Brief Fact Summary. Neher devised her property to the Village of Red Hook, in memorial of her husband, to be used as a hospital known as, “Neher Memorial Hospital.”
Synopsis of Rule of Law. When compliance with a grafted direction of a charitable purpose is impracticable, the court may execute the gift cy pres through a scheme framed by the court for carrying out the trust’s general charitable purpose.
Those are:(1) whether the debtor misrepresented facts in his petition or plan, unfairly manipulated the Bankruptcy Code, or otherwise filed his Chapter 13 petition or plan in an inequitable manner; (2) the debtor's history of filings and dismissals; (3) whether the debtor only intended to defeat state court litigation; and (4) whether egregious behavior is present.View Full Point of Law
Issue. Whether a trust that states that property to be used as a hospital for the Red Hook Village is the particular charitable purpose of the trust where the testator also states that she “directs the property to be incorporated in into the Village of Red Hook as a memorial to the memory of her beloved husband”?
Held. No. The trust has as general charitable purpose to use the property for the Red Hook village in dedication to her husband. The later expression is a direction as to the desires or intentions of the testator as to the manner in which the general gift is to be carried into effect. Therefore the direction that the property be used for a hospital may be ignored because compliance is impracticable since another hospital exists in the area and is serving the needs of the Village. The gift may be executed cy pres by the court for carrying out the general charitable purpose.
Discussion. The general charitable purpose was stated specifically in the trust to be for the village in her husband’s memory. The testator also described the use of the property as a hospital as a “direction.”