Appeal from the Circuit Court of Cook County; the Hon. WAYNE
W. OLSON, Judge, presiding. Affirmed.
MR. PRESIDING JUSTICE BURMAN DELIVERED THE OPINION OF THE COURT.
This case arose in connection with a divorce granted to William and Lucille A. Reid on May 5, 1960. *fn1 The names of the Reid's four children and their ages at the time of the divorce are as follows: William C., Jr., age 18, Thomas, age 15, Barbara, age 13 and James, age 8. Merged in the decree of divorce was a property settlement agreement, the relevant parts of which provided (1) that the husband pay to the wife $1,000 per month for a period of ten years, the sum to be reduced by $160 per month for each child who is emancipated or attends college or graduate school after leaving high school or resides elsewhere than with his wife, and (2) that the husband pay the college or graduate school expenses of each child, regardless of age, up to a maximum of $2,000 per child per year. The agreement also contained the following provision which is the subject of the dispute in this case:
That the insurance presently held by the husband shall be retained and set up either by means of the present policies or by an insurance trust, to provide that in the event of the husband's death before all children are of age or completed college or graduate school, the income from said policies or trust shall be immediately available for use to pay for their support or expenses at college or graduate school; that said policies or insurance trust shall be set up so that the children are the irrevocable beneficiaries of the proceeds from said insurance; that the husband shall pay the premiums and charges thereon; that the husband shall retain the right to decide in what amounts the children shall share said insurance.
At the divorce hearing, the husband was questioned on direct examination about his understanding of this provision of the agreement as follows:
Q. You further understand, Mr. Reid, the insurance policies presently held by you shall be retained and set up either by means of the present policies or by an insurance trust to provide that in the event of your demise or death before all the children are of age or completed college or graduate school, that the income of said policies or trust shall be immediately available for the use of their support? Now you understand that?
Q. You further understand that the children shall be irrevocable beneficiaries of the proceeds of this insurance, but that you shall have the right to decide in what amounts they shall share in that proceed. Now you understand that?
On cross-examination, the husband testified as follows:
Q. The insurance you presently have you are keeping and you are paying the premiums and seeing that your children are the irrevocable beneficiaries?
Q. In the event you die before the ten year period is gone, it is set up either through the policies or trust so that there will be income coming in so the children can continue to live as they have and go to school, is that right?
In February 1964, the husband petitioned for leave to substitute a new policy of insurance for all but one of the insurance policies which he is holding under the provision of the agreement quoted above. This appeal ...