Gilbert v. Beach

42 F. Supp. 168, 1941 U.S. Dist. LEXIS 2395
CourtDistrict Court, District of Columbia
DecidedDecember 3, 1941
DocketNo. 5207
StatusPublished
Cited by4 cases

This text of 42 F. Supp. 168 (Gilbert v. Beach) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilbert v. Beach, 42 F. Supp. 168, 1941 U.S. Dist. LEXIS 2395 (D.D.C. 1941).

Opinion

LAWS, Associate Justice.

Hearing on' bill to construe the last will and testament of John A. Baker, deceased, insofar as it makes provisions for a charitable trust.

Testator died on May 6, 1929, leaving as his sole heir at law and next of kin his legally adopted daughter, Elizabeth Baker Kemp Beach. His last will and testament dated June 11, 1928, and a codicil dated August 31, 1928, were regularly admitted to probate. By his will, after making specific bequests and devises, provision is made that the residue shall go to trustees, namely, National Savings and Trust Company and Mary G. Baker (widow of testator’s son), part of the income from the trust to be used for a number of specified purposes [169]*169and the residue of income to be paid in portions of three-fourths to Mrs. Beach and one-fourth to Mrs. Baker. Upon the death of Mrs. Baker, testator directs that Eva Nelson Gilbert shall be substituted as trustee in place of Mrs. Baker, and thereupon, by provisions made in clause 9 of his will, the trustees, amongst other things, are directed to transfer and deliver “one-fourth of the principal of the trust estate heretofore created and the accumulations of interest thereon, if any, to the said National Savings and Trust Company, absolutely and in fee simple, in trust nevertheless, to hold the same perpetually, with power to invest and reinvest the same in such manner as shall appear to said trustee to be wise as a charitable trust.” The testator then provides payments from the trust thus created to be made to three committees, one in Prince Georges County, Maryland, another in Montgomery County, Maryland, a third in Fairfax County, Virginia. Each of these committees is to consist of five white persons residents for five years or more of the county mentioned, and is to be selected annually by pastors of certain named churches in said county. Each committee is to apply what it receives from the trust for the medical welfare, support and care of such indigents and indigent sick white persons in the county mentioned as in its discretion shall be selected. In the concluding paragraph of this clause of testator’s will, it is directed that if any committee shall fail to function, the share not applied by said committee shall go to and increase the share to be applied by the other committees provided for in said clause.

The defendants in this cause, Mrs. Beach and her three minor children, through their guardian ad litem, contend that the provisions in clause 9 of testator’s will, attempting to set up a charitable trust, are invalid. Mrs. Beach contends that by reason of their invalidity, decedent died intestate as to the part of the estate set aside for the charitable trust and that she becomes entitled to it as his sole heir at law and next of kin. The guardian ad litem for the children calls attention to a provision in clause 6 of the will, by which testator directs that “if, for any reason and at any time, prior to the final distribution of this trust estate, any part of the net income hereof be not disposed of, or does not pass under any of the aforegoing clauses of this my will, making distribution of the same, such undisposed of income shall be and become part of, and increase the net income of my estate effectually disposed of under said clauses of this will.” The guardian contends the effect of this provision is to require the trustees, in the event the charitable trust is held invalid, to hold the estate attempted to be given to the charitable trust as part of the estate which is placed in trust for the life of Mrs. Beach and for 21 years thereafter and then is to be divided among her issue. The complaint prays that in the event the court shall construe testator’s will as not effectively establishing a charitable trust, the trustee shall be instructed as to what disposition shall be made of the estate and properties referred to in said clause 9.

Mrs. Mary G. Baker died on July 30,1937. Thereafter Eva Nelson Gilbert succeeded Mrs. Baker as co-trustee with the National Savings and Trust Company and committees were set up in the three counties mentioned by clause 9 of testator’s will to administer the charitable trust. The testimony in this case shows that said committees, having had funds made available to them by the National Savings and Trust Company, undertook to and did carry out the provisions of testator’s will by aiding indigents and indigent side in the counties mentioned. This continued until April, 1939, when the question was raised as to the validity of the charitable trust created by clause 9 of testator’s will. Thereupon the further carrying out of the charitable trust provisions of clause 9 was stopped, and the bill of complaint was brought herein for the purposes heretofore stated.

The defendants maintain the charitable trust provisions of clause 9 are invalid for a number of reasons, principally among them the following: First, that as of the time of the death of the testator, charitable trusts such as the one attempted to be created by testator were invalid both in the States of Maryland and Virginia, the places where they were to be administered. Second, granting,' arguendo, there came a time, after the date of death of testator but before the trusts were to be put in operation, when both the States of Maryland and Virginia passed statutes under which the trusts might validly operate, yet since the will spoke as of the time of the death of testator, the statutes had no effect upon the present case. Third, that the said statutes of Maryland and Virginia do not apply to the charitable trust attempted to be created [170]*170by testator, for the reason that the provisions are too indefinite, uncertain and cumbersome to be administered under supervision of courts of chancery.

The questions raised by defendants as to supervision of the trusts by courts of chancery are important to be determined in reaching a decision of this case. To answer these questions it is necessary to ascertain what trust or trusts were created by testator. Reference to the will shows that the National Savings and Trust Company in the District of Columbia is appointed to hold a specified part of decedent’s estate to be used for the charitable trust; the trust company is charged with the duty of investing and reinvesting the same and of paying the income over to committees in the counties in Maryland and Virginia. The committees in the two counties in Maryland and the one county in Virginia are to separately administer the funds thus paid over to them. No accounting by the .committees to the National Savings and Trust Company is required by the will'. While this might be said to indicate separate trusts, yet it is apparent the testator’s plan contemplated a concert of action. The general language of the will indicates this, as well as the specific provision to the effect if one or more of the committees which were to distribute his trust estate should fail to function, the share not applied by said committee should go to and increase the share to be applied by the other committees. I, therefore, conclude that what testator sought to accomplish was the setting up of a trust, , to be separately administered in the District of Columbia, in Prince Georges and Montgomery Counties in Maryland, and in Fairfax County in Virginia.

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Bluebook (online)
42 F. Supp. 168, 1941 U.S. Dist. LEXIS 2395, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbert-v-beach-dcd-1941.