Foshee v. Republic National Bank of Dallas

617 S.W.2d 675, 24 Tex. Sup. Ct. J. 252, 1981 Tex. LEXIS 283
CourtTexas Supreme Court
DecidedFebruary 25, 1981
DocketB-9619
StatusPublished
Cited by20 cases

This text of 617 S.W.2d 675 (Foshee v. Republic National Bank of Dallas) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foshee v. Republic National Bank of Dallas, 617 S.W.2d 675, 24 Tex. Sup. Ct. J. 252, 1981 Tex. LEXIS 283 (Tex. 1981).

Opinions

WALLACE, Justice.

This is an appeal from a judgment of the court of civil appeals which affirmed a. summary judgment for respondents. Petitioners Clinton and Mary Foshee (Foshee) are the Independent Executors of the Will of Bernice Schlosberg. Respondent, Republic National Bank of Dallas, (Republic) is Trustee of the Hillcrest Mausoleum Special Gifts Trust Fund and also the Trustee of the Hillcrest Mausoleum Perpetual Care Fund. The Attorney General is a respondent because a charitable trust is alleged to be involved.1

The issue before us is whether a portion of Mrs. Schlosberg’s Will which bequeathed $40,000 to the Hillcrest Mausoleum Special Gifts Fund violated the rule against perpe-tuities.

At the time of her death Mrs. Schlosberg owned a room containing five crypts at Hillcrest Mausoleum. She left a Will which provided in part:

I give, devise and bequeath the sum of Forty Thousand Dollars ($40,000.00) in cash to Republic National Bank of Dallas, Texas, in trust, as Trustee of that certain Trust created on May 19, 1948, by and between Hillcrest Máusoleum, Inc. and Republic National Bank of Dallas, known as “Hillcrest Mausoleum special Gifts Trust Fund,” such sum to become a part [677]*677of said Trust Fund and to be administered in perpetuity as a part thereof and under the terms and provisions of said Trust indenture. I direct that the entire income, or the maximum amount of such income that is permitted under the laws of the State of Texas, from this gift, be expended for keeping, beautifying, and for the purchase of flowers for the burial space of my mother Sallie Alwida Schlos-berg, my brother Sylvan S. Schlosberg and myself in the room which I own in Hillcrest Mausoleum. I further direct that flowers be purchased from this income and placed in, on or around said room weekly or at least semi-monthly depending upon the amount of income available for such purpose. The remainder of such income, if any, after expending the maximum amount allowed by the laws of this state for the purpose aforesaid shall be devoted to and spent for the general upkeep and beautification of the entire Mausoleum.

Republic made demand on Foshee as executor of the Will to make payments to it of the $40,000. Foshee refused, contending that the bequest was in violation of the rule against perpetuities and void. Republic filed suit and both parties moved for summary judgment. Foshee’s motion was denied and Republic’s was granted. The court of civil appeals affirmed. 600 S.W.2d 358. We reverse and render in part and remand in part.

Article I, section 26 of the Texas Constitution provides that “[pjerpetuities and monopolies are contrary to the genius of a free government, and shall never be allowed

It is settled law in this State that the rule against perpetuities renders invalid any will which attempts to create any estate or future interest which by any possibility may not become vested within a life or lives in being at the time of the testator’s death and twenty-one years thereafter, and when necessary the period of gestation. Kettler v. Atkinson, 383 S.W.2d 557, 560 (Tex.1964), quoting Henderson v. Moore, 144 Tex. 398, 190 S.W.2d 800, 801 (1946). It is likewise settled law that the rule against perpetuities also applies to trusts, and a perpetual trust of indefinite duration is void. Moore v. Sellers, 201 S.W.2d 248, 251 (Tex.Civ.App. San Antonio 1947, writ ref’d); Carr v. Jones, 403 S.W.2d 181, 182 (Tex.Civ.App. Houston 1966, writ ref’d n.r.e.); Atkinson v. Kettler, 372 S.W.2d 704, 711 (Tex. Civ.App. Dallas 1963), aff’d, 383 S.W.2d 557 (Tex.1964). If, however, the trust is established for charitable purposes, the constitutional inhibition against perpetuities does not apply. Boyd v. Frost National Bank, 145 Tex. 206, 196 S.W.2d 497, 505 (1946); Atkinson v. Kettler, 372 S.W.2d 704, 713 (Tex.Civ.App. Dallas 1963), aff’d, 383 S.W.2d 557 (1964); Rissman v. Lanning, 276 S.W.2d 356, 358 (Tex.Civ.App. Austin 1955, no writ). Generally, a perpetual trust for the upkeep of a private burial plot is not considered to be for charitable purposes. See Mcllvain v. Hockaday, 36 Tex.Civ.App. 1, 81 S.W. 54 (1904, writ ref’d); Annot., 47 A.L.R.2d 596 (1956); G. Bogert, The Law of Trusts and Trustees § 377 (1977); Reinstatement (Second) of Trusts § 374 Comment h (1959). In the absence of a statute declaring such trusts to be charitable in nature, such trusts are generally held to be void and unenforceable. See Bogert, supra.

The court of civil appeals held that Article 912a, Sections 15 and 18 are pari mate-ria and should be taken and construed together to carry out the legislative intent. Further, that when so construed those sections reveal an intention by the Legislature to define the special care fund referred to in Section 18 as a charity.

Section 15, entitled “Establishment and Maintenance of Perpetual Care,” authorizes the establishment and maintenance of a perpetual care fund. It provides that the income only can be used for the general perpetual care of the cemetery; that the principal of such fund for perpetual care shall never be voluntarily reduced, but shall remain inviolable and shall forever be maintained separate and distinct by the trustee or trustees from all other funds; and that all contributions to the fund shall be deemed for charitable and eleemosynary purposes.

[678]*678Section 18, entitled “Special Care,” permits in paragraph one, the trustee of a perpetual care cemetery to also take property given in trust and apply the principal, or proceeds, or income for the special care or ornamenting of any burial plot, lot, section or building. This section further provides that no more than 75% of the proceeds or income from such funds shall be devoted to keeping up or beautifying private blocks, lots or structures and 25% of such proceeds or income shall be devoted to the general upkeep and beautifying of the cemetery. This paragraph contains no language suggesting that the special care fund with which it deals should not be considered a perpetuity.

The second paragraph of Section 1§. permits a non-perpetual care cemetery to maintain a special care fund. It requires that at least 25% of the proceeds or income from the fund be used for general cemetery upkeep and that the fund shall not be regarded or held to be a perpetuity.

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Foshee v. Republic National Bank of Dallas
617 S.W.2d 675 (Texas Supreme Court, 1981)

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Bluebook (online)
617 S.W.2d 675, 24 Tex. Sup. Ct. J. 252, 1981 Tex. LEXIS 283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foshee-v-republic-national-bank-of-dallas-tex-1981.