United States v. 3,000 Acres of Land, more or less, in Lawrence County

54 F. Supp. 511, 1944 U.S. Dist. LEXIS 2629
CourtDistrict Court, E.D. Illinois
DecidedJanuary 4, 1944
DocketNo. 274-D
StatusPublished

This text of 54 F. Supp. 511 (United States v. 3,000 Acres of Land, more or less, in Lawrence County) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. 3,000 Acres of Land, more or less, in Lawrence County, 54 F. Supp. 511, 1944 U.S. Dist. LEXIS 2629 (illinoised 1944).

Opinion

LINDLEY, District Judge.

The controversy here is as to the distribution of funds deposited as just compensation for the taking of tracts (1) and (13). The trustee appointed by decree of the Circuit Court of Lawrence County insists that he is vested with the title to the property and entitled to receive the compensation therefor. If he is not to recover, it will be necessary to determine various claims of other parties.

Albert P. Crews died May 4, 1917,. testate, seized and possessed of certain land. Under his will, duly admitted to probate, the two tracts mentioned were devised to his daughter Martha Ellen for life, with remainder to his executor in trust to sell and to divide the proceeds among his heirs. In 1942, knowing that the Government intended to take the land under its eminent domain power, the life tenant, having married one Wesner, filed in the Circuit Court of Lawrence County her complaint praying appointment of a trustee. She made defendant all known heirs of her deceased father as well as all his possible unknown heirs. With jurisdiction of all interested parties, the court entered a decree in June, 1942, wherein it [512]*512found existing a possibility of unknown heirs at law of Albert P. Crews and a further possibility that, upon the death of plaintiff, there might be heirs of Crews not then born; that the testator had devised the property to plaintiff for life, provided, however, that at her death the executor should sell it and divide the purchase money equally among his heirs; that, upon the death of the life tenant, the testator, by another clause, devised to one son, a part of said premises consisting of sixty acres, provided the son should, within one year after the life tenant’s death, pay the executor $3,000, to be divided by the latter equally among the testator’s heirs, and provided further that if the son should not take advantage of his option within the specified period, the executor should sell the sixty acres and all other property devised to plaintiff and distribute the proceeds among testator’s heirs; that, because of the remainder created, it was impossible to know who would be the heirs of Albert P. Crews or the beneficiaries under his will; that, in order to sell the property to the Government, it was necessary to vest title in a trustee for the purpose of conveyance; that the amount offered by the Government was fair and should be accepted, and that, ascertainment of the heirs of Albert P. Crews being impossible, it was necessary to invoke the jurisdiction of Section SO of Chapter 22 of Illinois Revised Statutes, granting courts of equity power to create trusts where necessary to carry out the provisions of a will or otherwise and to have appointed a proper trustee to hold and invest* the moneys for the benefit of the persons who might become entitled thereto. Thereupon the court declared a trust, appointed a trustee, and vested in him as trastee the title to the property and directed him to convey it to the Government, to receive the consideration and to invest the corpus of the trust estate in securities of a certain character, upon approval by the court. The trustee qualified on August 12, 1943. No appeal was taken from the decree of the court, nor has any modification thereof ever been made or asked for.

The trustee contends now that, under the terms and provisions of the will, by virtue of the decree, he succeeded to the title; that the Government’s election to condemn worked an involuntary conveyance; that the deposited purchase money became a part of the trust estate vested in the trustee and that the court should direct the same to be paid to him. It is contended on behalf of certain of the heirs and "the administrator of the life tenant, who died on June 27, 1943, that the trust is void, — ■ in other words, that the purpose for which it was created having come to an end, it is executed and has ceased to exist as an active trust by virtue of the Statutes of Uses of Illinois and that this court should determine the persons to whom the money should be paid and the proportions thereof to be paid to each.

By his will, the testator contemplated that, upon the death of the life-tenant, the property should be sold by his executor and the proceeds distributed. But the record discloses that the estate was closed and the executor discharged many years ago. The condemnation of the property by the Government effectuated disposition of the real estate but it left the compensatory fund subject to the provisions of the will. These facts, I think, have an important bearing upon determination of the character of the trust.

Section 50, Chapter 22 of the Illinois Revised Statutes, provides that where lands are subject to future interests, whether arising by way of remainder, reversion or otherwise, and it appears that they are liable to waste or depreciation or that the sale and proper investment of the proceeds will inure to the advantage of the persons entitled thereto or that it is otherwise necessary for conservation, preservation or protection of the property or of any interest therein that they be sold or converted, the Circuit Court shall have power, pending the vesting of the future interests, to declare a trust, appoint a trustee, vest in him title to the property and authorize and direct sale of the property by the trustee and direct him to receive, hold and invest the proceeds thereof for the benefit of the persons entitled thereto or who may become entitled thereto. It further confers upon the court authority to construe wills to determine whether trusts are involved and to exercise all equitable power necessary to achieve the ends contemplated by testators and to administer estates in accord with such contemplation.

Section 3 of Chapter 30 of the Illinois Revised Statutes is, substantially, a re-enactment of that part of the Statute of Uses, 27 Hen. VIII, Chap. 10, 1535, which relates to conveyances to use. The act does not apply to active trusts but [513]*513only to those naked or base in character, where the fiduciary has no duty to perform. Restatement of the Law of Trusts, §§ 68, 69; 65 C.J. p. 227. In all such cases, transfer to the cestui que trust is automatic and no valid trust comes into existence, although express words of trust are used. Kellogg v. Hale, 108 Ill. 164. If the trust here is passive or naked, it follows that, despite its express terms created by the Lawrence Circuit Court, the use was executed and the legal title vested in the beneficiaries.

We must remember that at the time of the creation of the trust there was uncertainty as to the beneficiaries; that the executor had been discharged; that, in order to carry into effect the testator’s expressed intention, it was necessary that a court of equity take jurisdiction and appoint a trustee with authority to carry out the directions of the testator. This vested title in the trustee with power to execute conveyance of the property and to receive the proceeds and reinvest them until it could be determined to whom the proceeds should be paid in accord with the will. This, it seems to me, requires continuation of legal title in the trustee to enable him to perform his duties. Consequently the trust was not executed under the Statute of Uses embodied in the Statutes of Illinois. Potter v. Couch, 141 U.S. 296, 11 S.Ct. 1005, 35 L.Ed. 721. Thus it has been held in Illinois that a trust to hold property, convey it and distribute the proceeds is active, not executed by the statute. McFall v. Kirkpatrick, 236 Ill. 281, 86 N.E. 139; Mason v. Mason, 219 Ill. 609, 76 N.E. 692; Chicago Terminal Transfer R. Co. v. Winslow, 216 Ill. 166, 74 N.E.

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Related

Potter v. Couch
141 U.S. 296 (Supreme Court, 1891)
Silverman v. Kristufek
44 N.E. 430 (Illinois Supreme Court, 1896)
Kathman v. Sheehan
163 N.E. 692 (Illinois Supreme Court, 1928)
Meacham v. Steele
93 Ill. 135 (Illinois Supreme Court, 1879)
Kellogg v. Hale
108 Ill. 164 (Illinois Supreme Court, 1883)
Ure v. Ure
56 N.E. 1087 (Illinois Supreme Court, 1900)
Chicago Terminal Transfer Railroad v. Winslow
74 N.E. 815 (Illinois Supreme Court, 1905)
Mason v. Mason
76 N.E. 692 (Illinois Supreme Court, 1906)
McFall v. Kirkpatrick
86 N.E. 139 (Illinois Supreme Court, 1908)
Leary v. Kerber
99 N.E. 662 (Illinois Supreme Court, 1912)
Gardner v. Baxter
127 N.E. 717 (Illinois Supreme Court, 1920)

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Bluebook (online)
54 F. Supp. 511, 1944 U.S. Dist. LEXIS 2629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-3000-acres-of-land-more-or-less-in-lawrence-county-illinoised-1944.