Benthall v. McCabe

420 N.E.2d 1024, 95 Ill. App. 3d 1081, 51 Ill. Dec. 466, 1981 Ill. App. LEXIS 2563
CourtAppellate Court of Illinois
DecidedMarch 31, 1981
DocketNo. 80-30
StatusPublished
Cited by5 cases

This text of 420 N.E.2d 1024 (Benthall v. McCabe) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benthall v. McCabe, 420 N.E.2d 1024, 95 Ill. App. 3d 1081, 51 Ill. Dec. 466, 1981 Ill. App. LEXIS 2563 (Ill. Ct. App. 1981).

Opinion

Mr. JUSTICE JONES

delivered the opinion of the court:

At issue in this appeal is the validity of a family settlement agreement executed by the three children of the decedent, James McCabe. After his death on September 22,1978, his brother and sister, Francis McCabe and Betty June Luck, who were nominated as “joint-Executors and Joint Trustees” of his will, filed a petition, on October 1,1979, for the admission of the will to probate and for the issuance of letters testamentary. Thereafter, on October 16, 1979, the three children, Sheila Benthall, aged 31, James Edward McCabe, aged 19, and Colleen Marie McCabe, aged 18, executed a family settlement agreement disposing of the assets of their father’s estate in a manner different from that provided for by him in his will.

On October 17,1979, Sheila Benthall petitioned the court for issuance of letters of office to her as administrator of her father’s estate and for express approval of the family settlement agreement. In an order entered on December 14, 1979, the trial court found “[t]hat all the heirs of the decedent have entered into a bona fide Family Settlement Agreement which resolves any disputes as between them and provides for an amicable settlement of decedent’s estate” and “[t]hat the Family Settlement Agreement should take precedence over the Petition for Probate of Will so as to avoid unnecessary litigation and a potential contest of decedent’s will.” As a result of its findings, the trial court denied the petition for admission of the will to probate and issuance of letters testamentary and, at the same time, allowed the petition for the appointment of administrator to carry out the terms of the family settlement agreement, which the court expressly approved. From that order the co-executors and trustees designate appeal.

In his will James McCabe provided first for the payment of his debts and funeral expenses and then devised and bequeathed the remaining property to the trustees to be distributed in the following way:

“(a) To Sheila Benthall * * *, my daughter from my first marriage the sum of Twenty five hundred ($2500.00) dollars to be paid out of my savings account at the Granite City Trust and Savings bank, if there is therein remaining. And in addition all horsehold [sic] goods and furniture within the residence at 2112 Lynch ave. [sic], Granite City, Illinois.
(b) My funeral expenses shall first be paid by my TRUSTEES and EXECUTORS from my Savings account at Granite City Trust and Savings bank first before the sum mentioned in (a) shall be paid to my daughter Sheila Benthall from my first marriage.
(c) All the rest and residue of my estate then remaining shall be divided equally between my two children from my second marriage, namely, JAMES EDWARD McCABE and COLLEEN MARIE McCABE when they reach their 21st birthday, except my automobiles, a 1960 Cadillac and 1974 Ford which shall be turned over to my son JAMES EDWARD McCABE.
(d) If my two children from my second marriage are minors at the time of my decease my TRUSTEES shall create a TRUST FUND deposit at the Granite City Trust and Savings Bank and shall pay to JAMES EDWARD McCABE and COLLEEN MARIE McCABE, my two children the sum of Four Hundred Dollars ($400.00) to each toward their support and education until they reach the age of 21 years.”

A third provision of James McCabe’s will deals with his interest in a business partnership:

“Regarding my business being a full partner — Granite City Motor express [sic] — if this business is in existance [sic] at the time of my decease, my partner should have first option to purchase my interest therein.”

The family settlement agreement lists the following as the sole assets and debts of the estate of James McCabe:

“1. Three automobiles — 1977 Chevrolet Impala; 1974 Ford LTD; and 1973 Pontiac Graville [sic]: value — approximately $4,000.00
2. Residence — 2112 Lynch Avenue, Granite City, Illinois — approximate value $35,000.00.
3. Deposits in the Granite City Trust & Savings Bank in the amount of $36,752.54.
4. One-half interest in Granite City Motor Express — assets and liabilities unknown.
The sole debts of the estate known to the heirs are as follows: Visa Charge — $772.47, Glik’s Charge — $39.67, Funeral Bill— $2,666.35.”

Like the will, the family settlement agreement provides for the payment of any debts. It provides as well for the payment by the children of any inheritance taxes. Unlike the will, the agreement goes on to provide that James and Colleen “who are the children of Mary Maher McCabe shall receive as their separate property, any and all property that their father received from the estate of their mother, Mary Maher McCabe. Sheila Benthall agrees to transfer any interest that she might have to them by quit claim deed or assignment.” There is no indication in the record of the value of any property James McCabe received from the estate of Mary Maher McCabe. Nor is there any indication in the record that any such property is not included among James McCabe’s assets as they are listed in the family settlement agreement. The agreement further provides that “all other assets, after the payment of the debts of the estate, shall be equally divided between Sheila Benthall, James E. McCabe and Colleen McCabe” and that “any decision concerning the business of Granite City Motor Express shall be made by a majority vote of the three heirs.” James McCabe’s business partner is not a party to this agreement, and no mention is made of any option to purchase James McCabe’s interest in the partnership.

In Illinois courts look favorably upon the settlement of disputes among family members by agreement. (Anderson v. Anderson (1942), 380 Ill. 488, 44 N.E.2d 43.) Like any other contract, an agreement settling a dispute among family members over a decedent’s estate, to be valid, requires sufficient consideration. (Anderson.) Of such consideration the court in Anderson said,

“The disputes between rival claimants to an estate are fair subjects of compromise and settlement, and the mutual concessions of the parties for the prevention of litigation afford a valid consideration for the agreement. * * * It goes without saying, however, that there must be some reasonable or substantial basis for the claims advanced by the parties which are surrendered by the agreement.” (380 Ill. 488, 496, 44 N.E.2d 43, 47.)

The court in Wolf v. Uhlemann (1927), 325 Ill. 165, 183, 156 N.E. 334, 340-41, described with some particularity what constitutes a “reasonable or substantial basis” in such a dispute:

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Cite This Page — Counsel Stack

Bluebook (online)
420 N.E.2d 1024, 95 Ill. App. 3d 1081, 51 Ill. Dec. 466, 1981 Ill. App. LEXIS 2563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benthall-v-mccabe-illappct-1981.