### T~EA~ORNEY GENERAL
OF%%XAS

June 5, 1961

HonorableRobert S. Calvert Comptroller of PublicAccounts Capitol Station Austin, Texas OpinionNo.

### WW-1073

Re: Taxability for inheritance tax purposes of bequests to be expendedby the ForeignMission Board of Southern Baptist Convention of Richmond, Virginia, for

DearMr. Calvert: the support of foreign missions.

We quote the following excerpt from your letter requesting the opinion of this office on the above captionedmatter:

"J.W. Kimbrough died testate a resident of Dallas County on April 28, 1959. Paragraph 4, Section B, of the decedent'swill reads as follows:
11(B. One-third thereof shallbe given to the Baptist Foundation of Texas as an endowment fund to be known as the J. W. and Utie KimbroughMemorial Fund, the net income therefrom to be paid annually, or at such shorter intervalsas may be deemed expedientby the said Baptist Foundationof Texas, to the Foreign Mission Board of the Southern Baptist Convention, Richmond,Virginia, for the support of foreign missions.'

"The tax on the abovebequest was assessed by this Department on August 25, 

### 1960,in the amount of 

### $1,573.17,

and at the end of the ninety-day period for paying the tax before a penalty accrues, the attorneys for the estateremitted all the tax assessed against this estate except the above sum assessed against the ForeignMission Board of the Southern Baptist Convention and furnished us with a commitment wherein the Foreign Mission Board irrevocably committed this bequest for use exclusively in the State of Texas.Honorable Robert S. Calvert, page 2 (WW-1073)

"It appears to us that the ForeignMission Board has violated the terms of the will when making this commitment,for the will specifically states that the bequest is for the support of foreignmissions. Furthermore, the ForeignMission Board waited until the assessmentwas made before they took any action to commit the funds for use in the State of Texas.

"In view of the above, please advisewhether
or not this bequest is exempt or taxable as provided in Article 

### 14.06.11

Article 14.06, Taxation General, is a re-codificationof Article 7lZ, Vernon’s Civil Statutes. The pertinentparts of Article 7122,which was in effect at the date of the death of the decedent in this case, read as follows:

"If passing to or for the use of the United States, to or for the use of any other person or religious, educational or charitableorganization
or institution, or to any other person, corporation or association not included in any of the classesmentioned in the preceding portions of the originalAct known as Chapter 29 of the General Laws of the Second Called Session of the 38th Legislature, the tax shallbe:
,t

. . . . "Provided,however, that this Article shall not apply on property passing to or for the use of the United States, or to or for the use of any religious, educational or charitableorganization, incorporated,unincorporated or in the form of a trust, when such bequest, devise or gift is to be used within this State. The exemption from the tax under the preceding provisions of this Article shall, without limiting its application under other appropriate circumstances,apply to all
or somuch of any bequest, devise or gift to or for the use of the United States, or a religious, educational or charitable organization,which is, in writing and prior to the payment of the tax, irrevocably committed for use exclusivelywithin the State of Texas or transferred to a religious, educationalor charitable organizationfor use exclusivelywithin this State."HonorableRobert S. Calvert,page 3 (WW,lO73)

The fact that the ForeignMission Board of the Southern Baptist Conventiondid not commit the bequest for use exclusively in Texas until after the tax was assessed is immaterial, as the statute quoted above only requires the commitment to be made "prior to the payment of the tax," whichwas done.

We cannotpresume that the Foreign Mission Board of the Southern Baptist Conventionhas expended, intends to expend,
or will expend, the bequest or any part thereof for any purpose other than "for the support of foreignmissions" and thereby violate the trust as provided in the will. Foreign missions couldbe supportedby the expenditure of funds in Texas and other states in variousways, for example: (a) paying the salaries and travel expenses of foreignmisaionarias while they are home on furlough, (b) furnishing a dormitory,tuition and other expenses of these furloughed missionarieswhile they are attending the Southern Baptist Theological Seminary at Fort Worth for further training in their foreign missionarywork, (c)paying (inTexas) the travel expense of foreignmissionaries to their foreign fields, (d) purchasinghousehold furnishings for foreign missionaries andmedicines,medical equiment and supplies to be sent to foreignmission fields, (ePpaying the salaries and travel expenses of field helpers in Texas who devote all their time to supportingforeignmissions, and (f)buying literature and publishing literature in the Board's own publishinghouse at El Paso for distribution in foreignmission fields.

We are advised that the ForeignMission Board of the SouthernBaptist Conventionhas, since its organization, expendedpart of its funds in Texas to pay for the items listed above, as well as many others--all of which are in "support of foreignmissions". We certainly cannotpresume that such an organizationwould expend the funds in questionfor uses other than "the support of foreign missions",which is the sole purpose of its existenceas well as the directmandate of the will.
Therefore, it is our conclusionthat the Mission Board of the Southern Baptist Conventionhas compliedwith tax-exemptionprovisions of the statuteby committing the bequest "for use exclusivelywithin the state of Texas" prior to the payment of the tax on such bequest, and that there is no basis for challenge of the Board's power to make such commitment of the funds under the language of the will above discussed.Honorable Robert S. Calvert,page 4 (WW-1073)

SUMMARY

Where bequest "for support of foreign missions"was unequivocably committedfor
use exclusivelywithin this State prior to payment of tax and where the beneficiary expends funds in Texas in support of its foreignmission program, such beneficiary would have power under the terms of the bequest to make such commitment and thereby render the bequest exempt from taxation under the provisions of Article 7122,V.C.S.

Yours very truly,

WILL WILSON Attorney General of Texas



### W:
Assistant

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APPROVED:

OPINION COMMITTEE: W. V. Geppert, Chairman

L. P. Lollar Joe Osborn Arthur Sandlin Linward Shivers

REVIEWED FOR THE ATTORNEY GENERAL By: Morgan Nesbitt