The High Court has ruled that the residue of Joseph Daly’s estate is to be applied for charitable purposes, after considering evidence about his intentions when he made his will.
Mr Justice Paul Gilligan delivered the judgment on 27 July 2017 in proceedings brought by Michael Daly, one of four first cousins who could inherit under intestacy rules. David Murphy, a solicitor, was sued in his capacity as executor.
Daly’s will, made in May 2013, named Murphy as sole executor and left him the residue “to apply same for such purposes as my executor in his absolute discretion shall think fit”. The estate’s net value for probate was €922,941. The will also made pecuniary gifts totalling €257,000, including €15,000 to Michael Daly and €100,000 to the administrator of the General Hospital in Mullingar for patient facilities. The residue was estimated at about €650,000 on those probate figures.
Michael Daly asked the court to decide whether the residuary clause gave the executor an absolute gift, created a valid trust, or failed so that the residue would pass partly under intestacy rules. He also sought an order directing the executor to distribute to him the share he said he was entitled to by law.
The court found that the clause did not give the residue to Murphy personally, but did create a trust. It considered whether evidence outside the will could be admitted under section 90 of the Succession Act 1965 to clarify the testator’s intention and assist in construing an ambiguous clause. The judge held that both requirements had to be met.
Evidence before the court included the solicitor’s account of meetings with Daly and a letter explaining that the residue had not been restricted to charitable purposes. The judgment records that Daly wanted the executor to have discretion to support deserving people or organisations, including uses that might not automatically be charitable. The judge found, on the balance of probabilities, that the intended objects included both charitable and non-charitable purposes.
Applying section 49(1) of the Charities Act 1961, the court held that the non-charitable purposes fell away and the trust could be applied for charitable purposes. It answered that the trust was valid, that the residue was to be distributed for charitable purposes, and that the residuary gift did not fail or pass under partial intestacy. The request for a larger share for Michael Daly was refused.
The judge said he would hear counsel’s submissions on the form of the order to be drawn up.