Texas Attorney General Opinion: V-958 Page: 4 of 10
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Hon. Robert S. Calvert, Page 4 (V-958)
is being loaned for the purpose of obtaining an educa-
tion. No educational organization has any right in the
"The argument is advanced by the attorney for
the estate that this is identical with bequests often made
to educational institutions, to be used by them as a loan
fund for needy students. This, of course, is not exact-
ly correct. In the latter type of cases, the bequest is
to the educational organization. In the instant case, the
educational organization has no claim whatever on this
tr us t fund.
"In view of the fact that we are uncertain as to
how this bequest should be treated, and also at the re-
quest of the attorney for the estate, the matter is being
referred to you for your attention and reply."
Article 7132, V.C.S., provides an exemption from inher-
itance taxes for propertyy passing to or for the use of the United
States or any religious, educational or charitable organization when
such bequest, devise or gift is to be used within this State."
We think that the funds established by Paragraph IX
stand en the same footing on one essential point. That is, we think
it necessary to first determine whether the establishment of this
trust can come within the statutory exemption which is allowed when
property passes "to or for the use of religious, etc., organi tions.*
If the property cannot be regarded as having passed to or for the
use of such an "organization", no part of the trust estate is entitled
There are no Texas cases in point, but numerous deci-
sions from other jurisdictions deal with the problem of whether
similar bequests are within variously worded exemptive provisions.
Where the statute provides for a deduction or exemption of prop-
erty passing to religious, educational or c haritable institutions or
corporations ~ is generally held that the bequests or devises must
be made directly to such institutions or corporations. See In re
Price's Estate, 192 Wis. 581, 213 N.W. 477 (1927), and In re rp's
Estate, 83 Ind. A. 371, 147 N.E. 297 (1925). Even under" asiktte
bfti type, however, the highest court of Indiana allowed an exemp-
tion for property passing to a Trust Cempany where the will of the
decedent created administrative or governing boards through whom
the educational and charitable bequests were to be distributed,
Grittenber ger v. State Savings & Trust Co., 189 Ind. 411, 127 N.E.
552 (12S). The court r-egrded the Trust Company as a mere agent
through whom business was to be transacted and held that the tras-
tee in conjunction with the boards named in the will constlttted "a
governing body" of educational and charitable institutions within the
meaning of the statute.,
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Texas. Attorney-General's Office. Texas Attorney General Opinion: V-958, text, 1949; (texashistory.unt.edu/ark:/67531/metapth265777/m1/4/: accessed January 20, 2019), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting UNT Libraries Government Documents Department.