Williams v. Williams

• Decision Date: 16 June 1939
• Docket Number: 745.
• Citation: 3 S.E.2d 334,215 N.C. 739
• Parties: WILLIAMS et al. v. WILLIAMS et al.
• Court: North Carolina Supreme Court

3 S.E.2d 334

215 N.C. 739

WILLIAMS et al. v. WILLIAMS et al.

No. 745.

Supreme Court of North Carolina

June 16, 1939

[Copyrighted Material Omitted]

R O. Everett and Robt. Holleman, both of Durham, for appellants.

Brooks McLendon & Holderness, of Greensboro, for appellees.

SEAWELL Justice.

W. H. Williams died April 15, 1927, leaving a last will and testament, the pertinent provisions of which are as follows:

"This my last will and testament provides for the disposition of my estate in the following manner and after due and full consideration of same by myself and wife, that my wife, Susan Denmark Williams, provided she survive me, shall have full possession of my estate, real and personal and life insurance to use for her comfort and benefit during the remainder of her life, and at her death the estate shall be held in trust for a period of fifty years, the income, only, to be divided between the trustees of the Universalist General Convention, a corporation of the State of New York; The Woman's National Missionary Association, an auxiliary of the Universalist General Convention, and the North Carolina State Convention of the Universalist Church.

"The trustees of this estate shall be composed of nine members which shall be chosen from the Executive Boards of the three organizations, named above, three from each, they shall be elected to hold office for a term of two years, these elections to be made at the sessions of the General Convention after the first board shall have served until the next succeeding session of the said General Convention.

"These trustees shall have full control over the estate for the term for which they were elected and until their successors are duly installed in office. They shall also have at their disposal the income from the estate after the necessary expenses for upkeep taxes, insurance and such other expenses as may become necessary from time to time to keep the property in a tenable condition, or for such improvements, in a permanent way, as may seem wise and desirable, shall have been paid from the gross income and before any division shall be made. The Executive board of each of these three organizations named above shall have the power to designate the disposal of their prorate part of the income, provided however that it shall be used only for the advancement of Universalism in the State, the Nation and at large.

"Should there arise any question as to what may be considered the advancement of Universalism it is my will that it shall be interpreted to be the teaching of the gospel under the directions, and as prescribed by the above mentioned the Universalist General Convention Board. It may also be used for building and repairing of churches or parsonages, making donations to colleges or universities of the Universalist faith, helping worthy young men or women to secure a college education when it is their expressed purpose to enter the Universalist University after their education in such schools shall have fitted them for work.

"Realizing the value of higher education for the specific work of teaching and enlightening others in Spiritual truths, and the ever growing necessity for new and better institutions of learning it is my will that should the Universalist denomination at any time within this period of trust establish a school in the State of North Carolina, under the auspices of the North Carolina State Convention of Universalist Churches and the Universalist General Convention, for the education of the youth of our land for better citizenship, or for the preaching of the gospel of Universalism as interpreted by the trustees of the Universalist General Convention, that the whole of the income from this estate, after the above mentioned expenses shall have been paid, shall be applied to the running expenses of such school for the remaining years of the trust.

"At the expiration of the period of trust (fifty years) the estate, with such increase as may have been added, shall become the property of such school as an endowment.

"The Board of trustees of such institution of learning shall be the judges of how this endowment shall be continued, whether in property or to be converted into cash, but should there be no such school established at the expiration of the trust period the estate may be disposed of in such manner as seems best to the trustees of the three organizations named above."

There were no children surviving the testator, and his wife died on March 29, 1933. The plaintiffs, the six brothers and sisters and representatives of deceased brothers and sisters, of the testator (with the exception of Miss Rosa Williams, a sister, who did not join), bring this action to declare the devise setting up the trust invalid upon the ground that it is void under the rule against perpetuities, and demand the possession of the estate as heirs-at-law of the decedent. The defendants maintain that the will creates a charitable trust inoffensive to the rule.

In this State charitable trusts are not subject to the rule against perpetuities. Griffin v. Graham, 8 N.C. 96, 9 Am.Dec. 619; State ex rel. Wardens of Poor of Beaufort County v. Gerard, 37 N.C. 210; Keith v. Scales, 124 N.C. 497, 32 S.E. 809; Whitsett v. Clapp, 200 N.C. 647, 158 S.E. 183. The Act of 1925, Chapter 264, Section 1, taking such trusts out of the rule of perpetuities, is in this respect but declarative of existing law. Limitations to and over from one charity to another, or to trustees for a charitable use, are not too remote, although the limitation may take effect after the period prescribed in the rule against perpetuities. See 48 C.J. p. 974, note 16; Hopkins v. Grimshaw, 165 U.S. 342, 17 S.Ct. 401, 41 L.Ed. 739; Institution for Savings in Roxbury, etc. v. Roxbury Home for Aged Women, 244 Mass. 583, 139 N.E. 301; Lennig's Estate, 154 Pa. 209, 25 A. 1049.

All this the plaintiffs concede; and further admit that the provisions of the will under consideration would have no infirmity in that respect, except for the provision contained in the last paragraph, intended to operate contingently in case of a failure to establish a school of the character described in the will during the fifty year period of the trust--"but should there be no such school established at the expiration of the trust period the estate may de disposed of in such manner as seems best to the trustees of the three organizations named above."

It is insisted that this breaks the continuity of the charitable trust, since, on failure of the contingent limitation to the school, the trustees of the three organizations named in the will have power to dispose of the trust property at their discretion without any limitation thereof, it is contended to a...