Jennings v. Hills

247 Ill. App. 98, 1927 Ill. App. LEXIS 44
CourtAppellate Court of Illinois
DecidedDecember 27, 1927
DocketGen. No. 31,619
StatusPublished
Cited by5 cases

This text of 247 Ill. App. 98 (Jennings v. Hills) 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
Jennings v. Hills, 247 Ill. App. 98, 1927 Ill. App. LEXIS 44 (Ill. Ct. App. 1927).

Opinion

Mr. Justice Gridley

delivered the opinion of the court.

The main contention of appellants’ counsel is that the circuit court erred in dismissing complainants’ amended bill for want of equity, because, by virtue of the transactions and decrees of 1908, the three charitable corporations in consideration of their releases each received $40,000, and there resulted a large ‘1 saving” to the estate ($653,747.05, as found by the master) which became intestate property and should be distributed accordingly.

When said 1908 decrees were entered the probable termination of the trust under the will of Jonathan Clark was about 51 years thereafter. When that time arrived, as provided in the will, one-half of the property in the hands of the trustees, including accumulations, was to be distributed to his then living descendants, and the other half to the three charitable corporations. And, as we understand counsels’ argument, it is that, as at the expiration of the trust period the living descendants were limited to receiving only one half of the property, and as the total sum ($120,000) received by said corporations was paid out of the funds of the estate, and as said sum was much less than half of the value of the testator’s property in 1908, after talcing into account the property set apart to the widow in settlement of her claims, and other proper deductions, the difference (whatever it may be found to have been) between said half of the value of said property and said sum of $120,000 became intestate property and should now be distributed.

We cannot agree with the contention or argument, and, after reviewing the provisions of the will, the .1908 decrees and the evidence, we are of the opinion that the decree, dismissing complainants’ bill for want of equity, was warranted under the law and the evidence. And we think that the court’s findings in the decree, also, were warranted. Some of these, findings are, substantially, that the 1908 transactions and decrees did not result in any saving which became intestate property or otherwise subject to distribution; that, if there was a saving, it, under the terms of the will, could only be distributed at the expiration of the trust period to the then living descendants of the testator; that the widow and the other heirs, by paying $120,000 from their personal funds to the .three corporations, purchased the then vested rights and interests of the corporations in the testator’s property and future accumulations ; that the bargain was not one between the corporations and the trustees; that no showing has been made that the purchase was unlawful or prejudicial to the interests of any of the present complainants ; ánd that, in any event, the 1908 decrees are res adjudicaba of all these questions.

To support their contention appellants ’ counsel place great reliance upon the case of Dunham v. Estate of Stephens, 190 Ill. App. 554, decided by the third district. That case involved the question whether the difference between the amount certain legatees would have received under a will, and the amount for which they sold and assigned, their legacies, became intestate property and descended to the testator’s heirs-at-law. The court held that, as the amount paid to said legatees for their interests under the will came from the funds' of the estate, and as a large sum thereby was saved to the estate, the money so saved “became intestate estate and should descend accordingly.” But the facts, upon which the court’s holding was based, differ materially from those in the present case, where, instead of the estate acquiring the interests of the settling legatees, those interests were purchased out of funds belonging to other beneficiaries under the will, and subject to the general trust provisions of the will. In the present case, there was a pending contest over the validity of the will, and also family disputes and differences, and a bargain or compromise agreement was made between all the beneficiaries of the will whereby a decree should be entered sustaining the will, and certain beneficiaries should receive money in consideration of their releasing all their rights and interests under the will. Such compromise agreements are favored by courts of equity. (Cole v. Cole, 292 Ill. 154, 165; Hall v. Hall, 125 Ill. 95, 101; McDole v. Kingsley, 163 Ill. 433, 437.) Furthermore, in the present case, it appears that the bargain (including the other elements of the entire settlement transaction) was confirmed by a decree of a court of equity in July, 1908, and that the bargain, and the entire compromise settlement as agreed to by all parties in interest, was consummated shortly thereafter. In the opinion of the court in the Dunham, case it appears that the agreement in that case “contains no intimation that any person is to secure the benefit of the assignment of the legacies” of those beneficiaries who settled. In the present case it is otherwise. Under the terms of the will of Jonathan Clark, a trust for accumulation, so to speak, was intended and provided for. As stated in the will, he believed it would be for the best interests of the named beneficiaries that his property be held by the trustees “undivided, as long as possible.” He directed that the trust should not terminate until 20 years after the death of the last survivor of his widow and five children. He further directed that the “surplus” of the net income of the property, after paying the expenses, annuities, etc., “may he invested by said trustees from time to time, * * * either in erection of buildings upon any lands I may hold under ground leases, * * * or in repairing or rebuilding any of such buildings, * * * or in the purchase of the fee simple title to any of the lands of which I may hold a ground lease, or in safe, interest bearing securities.” In the July, 1908, decree, the terms and elements of the compromise agreement were fully set forth. In addition to those terms and elements, which we have mentioned above in our statement of the case, were the following, as found in said decree: “The said compromise agreement further contemplates and indudes the provision that when the same shall have been carried into full effect by grants, assignments, releases and payments, * * * all the remainder of the said property not conveyed or assigned to Alice Clark shall remain in the hands of the trustees * * * subject to the trusts of said will in all respects. (Except in respect to such trusts as are by the will created for charitable uses, which charitable trusts are hereby adjudged to be wholly extinguished so far as concerns the trustees under said will and the other beneficiaries thereunder, by and upon the payment to said charitable corporations of said sum of $40,000 each, as herein provided), said property so remaining in the hands of said trustees under said will to be dealt with as in said will directed, during the entire period of said trust, but that the entire trust property as it then is shall be distributed at the expiration of said trust as required by the terms of said will among the then descendants of Jonathan Clark, but none of any of said corporate legatees, or their successors, or persons claiming under them, * * *.”

It thus appears that in. the compromise agreement in the present case, confirmed by said decree, it was agreed between all the parties, including the present complainants, that, if there was any “saving” by virtue of said transactions, it was to be treated as a part of the remainder or residue of the testator’s estate and should be distributed at the expiration of the trust period among the then living descendants of the testator.

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Bluebook (online)
247 Ill. App. 98, 1927 Ill. App. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jennings-v-hills-illappct-1927.