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09/29/87 Eugenia Jones Oldweiler Et v. Peoples Bank of

September 29, 1987

EUGENIA JONES OLDWEILER ET AL., PLAINTIFFS-APPELLEES

v.

PEOPLES BANK OF BLOOMINGTON, TRUSTEE, ET AL., DEFENDANTS (PRINCETON UNIVERSITY, DEFENDANT-APPELLANT). --

EUGENIA JONES OLDWEILER ET AL., PLAINTIFFS-APPELLEES

v.

PEOPLES BANK OF BLOOMINGTON, TRUSTEE, DEFENDANT



APPELLATE COURT OF ILLINOIS, FOURTH DISTRICT

(Brokaw Hospital, n/k/a/

BroMenn HealthCare, et

al., Defendants-Appellants; Princeton University, Defendant)

Nos. 4-87-0090, 4-87-0094 cons.

514 N.E.2d 541, 161 Ill. App. 3d 317, 112 Ill. Dec. 878

Appeal from the Circuit Court of Macon County; the Hon. James A. Hendrian, Judge, presiding. 1987.IL.1456

APPELLATE Judges:

JUSTICE McCULLOUGH delivered the opinion of the court. SPITZ, P.J., and GREEN, J., concur.

DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE MCCULLOUGH

The plaintiffs filed suit in the circuit court of Macon County, Illinois, seeking distribution of real estate pursuant to the terms of an inter vivos trust agreement. The defendant trustee, the Peoples Bank of Bloomington, filed a counterpetition for construction of the trust instrument by the court. Following a hearing, the court ordered the trustee to transfer the real estate to the plaintiffs under the terms of the trust.

The charitable defendants, Baby Fold, Brokaw Hospital, Lake Forest Academy, and Princeton University, appeal the order of the circuit court. The cases have been consolidated for review. The defendants maintain that the court erred in ordering conveyance of the real estate pursuant to a "partial termination" provision of the trust instrument. We affirm the order of the circuit court.

In 1945, Ralph DeMange executed a trust agreement which was subsequently amended in 1947, 1954, and 1959. Under the terms of the trust (paragraph 9-B, Distribution of Income), the donor was to receive income for life. Upon the death of the donor, his daughter, Mary DeMange Kennedy, was to receive the income for life. The trust then provided for distribution of income, per stirpes, to the surviving descendants of Kennedy. In default of any of the above-named income beneficiaries, the donor's aunt, Julia F. Hodge, and donor's cousin, Mary Bell, were to receive the trust income, with the survivor to receive all income for life.

Paragraph 9-C provided for "Partial Termination of the Trust," specifically with respect to a 200-acre farm, termed the "Forsythe Farm," located in Macon County. Partial termination occurred at any time during the existence of the trust if the donor was deceased and Mary D. Kennedy was deceased with no living descendants. Upon partial termination, the Forsythe Farm ceased to be a part of the trust estate.

Under paragraph 9-C, the Forsythe Farm was to be distributed per stirpes, one-half to the descendants of Marian Ewing Winchester and one-half to the descendants of Eugenia Ewing Johns, sisters of the donor's wife, Emma Ewing DeMange. In default of these distributees, the Forsythe Farm was to be distributed per ...


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