Rohlff v. German Old People's Home

10 N.W.2d 686, 143 Neb. 636, 1943 Neb. LEXIS 130
CourtNebraska Supreme Court
DecidedJuly 23, 1943
DocketNo. 31601
StatusPublished
Cited by13 cases

This text of 10 N.W.2d 686 (Rohlff v. German Old People's Home) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rohlff v. German Old People's Home, 10 N.W.2d 686, 143 Neb. 636, 1943 Neb. LEXIS 130 (Neb. 1943).

Opinion

Carter, J.

Plaintiffs, as heirs of Henry Rohlff, deceased, commenced this action against the German Old People’s Home, a charitable corporation, and its officers and trustees, to obtain a decree holding that a charitable trust created by the will of Henry Rohlff had failed through the failure of defendants [638]*638to carry out the purpose of the trust and for a distribution of the fund to the heirs of the said Henry Rohlff. The trial court sustained a demurrer to the petition and dismissed the action. Plaintiffs appeal.

The petition alleges that Henry Rohlff, the father of the plaintiffs, was during his lifetime a member of the Omaha Plattdeutsche Verein, an organization of persons of German descent organized for the promotion of the welfare of such persons. The members undertook to raise the funds necessary to construct and maintain a home for aged persons of German extraction, and, with the intention of assisting in the project, Henry Rohlff executed his last will and testament containing the following residuary clause: “All the rest, residue and remainder of my property, real, personal or mixed, of which I shall die seized or posesssed I give, devise and bequeath as follows, to wit: One-fifth to my daughter, Lillie' Lierk, one-fifth to my son Oscar B. Rohlff, one-fifth to my daughter Clara Roos, one-fifth to my son, Erwin E. Rohlff, and one-fifth to the Omaha Plattdeutsche Vereen to be used for the purposes of the Altenheim or Old People’s Home which it proposes to establish, provided if before my demise there will be organized a separate corporation for the purpose of conducting* said Old People’s Home, the bequest and legacy so intended for purposes of an Old People’s Home shall pass directly to such corporation and not to the Omaha Plattdeutsche Vereen in trust.”

Subsequent to the making of the will and on February 23, 1923, the German Old People’s Home was incorporated and funds were solicited for the purpose of building an old people’s home for aged persons of German descent.

Henry Rohlff died on November 19, 1925, and his will was duly filed for probate. The executors of the estate thereupon applied for an order declaring the bequest to the German Old People’s Home to have lapsed by the failure of the trustees of the home to carry out the purposes of the corporation. The petition alleges that assurances were given that the home would be constructed and maintained, and in [639]*639order to close the estate an agreement was entered into on May 26, 1926, between the trustees of the corporation and the heirs of Henry Rohlff whereby certain property and cash in 'the amount of $10,000 were transferred to the trustees of the corporation to effect the intention of the testator and to release the executors and heirs of the Henry Rohlff estate from further liability by virtue of the provision of the will.

It is further alleged that the agreement was entered into by the executors and heirs of Henry Rohlff upon the representations of the trustees of the German Old People’s Home that additional funds would be raised and the home constructed and maintained, and th,at since that date no funds have been raised, no home built and efforts abandoned for so doing. The petition alleges that the purpose of the trust has failed and that the funds have been dissipated and wrongfully diverted from the purposes for which the trust was created. It is further alleged that said trustees propose to divert the remainder of said funds to other and different purposes from that contemplated by the articles of incorporation of the home, the proviso of the will of Henry Rohlff, deceased, and the agreement. entered into by the heirs and executors of the estate and the trustees of the corporation. The petition prays for injunctive relief, an accounting, a finding that the charitable trust has failed, the dissolution of the corporation, and for a distribution of said trust fund to the heirs of Henry Rohlff, deceased.

A consideration of the nature of the bequest made by the testator in his will is essential to a proper determination of the case. It will be noted that at the time the will was drawn the Omaha Plattdeutsehe Verein was proposing to establish an old people’s home for the benefit of the old people among its membership. One-fifth of testator’s residuary estate was given to the Omaha Plattdeutsehe Verein in trust for the purpose of aiding in the building and maintaining of the home. This provision was subject to a proviso to the effect thát if a separate corporation would be or.ganized for the purpose of conducting the .home before tes[640]*640tator’s demise, then the bequest should pass directly to such corporation and not to the Omaha Plattdeutsche Verein 'in trust. The petition shows that such a corporation known as the German Old People’s Home was organized before testator’s death for the purpose of conducting such a home. Consequently the German Old People’s Home, and not the Omaha Plattdeutsche Verein, became the designated object of testator’s bounty.

The petition discloses that the German Old People’s Home was a charitable corporation organized for the purpose of constructing and conducting a home for old people of German extraction. Testator’s purpose in making the gift was clearly limited to the building and maintaining of a home for old people of German descent, which the Omaha Plattdeutsche Verein had planned to establish in Omaha.

There is a suggestion in the record that the rights of the parties were changed by the contract made subsequent to the death of Henry Rohlff. We do not think so. An agreement as to the amount of the present liability in lieu of the contingent interest of the German Old People’s Home in the residuary estate of the deceased donor in no way affects the legal rights of the parties. “The trust itself is not and cannot be affected by any compromise as neither the court nor the litigants have power and authority to change its nature and purpose. Neither can the use be diverted by the beneficiaries for the time being through an agreement or arbitration. They cannot alien it, for the property is not theirs to sell. They cannot donate it, for the title is not in them. They cannot misapply it, for the use for which 'it was created cannot be changed. But, while this is true, the right to compromise a controversy in a proper case is undeniable. Where, therefore, a charitable gift is contingent on certain events, the trust is not perverted by a compromise agreement through which the trustees receive a certain definite amount of property impressed with the same trust in lieu of the contingent interest.” Zollman, Charities, 431. See, also, Johnston v. Osment, 108 Tenn. 32, 65 S. W. 23.

It is urged by defendants that the will provides for an [641]*641absolute gift to the German Old People’s Home. The plaintiffs contend that a charitable trust was created. The general rule is that a bequest in the form of a trust to a charitable corporation organized for the same charitable purpose as that shown in the purported trust is not technically a trust. It is a gift to the charitable corporation to accomplish the purposes of the corporation, but is equivalent to a bequest upon a charitable trust. The question then arises whether it is subject to conditions subsequent, as in the case of a charitable trust created for a specific as distinguished from a general charitable purpose.

The petition alleges that the German Old People’s Home was a charitable corporation which was organized prior to the death of testator on November 19, 1925.

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Bluebook (online)
10 N.W.2d 686, 143 Neb. 636, 1943 Neb. LEXIS 130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rohlff-v-german-old-peoples-home-neb-1943.