otherwise, who are claiming any interest, right, title, claim or demand in and to" the subject property, and this allegation must be deemed to be admitted by the motion to dismiss.

And even if there were such a creditor, he is not an "indispensable party" to the instant suit, since the controversy can be resolved without prejudicing his rights to establish his claim against the trust property in separate proceedings for that purpose. See Coleman v. Mulligan, Sup., 66 N.Y.S.2d 696; Pepple v. Rogers, 104 Fla. 462, 140 So. 205, 211; 67 C.J.S., Parties, § 42, page 965.

*315 The grounds stated in defendant's motion to dismiss, other than the two mentioned in the first paragraph of this opinion and here argued, were likewise insufficient to justify a dismissal of plaintiff's bill; and, indeed, the defendant does not here contend that they were legally sufficient.

For the reasons stated, the final decree of dismissal is reversed and the cause remanded for further proceedings.

Reversed and remanded.

SEBRING, C.J., and CHAPMAN and ADAMS, JJ., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By (22 total)

  • Davis v. Rosman Charles Dieujuste, 496 So. 2d 806 (Fla. 1986)
    …rties’ joint undertaking to provide for the needs of the family. See, e.g., Ball v. Ball, 335 So. 2d 5 (Fla.1976) (special equity is shown where all consideration for entireties property supplied by one spouse from independent source); Pyle v. Pyle, 53 So. 2d 312 (Fla.1951) (title taken jointly upon purchase by husband may be viewed as advancement on support obligation). If one party seeks to establish a special equity in the other party’s share, this should be claimed in the dissolution proceeding. If the m…
  • State v. Zuckerman-Vernon Corp., 354 So. 2d 353 (Fla. 1977)
    …re. We are not persuaded by the taxpayer’s argument that a resulting trust arose out of the transaction. A resulting trust arises where one party pays the consideration for purchase of realty, but title is taken in the name of another. Pyle v. Pyle, 53 So. 2d 312 (Fla.1951); Martin v. Wilson, 115 So. 2d 573 (Fla. 1st DCA 1959). In the instant case, the evidence reflects that Bayshore purchased the property with its corporate funds. The taxpayer’s guarantee of Bay-shore’s mortgages on the property cannot be e…
  • Luisa Devers Abreu v. Prospero Amaro and Josefa Amaro, 534 So. 2d 771 (Fla. 3d DCA 1988)
    …holding legal title was to hold the property in trust for the payor. On such facts, a resulting trust is presumed as a matter of law. Smith v. Smith, 143 Fla. 159, 196 So. 409 (1940); Frank v. Eeles, 152 Fla. 869, 13 So. 2d 216 (1943); Pyle v. Pyle, 53 So. 2d 312 (Fla.1951). The burden is then shifted to the transferee to show that the money was a gift or a loan. Restatement (Second) of Trusts § 458 (1959). However, where title is taken by the natural object of the payor’s bounty, a contrary presumption aris…

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