Blackmon v. Battcock, 69 N.Y.2d 735 (1987)
An agreement not to change a will does not, by implication, prohibit the testator from creating Totten trusts or making inter vivos transfers unless the agreement explicitly states such a restriction.
Summary
Elizabeth Battcock agreed in 1971, as part of a settlement of her deceased husband’s estate, not to change her 1969 will. Subsequently, she created Totten trust accounts for beneficiaries not named in the will. Her daughter and grandchildren argued that this violated the 1971 agreement. The Court of Appeals held that the agreement, which only prohibited changes to the will and did not expressly forbid the creation of Totten trusts or other lifetime transfers, did not impliedly restrict Battcock’s actions during her lifetime. The court emphasized that restrictions on a testator’s ability to dispose of property must be clearly and unambiguously stated.
Facts
Elizabeth Battcock’s husband left her a minimal inheritance in his will, with the bulk going to their children. Elizabeth elected against the will and settled with the estate, receiving a portion of the assets. As part of the settlement, she agreed to “leave intact and without change” her 1969 will, which bequeathed her estate to her children or grandchildren. The settlement agreement made no mention of Totten trusts or inter vivos transfers. After her son’s death, Elizabeth created Totten trust accounts for various charities and executed new wills excluding her daughter and grandchildren.
Procedural History
Decedent’s daughter and grandchildren sued, arguing the Totten trusts violated the 1971 agreement. The Supreme Court, later transferred to Surrogate’s Court, granted summary judgment to the Totten trust beneficiaries, holding that the Statute of Frauds precluded implying a prohibition against Totten trusts. The Appellate Division reversed, implying a promise not to create Totten trusts. The Court of Appeals granted leave to appeal.
Issue(s)
Whether an agreement not to change a will implies a prohibition against the testator creating Totten trusts or making other inter vivos transfers, when the agreement is silent on such matters.
Holding
No, because an agreement not to change a will does not implicitly restrict the testator from creating Totten trusts or making inter vivos transfers unless such restrictions are expressly stated in the agreement.
Court’s Reasoning
The Court of Appeals emphasized that a will is typically revocable, and testators retain the right to dispose of property during their lifetimes. While individuals can surrender their power of revocation by agreement, such renunciations are strictly scrutinized, requiring clear and unambiguous evidence. In this case, the 1971 agreement only restricted changes to the will itself and was silent regarding other forms of property alienation. The court refused to imply a prohibition against Totten trusts, stating that it would constitute an unwarranted judicial alteration of the agreement. “In the absence of an express provision in the agreement or factors far more substantial within the four corners of the settlement agreement itself from which a judicial inference could comfortably and properly be drawn, courts should not innovate for parties after the fact.” The court also noted that, similar to contracts to establish a trust, a promise to refrain from creating trust accounts must be in writing to satisfy the Statute of Frauds. The court distinguished the case from joint will cases, where inconsistent dispositions defeat the mutuality of benefits. Since the agreement didn’t limit lifetime gifts or transfers, the decedent retained the right to create the Totten trusts.