City National Bank v. Kelly

32 Ohio Law. Abs. 559
CourtOhio Probate Court of Franklin County
DecidedJuly 1, 1940
DocketNo. 81587
StatusPublished

This text of 32 Ohio Law. Abs. 559 (City National Bank v. Kelly) is published on Counsel Stack Legal Research, covering Ohio Probate Court of Franklin County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City National Bank v. Kelly, 32 Ohio Law. Abs. 559 (Ohio Super. Ct. 1940).

Opinion

OPINION

By McClelland, j.

This matter comes on to be heard upon the petition filed herein by The City National Bank & Trust Company, and Carl A. Eberst executors of the Last Will and Testament of Edmund P. Kelly, deceased, against Bess Mickiethwaite Kelly et, asking the Court for a declaratory judgment as to whether the creation of an irrevocable trust in favor of the testator’s adopted son constitutes a settelment as contemplated by §19504-49 GC, and, whether by virtue thereof the adopted child of the testator is denied the right to inherit a portion of the decedent’s property.

The Court finds that on August 12, 1932, Edmund P. Kelly executed a last Will and testament, the provisions of which are hereinafter set forth, and that on October 24, 1932, Edmund P. Kelly, and the defendant, Bess Mieklethwaite Kelly, through the courts of the State of Illinois adopted a child, and gave him the name of Dennis R. Kelly.

The Court further finds that on December 30, 1935, Edmund P. Kelly executed an irrevocable trust agreement for the benefit of the said Dennis R. Kelly, and by the terms of which the said City National Bank & Trust Company was made the trustee of the corpus of the trust. The will above referred to was admitted' to probate by the Probate Court of Franklin County, Ohio, and The City National Bank & Trust Company, together with Carl A. Eberst, qualified as co-executors of said will.

By the terms of his will, the testator, after directing the payment of his just debts and funeral expenses, makes provision for the erection of a mausoleum, the cost not to exceed the sum of $30,000.00, and in the next succeeding item he gives his wife a specific legacy in the amount of $10,000.00 in cash.

By the next item of his will he creates a trust in the sum of $10,000 for the maintenance of said mausoleum.

In Item 5 of his will he creates a trust of $5,000.00 with the Pontifical College Josephinum, as trustee, for charitable purposes.

By the next succeeding item, he gives to his wife all of his household furnishings, books, automobile, statuary, jewelry and personal wearing apparel.

After payment of his debts and the creation of the trusts hereinbefore mentioned, he provides that all the rest, residue and remainder of his estate shall go to The City National Bank & Trust Company of Columbus, Ohio, and Carl A. Eberst, as trustees for purposes therein named. The will further provides that upon the termination of said trust last above named, then the corpus shall be distributed by the trustees in equal portions to the following named persons and organizations:

[561]*561:. Bishop of the Catholic Church in and for the diocese of Columbus, Ohio.

2. To the Sisters of the Poor of St. Francis at 'St. Anthony’s Hospital, for the maintenance of said hospital in the City of Columbus, Ohio.

3. One share to the Sisters of the Poor of St. Francis for the maintenance of St. Francis Hospital.

4. To the Sisters of Good Shepherd, for the care and management of the convent of Good Shepherd, in the City of Columbus.

5. To the Dominican Sisters of the Sick Poor for the purposes therein named.

6. To Hawkes Hospital of Mt. Carmel, Columbus, Ohio, for the maintenance and operation of Hawkes Hospital of Mt. Carmel, in the City of Columbus, Ohio.

. By the terms of the trust agreement which was executed on December 30, 1935. and contemporaneous with the execution of said trust agreement, the said Edmund P. Kelly deposited with the City National Bank & Trust Company, certificates for six thousand shares of The Capital City Products Company, which shares at that time had a valuation of $126,000.00

The Trust Agreement contains the following language:

“The Trustee shall hold, manage and control the property at any time forming a part of the Trust Estate, with all the rights and powers herein granted to the Trustee, and subject to the rights hereinafter reserved with the Settlor. The net income derived hereafter from the investment and re-investment of the Trust Estate shall be accumulated, invested and be added to the principal of the Trust Estate until the adopted son of the Settlor, Dennis R. Kelly, arrives at the age of twenty-one (21) years, (born July 26, 1932). When said Son, Dennis R. Kelly, arrives at the age of twenty-one (21) years, the Trustee shall pay to him the net income received thereafter from the Trust Estate. Until said son arrives at the age of twenty-one (21) years the Trustee at the request of Bess M. Kelly, wife of the Settlor, and after her death at the request of the Guardian of the Son of the Settlor, may pay to said wife or Guardian for the benefit of said Son out of the income and/or principal of the Trust Estate such amounts as from time to time the Trustee in its absolute and uncontrolled discretion deems necessary and advisable for said son’s proper care, comfort, education, maintenance and support, having due regard to his station in life, manner of living and income from other sources. After said Son arrives at the age of twenty-one (21) years upon his request the Trustee in its discretion may pay to said Son out of the Trust Estate such part of the principal as it may deem just and reasonable for his proper care, comfort, education, maintenance and support, and at the times heretofore mentioned, if in the judgment of said Trustee it is advisable to mortgage, pledge or otherwise encumber the Trust Estate for the purpose of proper care, custody, education, maintenance and support of said minor son, Dennis R. Kelly, the said Trustee is hereby authorized to do so, and may loan from its own Commercial Department for this purpose, but if said Trustee does mortgage, pledge or otherwise encumber said Trust Estate it shall make a record on the books of the Trust Committee the reason or reasons for such mortgaging, pledging or encumbering, and said Trustee’s judgment shall be final.” * * *

At the time said Son, Dennis R. Kelly, arrives at the age of thirty-five (35) years the Trustee shall pay and distribute to him, to be his absolutely, the balance of income and principal then remaining in the Trust Estate.

The Trust Agreement also contains the following language:

“It is the intent of the Settlor that the Stock in The Capital City Products Company, its successors and assigns, be retained as an investment of the Trust after his death so long • as it is, in the judgment of the Trustee, for the best interests of the Trust.”

At the hearing of this matter it was disclosed by the Trustees that the cor[562]*562pus of the trust had been increased by interest additions, to the value of $135,-636.73, on December 29, 1938.

The Declaratory Judgment sought in this matter arises in the construction of §10504-49 of the Probate Code, with reference to the facts before the Court. The above named section contains the following language:

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Cite This Page — Counsel Stack

Bluebook (online)
32 Ohio Law. Abs. 559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-national-bank-v-kelly-ohprobctfrankli-1940.