Allaun v. First & Merchants National Bank

56 S.E.2d 83, 190 Va. 104, 1949 Va. LEXIS 265
CourtSupreme Court of Virginia
DecidedNovember 21, 1949
DocketRecord 3526
StatusPublished
Cited by15 cases

This text of 56 S.E.2d 83 (Allaun v. First & Merchants National Bank) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allaun v. First & Merchants National Bank, 56 S.E.2d 83, 190 Va. 104, 1949 Va. LEXIS 265 (Va. 1949).

Opinion

Gregory, J.,

delivered the opinion of the court.

A suit was instituted in the Circuit Court of Powhatan county by the First and Merchants National Bank of Richmond, Executor of the Will of Fenton F. Finch, deceased, against Sheltering Arms Hospital, Inc., et als., for the purpose of seeking the advice of the court in respect to certain provisions of the will of Fenton F. Finch who had died on February 26, 1947, and whose will had been admitted to probate in the clerk’s office of the Circuit Court of Powhatan county. It was there that the complainant qualified as executor.

Among the defendants to the bill of complaint were the three children, sole heirs at law of Fenton F. Finch, deceased. They are Anne Finch Allaun, Maxine Finch Tydings, and Elizabeth Finch Tabler. Elizabeth Finch Tabler did not contest the suit.

*107 After the answer of Anne Finch Allaun and Maxine Finch Ty dings had been filed the complainant moved that it be stricken, and by decree entered on September 27, 1948, the answer was stricken as being insufficient in law.

- The averments of the answer were that the provisions for a trust for the benefit of Sheltering Arms Hospital, Inc.; Masonic Home of Richmond, a corporation; Home for Incurables of Richmond, a corporation; Protestant Episcopal Church Home, Inc.; Crippled Childrens Hospital, a corporation, and to the white poor of Powhatan county, are unreasonable, contrary to public policy, and of no legal effect.

Other averments of the answer challenge the legality of two certain deeds made by Finch conveying property in remainder in Powhatan county and in the city of Richmond, respectively, to trustees for the benefit of certain churches. The preceding estates having terminated, the remainders are now effective, if valid.

The court, in striking the answer, by its decree held that the will of Fenton F. Finch established a valid charitable trust and that the appellants have no interest in the real estate conveyed under the deeds. The court also reserved for future determination the question as to whether the trust should be terminated before the end of one hundred and twenty-five years, which was stipulated by the testator, and whether the remainders under the deeds were valid. The court was of the view that the appellants had no interest in the subject of the litigation, and withheld decision on the questions. The will is set forth at the end of this opinion.

It will be noted from reading the will that the testator devised and bequeathed all of his property, real and personal, to be held in trust for one hundred and twenty-five years for the six beneficiaries, after deducting donations later noted, one-half of the net income each year to be divided among those six beneficiaries, the other half to be accummlated and reinvested, and the whole fund to be divided among the beneficiaries at the end of the one hundred and twenty-five year period. This provision gives rise to the material point in the case.

*108 The main contention of the appellants is that the trust created by the will of Finch is not a charitable trust, and that it violates the rule against perpetuities.

On the other hand, the contention of the appellee is that not only are gifts in trust for the benefit of corporate charitable organizations valid,- but trusts for the benefit of indefinite beneficiaries, such as the white poor of Powhatan county, are equally valid; that the trust under the Finch will is a charitable trust; that the rule against perpetuities is not applicable, and that the provision for accumulation of income does not vitiate the trust but remains subject to the control of the court.

The charters of the five corporate beneficiaries were introduced in evidence and speak for themselves. A mere reading of them convinces the impartial mind that they are for purely benevolent and charitable purposes.

A very comprehensive definition of what is a charity, within the purview of Virginia law, is found in 3 M. J. (Michie’s Jurisprudence), Charitable Trusts, sec. 2. There it is defined: “ ‘A charity,’ in a legal sense, may be described as a gift to be applied, consistently with existing laws, for the benefit of an indefinite number of persons, either by bringing their hearts under the influence of education or religion, by relieving their bodies from disease, suffering or constraint, by assisting them to establish themselves for life, or by erecting or maintaining public buildings or works, or otherwise lessening the burdens of government. It is immaterial whether the purpose is called charitable in the gift itself, if it is so described as to show that it is charitable. Generally speaking, any gift not inconsistent with existing laws which is promotive of science or tends to the education, enlightening, benefit or amelioration of the condition of mankind or the diffusion of useful knowledge, or is for the public convenience is a charity. It is essential that a charity be for the benefit of an indefinite number of persons; for if all the beneficiaries are personally designated, the trust *109 lacks the essential element of indefiniteness, which is one characteristic of a legal charity.”

The text is supported by a number of Virginia cases.

The subject of charitable trusts has been before this court on many occasions. The most recent case is Thomas v. Bryant, 185 Va. 845, 40 S. E. (2d) 487, 169 A. L. R. 257. There, the testator, a resident of Wythe county, directed that after the death or remarriage of his wife, all of the remainder of his estate be devoted to the maintenance of a home for destitute and dependent aged white people, both men and women, living in Wythe county, the said home to be located in the town of Wytheville, and to be named the George W. Simmerman Home For the Aged. The legal, title to the property was to be vested in five trustees.

The provision in the will was challenged because of alleged impossibility of performance, in that the available fund was insufficient for the maintenance of such a home, that the trust was invalid because it was too indefinite, and violated the rule against perpetuities.

The court, speaking through Mr. Justice Eggleston, held that charitable gifts are viewed with peculiar favor by the courts, and every presumption consistent with the language contained in the instruments of gift will be employed in order to sustain them. All doubts will be resolved in then-favor. And at page 852, the court said: “In the case before us the testator desired that this fund be used for a worthy charitable purpose. It is clear that he did not intend that his heirs should receive it. While the income from the fund may not be sufficient to maintain and establish a home on the scale of some other institutions of like character, there is no reason why it should not be applied as far as is practicable to carry out the testator’s intent. Surely, the fact that the fund may not be adequate to provide for the needs of all of the indigent aged of Wythe county is no reason why it should be taken from the small number who may be aided thereby and turned over to the heirs, contrary to the intent of the testator.”

*110

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Bluebook (online)
56 S.E.2d 83, 190 Va. 104, 1949 Va. LEXIS 265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allaun-v-first-merchants-national-bank-va-1949.