Berry v. Union National Bank

262 S.E.2d 766 (1980)

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Nature of the Case

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Facts

Clara died on June 20, 1975. P qualified as executrix. Clara created a private educational trust for the descendants of her late husband's brothers and sisters, giving her trustee absolute discretion to provide educational expenses for class members meeting certain criteria. The trust was to endure for twenty-five years after Clara's death or until the principal was reduced to less than $ 5,000.00, whichever should first occur. At termination, the principal and interest were to be distributed per stirpes to the then-living descendants of her husband's brothers and sisters. Union National Bank was named trustee. P recognized that the trust potentially violated the rule against perpetuities and entered into a trust termination agreement with the trustee. The agreement amended the twenty-five-year provision to twenty-one years and required the executrix to initiate a declaratory judgment action to determine whether the trust violated the rule against perpetuities and whether it was proper for the executrix and trustee to enter into a trust termination agreement. The trial court granted summary judgment for Ds finding that the trust provision violated the rule against perpetuities and was therefore void and without force. It held that P and the trustee were not authorized to enter into the trust termination agreement. P appealed.