In re Mary R. Latimer Trust
2013 Del. Ch. LEXIS 212
| Del. Ch. | 2013Background
- Settlor Mary R. Latimer created a trust in 1924 to maintain two burial lots in a Delaware cemetery, funded with $5,000.
- The Trust directs net income to maintain the burial lots and surrounding features, with excess income to accumulate for renewal or defense against condemnation and potential relocation of bodies.
- Cemetery and Trustee seek court modification under cy pres (common law and statutory) and deviation to divert funds to cemetery maintenance.
- Trust is a noncharitable burial-site trust under Delaware law; the petition asserts the trust’s funds are ample and should be used to support the cemetery generally.
- Delaware law provides limited grounds for modification, requiring unlawful purpose or no longer serving a purpose; the court denied modification.
- The court concluded the Trust remains lawful and fulfills its stated charitable/noncharitable purpose, so modification is not warranted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether common law cy pres applies to modify the trust | Latimer’s intent supported broader cemetery support | Wilmington/PNC contend cy pres allowed due to excess funds | Not applicable; private burial trust not subject to cy pres |
| Whether statutory cy pres under 12 Del. C. § 3541 applies | Section 3541 allows modification when purpose becomes unlawful or impracticable | Section 3541 does not authorize burial lot trusts and cannot be used to broaden purpose | Inapplicable to burial lot trust; cannot modify under § 3541 |
| Whether the deviation doctrine allows modification | Deviation could permit using funds for cemetery maintenance | Compliance with original terms not impossible; deviation not warranted | Not available; terms feasible and purpose remains intact |
| Whether the trust is charitable or noncharitable affects modification | Some states deem cemetery maintenance charitable; broader public benefit | Delaware law treats burial-site trusts as noncharitable | Under Delaware law, burial lot maintenance is noncharitable; cy pres not available to modify |
Key Cases Cited
- Security Trust Co. v. Willett, 97 A.2d 112 (Del.Ch.1953) (trust for family burial lots not inherently charitable; cy pres not available)
- Anderson v. Mount Zion Cemetery Ass’n, 184 A.2d 86 (Del.Ch.1962) (burial site trusts not inherently charitable; public policy recognized but not charitable focus)
- In re Estate of du Pont, 663 A.2d 470 (Del.Ch.1994) (guidance on cy pres and charitable vs noncharitable purposes)