Continental Illinois National Bank & Trust Co. of Chicago v. Art Institute of Chicago

94 N.E.2d 602, 341 Ill. App. 624, 1950 Ill. App. LEXIS 408
CourtAppellate Court of Illinois
DecidedOctober 17, 1950
DocketGen. No. 44,967
StatusPublished
Cited by4 cases

This text of 94 N.E.2d 602 (Continental Illinois National Bank & Trust Co. of Chicago v. Art Institute of Chicago) 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
Continental Illinois National Bank & Trust Co. of Chicago v. Art Institute of Chicago, 94 N.E.2d 602, 341 Ill. App. 624, 1950 Ill. App. LEXIS 408 (Ill. Ct. App. 1950).

Opinion

Mr. Presiding Justice Schwartz

delivered the opinion of the court.

The Continental Illinois National Bank and Trust Company of Chicago, as executor and trustee, filed its complaint in the circuit court of Cook county, asking for construction of the will and codicil and of an inter vivos trust made by Daniel D. Van Degrift.

The principal issue involves the disposition of the residuary income derived from the inter vivos trust and the will, b.oth the Art Institute of Chicago (hereinafter called Art Institute) and the Shriners Hospitals for Crippled Children, Chicago unit (hereinafter called Shriners), claiming to be the sole beneficiary of this residuary income. The third defendant, Homer D. Chatmon, makes claim to a gift of $100 per month. His claim rests on the same theory as that of Shriners. The chancellor having found for the Art Institute, Shriners and Chatmon have appealed.

On October 16, 1930, Daniel D. Van Degrift (hereinafter referred to as Dr. Van Degrift, that being the manner of his designation both in the briefs and abstract) created an inter vivos trust, naming the Continental Illinois National Bank and Trust Company of Chicago as trustee (hereinafter called trustee). He deposited securities with the trustee which at the time of trial were valued at $354,000. He died on May 31, 1946, leaving a will and codicil, by the terms of which he bequeathed his property valued at $165,000 to the trustee under the inter vivos trust to become part of the corpus of the trust.

By Article Third of the trust instrument, he reserved the income for life, made a number of gifts to the Art Institute for specific purposes, and then gave the Art Institute the income from the remainder for the purchase of works of art. He reserved the right to amend the trust instrument by a writing to be signed and acknowledged by him and delivered to the trustee. Pursuant to that right, he made nine amendments before his death in 1946.

In February 1931, he cancelled Article Third and substituted a new Article Third, which made gifts to certain friends, relatives and charities, including Shriners and Chatmon. However, he preserved the specific gifts and the gift of residuary income to the Art Institute, as set forth in the original instrument. In November 1931, he cancelled a subsection of Article Third, which gave $5,000 to Eleanor J. Shewell, and substituted a provision giving that amount to his niece, Mrs. Ethel Manley Long. Two other amendments, one adding to and one withdrawing property from the corpus, were made in November 1931.

On February 27, 1934, he cancelled Article Third as amended February 6,1931 and November 11,1931, and substituted a new Article Third, under the terms of which, after making gifts to various relatives and friends (including Chatmon, whose gift was increased from $50 to $100 per month for life), he gave the residuary income to Shriners. He ratified and confirmed the trust instrument as thus amended.

On February 19, 1936, he cancelled the amended Article Third and substituted a new article reinstating Art Institute as the beneficiary of the residuary income. The ratification clause approved and confirmed the trust instrument as theretofore from time to time amended.

On August 12, 1943, after referring in the preamble to the trust instrument, he cancelled subparagraph (2) of paragraph (b) of Article Third, which gave $5,000 to Thomas C. Van Degrift, and subparagraph (2) of paragraph (c) of Article Third, which gave $100 per month to Charles R Van Degrift. He then ratified the agreement as dated October 16, 1930. No amendments were referred to.

On June 25, 1945, he made an amendment which constitutes the principal basis for the contention of appellants herein. This amendment starts with a preamble as follows:

“Know all Men by These Presents, that I, Daniel D. Van Degrift . . . exercising the right and power reserved to me ... by the trust instrument . . . dated October 16,' 1930, as heretofore amended by amendments dated February 6, 1931, November 11, 1931, February 27,1934, and August 12,1943, do hereby amend said trust agreement in the following manner: ’ ’

Then, in specific words he cancelled paragraph (b) and subparagraphs (1) to (6) thereof, of Article Third as amended and substituted specific gifts to five relatives and friends. By a second paragraph, he gave Ethel Deacon Orr $200 per month, an increase from $100. By a third paragraph, he provided for the payment of taxes out of the principal of the estate. A ratification clause followed, in these words:

“As thus amended, I hereby ratify, approve and confirm said trust agreement dated October 16, 1930, as heretofore amended by amendments dated February 6, 1931, November 11, 1931, February 27, 1934, and August 12, 1943.”

It will be noted that although the 1936 amendment was in effect at that time, it was not referred to.

On September 7, 1945, he executed an amendment which in its preamble and in its ratification clause followed the June 25, 1945 amendment. In the body thereof, he cancelled a provision giving $5,000 to Samuel J. Hartt and gave that amount to Thomas C. Van Degrift, Jr.

The will, made on August 12, 1943, described the trust instrument as dated October 16, 1930 and as amended August 12, 1943. It referred to no other instrument. On September 7, 1945, he executed a codicil which described the trust instrument as the trust agreement of October 16,1930, as amended February 6,1931, November 11, 1931, February 27, 1934, August 12, 1943, June 25, 1945, and September 7, 1945. He then ratified and confirmed the will dated August 12, 1943, except as modified by the codicil.

Two questions arise in this case:

1. Was the gift of the residuary income to the Art Institute made by the amendment of February 19,1936, expressly or impliedly revoked by the failure to refer to the 1936 amendment in the ratification clause of the June 25, 1945 amendment?

2. Did the residuary estate passing under the will and codicil of Dr. Van Degrift become part of the inter vivos trust, and did the 1936 amendment apply to the property passing under the will and codicil, as well as to the property comprising the corpus of the trust estate?

The trial court, over objection, admitted extrinsic evidence and found that the amendment of February 19, 1936 was a valid part of said trust instrument as amended and that the gift to the Art Institute was never revoked; that the decedent intended his residuary estate to become part of the corpus of the inter vivos trust, of which the 1936 amendment was a valid part, and that the 1936 amendment therefore applied to the property passing under the will and codicil.

The evidence reveals clearly that the omission of the 1936 amendment from the ratification clauses of the June 1945 and September 1945 amendments and the September 1945 codicil was the result of an error. In 1943, Mr. J. Leslie, assistant secretary of the trustee bank, had taken charge of this trust. He had succeeded H. J. Fairweather, who had charge at the time of the making of the trust and for some years thereafter. Leslie testified that when Dr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pinson v. Allstate Insurance Co.
386 N.E.2d 638 (Appellate Court of Illinois, 1979)
Butz v. Butz
299 N.E.2d 782 (Appellate Court of Illinois, 1973)
Continental Illinois National Bank v. Llewellyn
214 N.E.2d 471 (Appellate Court of Illinois, 1966)
CONTINENTAL ILLINOIS NAT'L BANK & TRUST CO. v. Art Institute
94 N.E.2d 602 (Appellate Court of Illinois, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
94 N.E.2d 602, 341 Ill. App. 624, 1950 Ill. App. LEXIS 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-illinois-national-bank-trust-co-of-chicago-v-art-institute-illappct-1950.