Article Archives >> Lead Stories >> May 1-15, 2007
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Charitable Trustees Removed
For Multiple Breaches of Duty
Professionals used one trust to pay costs of others,
created an unauthorized endowment at University
The Supreme Judicial Court of Massachusetts has affirmed the removal of two professional trustees for multiple breaches of duty in managing a group of charitable trusts created in 1924 upon the death of Lotta M. Crabtree, a well-known vaudeville star and stage actress of her day. (In re: Trusts Under the Will of Lotta M. Crabtree, No. SJC 09787, 5/14/07.)
She created eight separate trusts for specific charitable purposes upon her death and seven continue in operation today. (One for the benefit of service personnel of the First World War terminated after 40 years.) The largest, with current assets of about $4 million, was created to provide interest free loans to graduates of what is now the University of Massachusetts to follow agricultural pursuits, and if there were insufficient requests for loans, to provide scholarships. The others, with a total current value of about $3.8 million, were for various other charitable purposes.
Article Archives >> Lead Stories >> May 1-15, 2007
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