Brody Estate

26 Pa. D. & C.2d 409, 1962 Pa. Dist. & Cnty. Dec. LEXIS 293
CourtPennsylvania Orphans' Court, Philadelphia County
DecidedFebruary 1, 1962
Docketno. 482 of 1961
StatusPublished

This text of 26 Pa. D. & C.2d 409 (Brody Estate) is published on Counsel Stack Legal Research, covering Pennsylvania Orphans' Court, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brody Estate, 26 Pa. D. & C.2d 409, 1962 Pa. Dist. & Cnty. Dec. LEXIS 293 (Pa. Super. Ct. 1962).

Opinion

Saylor, J.,

Rose Brody died July 5, 1960, survived by neither spouse nor issue. She left a will, duly probated, by which she gave to Marcella D. Creighton, not related, her furniture, furnishings and automobile; to Dr. Robert G. Ravdin, the sum of $5,000; and gave the balance of her estate to [411]*411students and deserving children selected by her trustee after consultation with Marcella D. Creighton.

Letters testamentary were granted to the accountants on July 11, 1960, and proof of advertisement of notice thereof was submitted to me.

Payment of transfer inheritance tax of $1,140.79 on October 5, 1960, prior to appraisement, was duly vouched.

A. Validity of Residuary Trust

Decedent executed her will on June 9, 1960. It is claimed on behalf of her heirs that the residuary trust created by item 4(b) of the will is either void as a charitable trust executed within 30 days before the death of decedent, or that it fails as a noncharitable trust because of indefiniteness.

Decedent provided by her will:

“The balance of principal and income, if any, as and when the same shall have been received, shall be distributed as soon as may reasonably be convenient thereafter unto such students and to such deserving children as my Trustee, after consultation with MRS. MARCELLA D. CREIGHTON, who is personally familiar with those in whose welfare I am interested, shall, in its sole and absolute discretion, select and designate as the beneficiary of such bounty.”

At the audit, testimony of Mrs. Creighton, the scrivener of the will, and one Frederick Roye was admitted, subject to objection, to show that decedent had intended to benefit certain named individuals by this bequest. The objection is made that this testimony is inadmissible, and that, even if admissible, it does not sufficiently define the beneficiaries of the trust.

It is clear from an examination of the will that decedent intended to benefit some one or some persons. She has, however, achieved the unusual distinction of expressing her intent in such a way that the bene[412]*412ficiary class is defined too narrowly to constitute a valid charitable trust, yet, at the same time is not sufficiently defined to constitute a valid private trust for designated beneficiaries. The conclusion is, therefore, reached that decedent died intestate as to her residuary estate in spite of the presumption against intestacy and the fact that decedent did intend to create a trust of some character.

1. The trust as a charitable trust

The definition of what is “charitable” for the purpose of classifying a trust as charitable is always stated in the broadest terms. See, for example, Taylor v. Hoag, 273 Pa. 194, 196-97 (1922), where it is declared that

“The word ‘charitable,’ in a legal sense, includes every gift for a general public use, to be applied, consistent with existing laws, for the benefit of an indefinite number of persons, and designed to benefit them from an educational, religious, moral, physical or social standpoint. In its broadest meaning it is understood ‘to refer to something done or given for the benefit of our fellows or the public’; Knight’s Est., 159 Pa. 500, 502.”

See also Voegtly Estate, 396 Pa. 90 (1959); Barnwell’s Estate, 269 Pa. 443 (1921).

The legislature has adopted a similarly broad definition in declaring that “charity” or “charitable purposes”, as used in the Estates Act, shall include, but shall not be limited to, “the relief of poverty, the advancement of education, the advancement of religion, the promotion of health, governmental or municipal purposes, and other purposes the accomplishment of which is beneficial to the community.”

Section 1(1) of the Estates Act of April 24, 1947 P.L. 100, 20 PS §301.1(1).

[413]*413In the light of these broad definitions, a trust for “students” would be a charitable trust, although, as will be noticed later, a question still arises as to who are students. Similarly, a trust for “deserving children” would be held a charitable trust, although a doubt may arise because “deserving” may include meanings of worthy or meritorious, as well as needy. The adjective “worthy”, when used in connection with persons, does not necessarily have the same meaning of charitable as was attributed to that word in Funk Estate, 353 Pa. 321 (1946), when interpreting the phrase “worthy cause or institution”. As a further question of construction, the linking together by decedent of the standards of “students” and “deserving children” may result in the one standard serving to modify or restrict the other. Undoubtedly, if the will were construed as providing for the distribution of the fund to “such students and deserving children” as the trustee should select, the trust could be deemed a charitable trust. In such case, the will could be interpreted as confining the trustee to expenditures for what would be deemed a charitable purpose, reliance being made for such construction upon the decisions in Funk Estate, 353 Pa. 321 (1946); Anderson’s Estate, 269 Pa. 535 (1921) and Dulles’ Estate, 218 Pa. 162 (1907).

If the foregoing conclusion could be reached, the present controversy would be easily brought to an end; the trust would be held charitable and, because of the death of decedent within 30 days after the execution of the will, that trust would be void and the residuary estate would pass to decedent’s heirs. It is believed, however, that this conclusion cannot be adopted because decedent did not by her will provide simply for the distribution to such persons as the trustee should select. She expressly directed that the action of the trustee should be preceded by “consulta[414]*414tion” with Mrs. Creighton “who is personally familiar with those in whose welfare I am interested.”

What was the intent of decedent in requiring consultation with Mrs. Creighton? Assume that Mrs. Creighton should inform the trustee that decedent had been interested in child B, and the trustee agreed that B was a student or a deserving child. Was it within the contemplation of decedent that the trustee could nevertheless refuse to make any payment to B, and then make payments to persons who were total strangers to decedent, merely because the trustee had discretion as to whom to make payments and preferred to make the payments to such strangers? It is unreasonable to believe that decedent did not intend that the prime, if not the exclusive, objects of her bounty should be “those in whose welfare (she had been) interested” the trustee merely being given the power of determining whether those persons were still students or deserving children and what amounts they should receive. It seems reasonable to believe that decedent intended that only after that group in which she was personally interested had been exhausted, or properly rejected by the trustee as unworthy, was the trustee to exercise the discretion to go outside that group. Again, it appears unreasonable to assume that decedent intended that the trustee could totally disregard the information obtained upon consultation and act as though such consultation were not required by the will.

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Bluebook (online)
26 Pa. D. & C.2d 409, 1962 Pa. Dist. & Cnty. Dec. LEXIS 293, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brody-estate-paorphctphilad-1962.