Maguire v. Loyd

67 S.E.2d 885, 193 Va. 138
CourtSupreme Court of Virginia
DecidedDecember 3, 1951
DocketRecord 3841
StatusPublished
Cited by14 cases

This text of 67 S.E.2d 885 (Maguire v. Loyd) 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
Maguire v. Loyd, 67 S.E.2d 885, 193 Va. 138 (Va. 1951).

Opinion

Smith, J.,

delivered the opinion of the court.

The purpose of this appeal is to determine the validity of a trust for the benefit of a church, the corpus of which is valued at more than $375,000.

About two years prior to her death on February 2, 1945, Mary Louise Peek Stone, a widow, hereinafter referred to as “Mrs. Stone”, executed her last will and testament by which she bequeathed and devised the remainder of her estate as follows:

“FIFTEENTH: I give, devise and bequeath all of the rest, residue and remainder of my estate, both real and personal, and wheresoever situated, which I may own or be entitled to dispose of at the time of my death, to my Trustees, hereinafter named, in trust nevertheless, for the following uses and purposes:
“(a) To collect, receive, invest and reinvest the same and pay the net income therefrom to my daughter, G-RACE STONE KELLER, during the term of her life.
“ (b) Hpon the death of my said daughter, G-RACE ST'ONE KELLER, to pay said net income to, or in the absolute discretion of my said Trustees, to expend said net income for the *140 benefit of tbe FIRST CHRISTIAN SCIENCE CHURCH OF LYNCHBURG, VIRGINIA. All income paid by my said Trustees to, or expended by them for the benefit of, the FIRST CHRISTIAN SCIENCE CHURCH OF LYNCHBURG, VIRGINIA, shall be used exclusively for one or more of such purposes as are exempt from inheritance or transfer taxes under the laws of the United States and the State of Virginia. ’ ’

In her will Mrs. Stone nominated as executors her daughter, Grace Stone Keller, a resident of Lynchburg, Virginia and her sole heir at law and distributee, and Walter N. Maguire and Guy Parkhurst Estes, nonresidents of Virginia. These executors are. hereinafter referred to as “Mrs. Stone’s executors”. She also appointed these same three persons as trustees of the trust created therein. These trustees and the successor of one of them are hereinafter referred to as “will trustees”.

The exectuors and trustees named in the will qualified and entered info bond in the penalty of $630,000.

Grace Stone Keller, hereinafter referred to 'as “Mrs. Keller”, subsequently died and no substitute executor was appointed in her stead, but Wallace Greene Arnold, a nonresident of Virginia, was appointed by the will trustees as substitute will trustee in the manner provided in the will.

The trial court found that Mrs. Stone in her reference to the “First Christian Science Church of Lynchburg, Virginia”, intended to name the “First Church of Christ, Scientist, of Lynch-burg, Virginia” as the object of her bounty and the beneficiary of the trust. The trustees of this church are elected by the congregation and appointed by the Corporation Court of the city of Lynchburg according to section 57-8 of the Code of Virginia, 1950, and at present consist of the appellants, Frances S. Williams and Elsie Fitzgerald, hereinafter referred, to as “church trustees”. The governing body of the church is known as the board of directors.

It will be observed from a reading of paragraph Fifteenth of the will that the trust thereby created was for two distinct, separate and successive uses and purposes. The first of these constituted a private trust for the benefit of Mrs. Keller during her life. The second of these uses and purposes constituted what is sometimes referred to as a “religious trust” which, especially in Virginia, is a distinctive type of charitable trust.

Mrs. Keller died testate on August 7, 1948, and her will with *141 codicil was duly admitted to probate. Her son, Frank Stone Loyd, and J. Easley Edmunds, Jr., nominated as executors in the will, duly qualified. These executors are hereinafter- referred to as “Mrs. Keller’s executors”. In her will Mrs. Keller left all the rest and residue of her estate to her son, Frank Stone Loyd, in fee simple absolute. He and his brother, Sidney Miller Loyd, are the sole heirs at law and distributees of Mrs. Keller.

At the time of Mrs. Keller’s death the First Church of Christ, Scientist, of Lynchburg, Virginia, had money, securities, and other personal estate aggregating $13,300, exclusive of books and furniture, and the corpus of the trust in the hands of the will trustees consisted entirely of personal estate (all the realty having been sold as authorized by the will).

The appellees (Mrs. Keller’s executors) filed their bill in chancery at first September rules, 1949, against the appellants (Mrs. Stone’s executors, the will trustees, and the church trustees) praying that the dispositipn in remainder of the residuum of Mrs. Stone’s estate, set out in paragraph Fifteenth of her will, be declared void and of no effect, because it failed to comply with the laws of Virginia governing the disposition of property for religious purposes and, because it violated the rule against perpetuities.

The holding of the trial court can be briefly stated as follows: (1) The church referred to in the will is the First Church of Christ, Scientist, of Lynchburg, Virginia. (2) The trust was validated by section 57-7 of the Code of 1950, but limited by section 57-12 of the Code of 1950, to $86,700 ($100,000 less $13,300, the amount of intangible personal property stipulated to have been held by the church trustees at the time of Mrs. Keller’s death) and as so limited must be administered by the church trustees. (3) Counsel for the will trustees are entitled to a fee of $12,500 for their services.

The appellants’ assignments of error and the appellees’ assignments of cross-error raise the following questions: (1) Is the trust created by Mrs. Stone’s will valid in whole or in part and, if valid in whole or in part may if be administered by the will trustees? (2) Is the trust subject to the limitation prescribed by section 57-12 of the Code? (3) Does the trust violate the rule against perpetuities? (4) Are Mrs. Keller’s executors proper parties to raise the question as to the application of *142 section 57-12? (5) Is the fee allowed counsel for the will trustees excessive ?

We turn our attention to the first question to be decided: Is the trust created by Mrs. Stone’s will valid in whole or in part and, to the extent that it is valid, may it be administered by the will trustees ?

Appellees contend that the trust is void in its entirety, because it fails to comply with the legislative requirements of section 57-7 which, as contended, limits the uses of the property given for religious purposes to such objects as may be determined by the trustees of the beneficiary congregation by and with the approval of the church authorities having charge of the administration of the temporalities thereof.

Charitable trusts and especially religious trusts have had an interesting but turbulent history in this State. The case of Moore v. Perkins, 169 Va. 175, 192 S. E. 806, gives an excellent summary of the legal history of charitable trusts in Virginia and very succinctly states the common law, on page 177, as follows :

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Bluebook (online)
67 S.E.2d 885, 193 Va. 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maguire-v-loyd-va-1951.