FUTURE INTERESTS-POWERS-LEGAL CONSEQUENCES OF A LIFE ESTATE WITH A POWER OF DISPOSITION UNDER THE NEW YORK TYPE POWERS STATUTE

Testatrix devised certain property to her husband to be used and enjoyed by him with the right to sell and dispose of same and use so much thereof, either principal or income, as he may desire during his lifetime.\u27\u27 Any property or the proceeds thereof remaining at his death was to be distributed equally to named takers, children of the testatrix. Successors of the remaindermen brought an action for ejectment and to quiet title against persons claiming under conveyances from the life tenant, the plaintiffs contending that these conveyances were made without consideration and could not operate to cut off the remainder. Section 266 of the applicable Oklahoma statute, part of a statutory system of powers, provided: Every power of disposition is deemed absolute, by means of which the holder is enabled in his lifetime to dispose of the entire fee, in possession or in expectancy, for his own benefit. The district court found the will created a life estate with a power of disposition and that conveyances by the life tenant pursuant to the power operated to extinguish the rights of the remaindermen. On appeal, held, affirmed. The life tenant\u27s power was conditional, but the statute raised a legal presumption in favor of the validity of conveyances executed under the power, even where they were without evidential support of consideration. Ruby v. Bishop, (10th Cir. 1953) 207 F. (2d) 84