Mohler v. Wesner

47 N.E.2d 64, 382 Ill. 225
CourtIllinois Supreme Court
DecidedJanuary 19, 1943
DocketNo. 26973. Reversed and remanded.
StatusPublished
Cited by11 cases

This text of 47 N.E.2d 64 (Mohler v. Wesner) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mohler v. Wesner, 47 N.E.2d 64, 382 Ill. 225 (Ill. 1943).

Opinion

Mr. Justice Wilson

delivered the opinion of the court:

Catherine M. Reinoehl, a resident of Crawford county, died testate on June 22, 1940. Her last will and testament was admitted to probate in the county court. By her will, the testatrix devised and bequeathed all her property to E. C. Wesner, as trustee, and empowered him to manage, control, collect, sue for, sell and convey the property as he deemed proper and to invest and reinvest the corpus of the trust at his discretion. After deducting the costs, taxes, expenses and charges of the trust estate, the trustee was directed to pay to Edward Mohler, nephew of the testatrix, forty per cent of the income during his life and to pay to each of his children, Harvey, George, Paul and Ruth Mohler, ten per cent of the income during the life of Edward Mohler and until Ruth Mohler attains the age of twenty-one years. The will provided further that in the event of the death of any of Edward Mohler’s children during the term of the trust, his or her part shall go to his or her heirs, during the remainder of the term. Upon the death of Edward Mohler, during the term of the trust, the testatrix provided that his children shall each receive twenty per cent of the balance of the income. Upon the death of Edward Mohler and the attainment of the age of twenty-one years by his daughter, Ruth, whichever be the latest, it was provided that upon the happening of both events, “said trustee shall make distribution within one year of whatever remains of my said estate, equally between the said Harvey Mohler, George Mohler, Paul Mohler and Ruth Mohler, provided, however, that if any of them should have died during the term of this trust, then and in that event, the part given to such one who has departed this life shall go to his or her heirs-at-law, as of the date of the termination of this trust.” Wesner, also named as executor, has assumed his duties as trustee. Paul Mohler has died, leaving his father Edward, and his brothers, George and Harvey, and his sister, now Ruth Mohler Herman, as his only heirs-at-law. Ruth Herman has attained the age of twenty-one years. October' 10, 1941, Edward Mohler addressed a communication, in the nature of a verified waiver, to Wesner, as trustee, announcing that he waived all his rights under the will, “and to any and all payments which might become due to me under said will, and you are authorized to make distribution of all of said trust estate among the ones entitled thereto; as provided for in said will, the same as though I had died.” The document concluded, “I hereby waive all claims to any part of said trust estate or the incomes therefrom and in event distribution of said trust estate is made among those entitled thereto, I hereby release you from any claims whatsoever as far as my rights in said trust estate is concerned.”

October 30, 1941, the plaintiffs, Edward, George and Harvey Mohler, and Ruth M. Herman, filed their complaint in the circuit court of Crawford county, alleging that they constituted all the parties interested in the trust estate; that each of them was more than twenty-one years of age, under no legal restraint or restriction; that they were all the heirs of Paul Mohler, deceased; that Ruth M. Herman has attained the age of twenty-one years, and that since Edward Mohler has waived his claims to any of the income from the trust property and has consented to its distribution among the three persons entitled thereto, free from any claims on his part, the same as though he had died, the further continuance of the trust and the necessity therefor have ceased. The relief sought was an accounting by the trustee, a termination of the trust, and a decree directing defendant, as trustee, to make distribution of the trust property in his hands among the plaintiffs entitled thereto according to the. will of Catherine M. Reinoehl. Defendant’s motion to dismiss the complaint was overruled. By his answer, defendant denied that plaintiffs were all the parties in interest, averring that he was vitally interested in the property, the legal title vesting in him, subject to its control and distribution under the will. Answering further, defendant averred that the trust created was an active trust rather than a passive or dry trust; that the testatrix left considerable real estate and personal property requiring care, supervision and attention of some competent person, and that the testatrix having designated him trustee he was entitled to protection by the court in the performance of his duties. Defendant asserted that under the will the trust could not be terminated because the title to all the property never was and is not now vested in plaintiffs or either or any of them, but that twenty per cent of the corpus of the trust is legally and rightfully in his hands, as trustee, and must remain so until both contingencies contained in the will have occurred; that the second has not happened since Edward Mohler is still living, and thus twenty per cent of the estate was removed by the testatrix herself, as she had a right to do, from the operation of any act of plaintiffs, and that the trust cannot be terminated as sought by plaintiffs until the property is all vested in them and nothing else remains to be done in the trust. Finally, defendant averred that the trust created by the will is a spendthrift trust. Plaintiffs’ motion to strike the answer was sustained, defendant elected to abide by his pleading and a decree was entered ordering an accounting by defendant, as trustee, terminating the trust and directing the trustee to make distribution of all the trust funds to plaintiffs George and Harvey Mohler and Ruth M. Herman, according to their respective interests as provided in the will. Defendant has prosecuted a direct appeal to this court, a freehold being necessarily involved.

To obtain a reversal of the decree, defendant makes the contention, among others, that the will created a spendthrift trust. It is true, as contended, that it is unnecessary to the creation of a spendthrift trust that the cestui que trust be denominated a spendthrift or that the testator assign his reasons for creating the trust, or that the will contain all restrictions and qualifications incident to the trust. On the other hand, it is usual in such trusts to find a provision against alienation of the trust fund by the voluntary act of the beneficiary, or in invitum by his creditors. (Wagner v. Wagner, 244 Ill. 101; Bennett v. Bennett, 217 id. 434.) Here, the will contains no expression, express or implied, to the effect that the trust created is a spendthrift trust. In the absence of specific language dedaring the trust a spendthrift trust or language from which such an intent might reasonably be inferred, there is no basis for the contention that the testatrix created, or intended to create, a spendthrift trust.

The decisive question presented is whether the circuit court had the power to terminate the trust created by the will of Catherine Reinoehl. Plaintiffs invoke the familiar rule that where all the parties are capable of acting, they can compel the termination of a trust although its purposes have not been fully accomplished. (Sutliff v. Aydelott, 373 Ill. 633; Botzum v. Havana National Bank, 367 id. 539; Burton v. Boren, 308 id. 440.) It is equally well established that where there are contingent interests in the trust which cannot be determined until the happening of certain designated events, or where the interests of minors are involved, or where a beneficiary objects, the trust will not be terminated.

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Bluebook (online)
47 N.E.2d 64, 382 Ill. 225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mohler-v-wesner-ill-1943.