Balch v. Attorney General

• Decision Date: 03 July 1899
• Citation: 174 Mass. 144,54 N.E. 490
• Parties: BALCH et al. v. ATTORNEY GENERAL et al.
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

174 Mass. 144

54 N.E. 490

BALCH et al. v. ATTORNEY GENERAL et al.

Supreme Judicial Court of Massachusetts, Suffolk.

July 3, 1899

COUNSEL

J.B. Warner, for J.W. & Belinda L. Randall Charities Corp.

F.T Hammond, Asst. Atty. Gen., for treasurer of Commonwealth.

OPINION

LATHROP, J.

The material facts in this case are these: On April 27, 1892 Belinda L. Randall made a deed of trust by which she gave to Francis V. Balch and William Minot property valued at $537,657, in trust to apply the income to the payment of annuities to certain persons during their lives, and of one annuity from and after the death of the settlor, and to pay the remainder of the income to the settlor during her life. The trust deed then provided for the disposition of the principal of the fund, after the settlor's death, as follows: "(3) At my decease the balance of the property (including the portion, if any, set aside for annuities, as they fall in) shall be applied by my trustee to such charitable purposes as shall be determined by a board to be called the 'Board of the J.W. Randall Fund,' which I desire to consist of at least seven members." The deed then nominated certain persons as the original members of the board, and proceeded as follows: "My wish is that they shall either apply the fund in whole or part to some charitable object, such as a trade or industrial school, or other charitable purpose they may think preferable, or shall apply the income from time to time, for charity or in aid of charitable institutions, in such way as they deem best. If they think best, the fund, in whole or part, may be transferred to any corporation or body organized for like charitable purposes to those they wish to carry out, and in such case the board may dissolve or continue itself as a board of visitors. I hope that in any case my brother's name may be connected with the use that may be determined on." The deed gave the trustees the right either to transfer the property to the board, or to act as the business administrators of the fund, "with all the powers herein given, as the board may deem best." The settlor further reserved to herself full power at any time to revoke or alter the provisions of the instrument by any writing or writings signed by her, and witnessed by three witnesses. The trustees accepted the trust, and administered the property as directed during Miss Randall's life paying the annuities, and also paying the net income to her. On March 14, 1897, Miss Randall died, leaving a will and three codicils, which were admitted to probate on April 1 1897. These testamentary instruments affected some of the annuities only, and are immaterial to the question before the court. The persons named in the deed of trust as members of the board of the J.W. Randall fund, with the exception of one, accepted the trust. In April, 1897, the members of that board determined that it was expedient to organize themselves into a corporation, and that the fund held by Messrs. Balch and Minot as trustees for charitable purposes under the deed of trust should be paid over by the trustees to such corporation, and held and applied by it to charitable uses. Accordingly an agreement of association, dated May 8, 1897, for the purposes of incorporation under the general laws of this commonwealth, was signed by all the members of the board; and pursuant to this agreement the J.W. & Belinda L. Randall Charities Corporation was incorporated, and a certificate of such incorporation issued, under date of June 11, 1897,--the purpose of the incorporation being stated to be that "of administering and applying the fund created by the deed of Belinda L. Randall, dated April 27th, 1892, recorded with Suffolk Deeds, lib. 2406, fol. 497, for the charitable purposes by her thereby directed or authorized." Messrs. Balch and Minot, trustees, applied so much of the principal of the trust fund in their hands as was necessary to the payment and satisfaction of the annuities, legacies, and other charges outside of the charitable trust imposed on said fund by the said trust deed or the said will, and paid over to the corporation, to be applied to charitable purposes according to its charter, the sum of $349,499.02, which was the entire principal of the trust fund available for charities, except securities valued at $26,359.51, which securities Messrs. Balch and Minot have retained to await the decision of the court as to the liability of the trust fund to taxation under the statutes taxing collateral legacies, and any of said securities not needed for the payment of such tax are to be paid over...