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Court refuses to invade principal of trust

Court refuses to invade principal of trust

Court refuses to invade principal of trust

An appellate court in Pennsylvania has affirmed a trial court decision refusing to invade the principal of a charitable trust to help a beneficiary avoid insolvency. It has said that the charity’s financial position is its own responsibility and distribution of principal would be contrary to the donor’s intent. Lillian E. Loucks died in 1991 and devised the residue of her estate to a trust she had previously established in 1984. The trust provided income and such principal as necessary to her for her life, and provided several individual gifts upon her death. The residue was to be held in perpetuity to provide income to support the general charitable purposes of Otterbein United Methodist...

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