Cerny v. First National Bank

467 P.2d 770, 12 Ariz. App. 58, 1970 Ariz. App. LEXIS 574
CourtCourt of Appeals of Arizona
DecidedApril 14, 1970
DocketNo. 1 CA-CIV 810
StatusPublished
Cited by3 cases

This text of 467 P.2d 770 (Cerny v. First National Bank) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cerny v. First National Bank, 467 P.2d 770, 12 Ariz. App. 58, 1970 Ariz. App. LEXIS 574 (Ark. Ct. App. 1970).

Opinion

DONOFRIO, Presiding Judge.

This is an appeal from the decree of determination of heirship entered in the Su■perior Court of Maricopa County November 7, 1967. The proceeding in the trial court was to determine heirship in the probate of the will of James Kidd, a petition having been filed pursuant to A.R.S. § 14-641 by The First National Bank of Arizona as Administrator With Will Annexed. Claims and statements of interest were filed by one hundred three persons, including the appellants herein.

On January 2, 1946 James Kidd wrote a ^holographic will which reads as follows:

“This is my first and only will and is dated the second day in January 1946. I have no heirs have not been married in my life, after all my funeral expenses have been paid and #100. (sic) one hundred dollars to some preacher of the gospital (sic) to say fare well at my grave and selh all my property which is all in cash and stocks with E. F. Hutton Co Phoenix some in safety box, and have this balance money to go in a research or some scientific proof of a soul of the human body which leaves at death I think in time their (sic) can be a Photograph of soul leaving the human at death,”

Evidence in the record indicates that at the time of the hearing on the petition for letters of administration and petition for probate of the will, April 6, 1964, the residuary estate, consisting primarily of stocks and bonds and some cash and other assets, was then valued in excess of $174,000.

On May 5, 1965 the will was admitted to probate upon a determination that Kidd had died testate on or about November 10, 1949, a resident of Maricopa County, Arizona. The First National Bank of Arizona was appointed Administrator With Will Annexed of the Estate of James Kidd, deceased.

On March 31, 1966 the Court, upon a motion for summary judgment filed by The First National Bank of Arizona, as Administrator, ordered:

“That the following words contained in the Last Will and Testament of James Kidd, Deceased, to-wit: ‘ * * * sell all my property * * *, and have this balance money go in a research or some scientific proof of a soul of the human body which leaves at death’ creates a valid charitable testamentary trust.”

Subsequently, and in order to determine who could best administer such trust, the Court held hearings upon one hundred three petitions, statements of interest and claims filed by the alleged heirs of Kidd, and by various organizations, institutes, societies and individuals, including the parties now before the Court. Those hearings were held almost continually between June 6 and August 31, 1967.

[60]*60The Court heard testimony and received exhibits in evidence from more than sixty claimants, and in addition the Court on motion ordered that more than forty claims be submitted on the record. The Court took all of these matters under advisement.

The case was surrounded by considerable public attention, due perhaps in part to at least one magazine article which presented a narrative of the unusual nature of Kidd’s will and which appeared in a publication of nationwide circulation at a time before the trial court had issued its decree.1

In the decree the trial court, after restating its conclusion that a valid charitable trust had been created by the language of the will, concluded that such bequest,

“ * * * be used for the purpose of research which may lead to some scientific proof of a soul of the individual which leaves the body at death; that considering the language of the Last Will and Testament of the deceased as a whole, it was the intention and desire of the deceased that the residue and remainder of the estate be used for the purpose of research, which may lead to some scientific proof of a soul of the individual human which leaves the body at death, and that it is incumbent on the Court to insure that the residue and remainder of the estate of the deceased be used in such a manner as to benefit mankind as a whole to the greatest degree possible and that this can best be accomplished by the distribution of said funds for the purpose of research which may lead to some scientific proof of a soul of the individual human which leaves the body at death; * *

The Court then determined that this research could most beneficially be carried out in the combined fields of medical science, psychiatry and psychology and that ■such research could best be performed by the Barrow Neurological Institute of Phoenix, Arizona.

Neurological Sciences Foundation is a nonprofit corporation organized for charitable, scientific and educational purposes and is authorized to act as trustee of trust funds. It is the organization through which funds are received for the purpose of financing the research projects performed and carried on by the Barrow Neurological Institute. The trial court determined that the Neurological Sciences Foundation was the proper organization to receive the funds of the Kidd estate in trust for the purpose of research to be performed by Barrow Neurological Institute.

By its construction of Kidd’s will and by conclusions drawn therefrom the Court denied the petitions and statements of interest of all other claimants, including the appellants and the alleged heirs.

Post judgment motions of the parties were heard by the Court on November 27, 1967, and were severally denied.

On this appeal only six of the original claimants are left as bona fide appellants. None of the parties before this Court contests the validity of the will. They contend that the trial court incorrectly construed the intent of the testator, substituted its own charitable scheme or purpose for that set out in Kidd’s will, and abused its discretion in granting the petition of Barrow Neurological Institute/Neurological Sciences Foundation. Appellants contend that the Decree of Determination of Heirship should be reversed and remanded with directions to award the residue and remainder of the estate to these appellants, jointly or singly as trustee (s), in trust for the purpose of doing “research or (obtaining) some scientific proof of a soul of the human body which leaves at death”, as set out in the testator’s will.

Two principal questions are presented on this appeal. First, it must be ascertained whether the trial court was correct in construing the will to establish a charitable bequest to be held in trust for the purpose of “research which may lead to some scientific proof of a soul of the individual human which leaves at death.” Secondly, assum[61]*61ing such charitable trust was created, we must determine whether the trial court abused its discretion in distributing the estate to Neurological Sciences Foundation as trustee to be used for the purpose of research which may lead to some scientific proof of a soul of the individual human which leaves the body at death, to be performed and carried on by Barrow Neurological Institute.

WAS THERE A VALID CHARITABLE TRUST CREATED BY THE TERMS OF KIDD’S WILL?

Consideration must first be directed toward the trial court’s finding that Kidd’s will created a charitable trust. The Restatement (Second) of Trusts defines a charitable trust as:

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Related

Rosser v. Prem
449 A.2d 461 (Court of Special Appeals of Maryland, 1982)
Cerny v. First National Bank
479 P.2d 697 (Arizona Supreme Court, 1971)
In Re Estate of Kidd
479 P.2d 697 (Arizona Supreme Court, 1971)

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Bluebook (online)
467 P.2d 770, 12 Ariz. App. 58, 1970 Ariz. App. LEXIS 574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cerny-v-first-national-bank-arizctapp-1970.