Opinion ID: 2458250
Heading Depth: 3
Heading Rank: 2

Heading: The Salvation Army had an alternative contingent remainder in a fee determinable.

Text: 3. The estate and heirs retained a possibility of reverter upon the termination of the fee determinable, which would end when the trust income was no longer serving the purposes for which the trust was created. Seen in this manner, the contingent remainder in the County vested as a fee determinable upon the formal resolution accepting the terms and conditions of the trust created for the Home; it could vest only if the County accepted these terms and conditions. Upon vesting in the County, the alternative contingent remainder in the Salvation Army was completely destroyed since it would vest only if the County had refused to accept the terms and conditions of the bequest, or in the testator's own words, if [the trust] is not so accepted ... then and in that event none of it shall take effect and the ... sum ... shall become a part of the residue of my estate, to be disposed of as hereinafter provided. (emphasis added) By creating distinct trusts for the benefit of each of these legatees, by imposing separate conditions on the continuance of these trusts, by imposing conditions precedent to the vesting of the trust in either legatee, and by independently and expressly reserving a reversionary interest for the estate, the testator clearly intended that once vested in a legatee, the trust corpus would flow through the reverter clause and not the residuary clause upon the determination of the fee. Whether taken by the County or by the Salvation Army, either legatee could obtain only a fee determinable in their trusts subject to a possibility of reverter in the testator's estate and heirs. Once the trust was accepted by the County, nothing was left to pour into the residuary clause; thus, the trust pertained only to the County and could never again become part of the residue of the estate. In this regard, we note that the precise words of the reverter clause state that [s]hould any one of the charitable or religious institutions named as beneficiary in this will cease to exist or to carry on its work, the sum herein given to it or set aside for its benefit shall revert to my estate and go to my heirs, and the trust pertaining to it shall cease.  (emphasis added) Once the County ceased to operate the Home, the trust pertaining to it ceased and the corpus reverted to the estate and passed to the heirs. We now turn to an explanation of these conclusions and then determine the application of the Rule against Perpetuities.