Thorne v. Continental National Bank & Trust Co. of Chicago

27 N.E.2d 302, 305 Ill. App. 222, 1940 Ill. App. LEXIS 1086
CourtAppellate Court of Illinois
DecidedMay 20, 1940
DocketGen. No. 40,808
StatusPublished
Cited by3 cases

This text of 27 N.E.2d 302 (Thorne v. Continental National Bank & Trust Co. 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
Thorne v. Continental National Bank & Trust Co. of Chicago, 27 N.E.2d 302, 305 Ill. App. 222, 1940 Ill. App. LEXIS 1086 (Ill. Ct. App. 1940).

Opinion

Mr. Justice McSurely

delivered the opinion of the court.

This case involves the validity of a provision in the will of Gordon C. Thorne attempting to establish a charitable trust. The trial court held this provision void as in violation of the rule against perpetuities, ch. 30, par. 153, Ill. Rev. Stat. 1939 [Jones Ill. Stats. Ann. 135.02],

The Attorney General of the State appears in this court to support this provision of the will and is a proper party for this purpose. Attorney General v. Newberry Library, 150 Ill. 229,236; People v. Braucher, 258 Ill. 604, 608. The individual beneficiaries Marion Thorne, the widow of Gordon C. Thorne, and his minor son, Montgomery Ward Thorne, seek to sustain the trial court. Virginia Milner Thorne, plaintiff appellant has by stipulation been dismissed from the cause, without prejudice to the right of the Attorney General to appeal.

Leading up to the sole issue in the case it should be noted that in 1921, Katharine C. Camp executed three trust indentures, with the Continental Bank as trustee; in two of these trusts she provided that the income of the trust property should be paid to her son Gordon C. Thorne for his life, and upon his death the remainder should be delivered as he might provide in his last will; in the third trust Mrs. Camp reserved the entire net income to herself for life and upon her death the income, subject to certain annuities, should be paid-to her son Gordon C. Thorne during his natural life and upon his death should be paid as he might provide in his last will.

Katharine C. Camp died January 4, 1930, and thereafter Gordon C. Thorne received the income of all three trusts until his death January 28, 1938; he left a last will and codicil in which he attempted to exercise the powers of appointment vested in him by the abovedes.cribed trust indenture. By this will he provided, among other things, that the trust funds remaining after the payment of certain legacies should go to the Continental National Bank and Trust Company as trustee, with a life estate in one-half the income to his widow Marion Thorne and the other one-half to his minor son, Montgomery Ward Thorne, who was born October 17, 1933, more than 12 years after the execution of the last Katharine C. Camp trust.

The appellees assert that the only paragraph of the will involved in this proceeding is tenth (b), as it is the only paragraph in which the charitable bequests represented by the Attorney General are mentioned.. This provides that if after the date of the death of both the testator’s wife and son the testator should have no lawful descendants surviving him, nor any possibility that such may thereafter be born, the trust should immediately terminate and the trust estate should be paid over absolutely as the survivor of his wife and son, in and by his or her last will and testament, may appoint, provided, however, that the survivor should appoint at least three-fourths of the trust estate for charitable purposes. In the event of the failure of the survivor to exercise such power of appointment the entire corpus of the trust estate shall be paid to the trustee to be used for charitable purposes.

Virginia Milner Thorne filed her complaint in the circuit court seeking to subject the estate funds to the payment of creditors of Gordon C. Thorne; the Continental Bank, as trustee, filed a counterclaim asking for a construction of the will of Gordon C. Thorne and raised the question, among others, as to whether paragraph tenth (b) did not violate the rule against perpetuities, which forbids the disposition of any property for longer than the term of 21 years from the death of such settlor; that under this paragraph the distribution of the trust estate might be postponed until the death of Montgomery Ward Thorne, who was not in being at the time the Katharine C. Camp trusts were executed and who might die more than 21 years after any life in being at the time of such execution. The trial court was in accord with this view and held that this paragraph was void, since the vesting of the remainder of the property is contingent on a life not in being at the time of the execution of the trust which created the power of appointment, thus violating the rule against perpetuities, citing Northern Trust Co. v. Porter, 368 Ill. 256. In that case the Supreme Court discussed the divergent views as to when the period of the rule must be computed. The court said that the great weight of American decisions supports the view that the period of perpetuities begins to run from the date of creation of a general testamentary power. The opinion discussed the question at length and concluded that the period of the rule must be computed from the time of the creation by the donor, which in the instant case would mean the creation of the trusts by Katharine C. Camp, which was more than 12 years before the birth of Montgomery Ward Thorne.

In Easton v. Hall, 323 Ill. 397, is a full discussion of the rule relating to perpetuities. At p. 408 the opinion says:

“The rule against perpetuities is, ‘that no interest is good unless it must vest, if at all, not later than twenty-one years after some life in being at the creation of the interest.’ (Gray’s Rule Against Perpetuities, sec. 201.) If the provisions of a will are such that under them a violation of the rule against perpetuities may possibly happen, then the devise of interests dependent upon such provisions is void. The time fixed by this will for the distribution of the funds of the trusty and its payment to the ultimate takers of the property of the estate was at the death of the last survivor of the beneficiaries of the trust for whom annuities were provided. If that time may possibly be more than twenty-one years after the death of the testatrix it is too remote for the gift over to be valid. ... The improbability of its occurrence after the prescribed time is immaterial. If it can possibly happen after that time an interest conditioned upon it is too remote. (Gray’s Rule Against Perpetuities, sec. 214; Tiffany on Real Prop. sec. 180.) ”

The Attorney General says that the will must be read as a whole and that paragraph tenth (a) must be read in connection with paragraph tenth (b), which gives alternative contingencies, and where a will limits a future estate upon alternative contingencies, one of which violates the rule against perpetuities and the other does not, the limitation will be upheld if the valid contingency occurs.

The general statement of the law relating to alternative contingencies is found in 48 Corpus Juris 945:

“b. Alternative Contingencies. When a future interest or estate is limited upon alternative contingencies, one of which must occur, if ever, within the period specified by the rule against perpetuities, and the other will or may occur after the expiration of such period, the limitation is not to be held invalid pending the determination of the event, and it will take effect or not according to the happening or non-happening of the former contingency.
“Double Contingency Distinguished.

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Related

Thorne v. CONTINENTAL NAT. BANK & TRUST CO.
151 N.E.2d 398 (Appellate Court of Illinois, 1958)
Thorne v. Continental National Bank & Trust Co.
151 N.E.2d 398 (Appellate Court of Illinois, 1958)
Cleveland Trust Co. v. McQuade
142 N.E.2d 249 (Ohio Court of Appeals, 1957)

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Bluebook (online)
27 N.E.2d 302, 305 Ill. App. 222, 1940 Ill. App. LEXIS 1086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thorne-v-continental-national-bank-trust-co-of-chicago-illappct-1940.