Stewart v. Merchants National Bank Of Aurora

278 N.E.2d 10 (1972)

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Nature of the Case

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Facts

P created a special ten-year spendthrift trust. The primary purposes of the trust were twofold: to provide for the rehabilitation of P from personal injuries suffered by him, and for regular payment of mortgage indebtedness on a new home in substitution for the home he owned at the time the trust was executed. P got the money for the trust from a settlement having been in an automobile accident. P suffered serious damage to one eye and other injuries. The attorney who represented P in the civil suit suggested a trust. D's attorney designated himself as the settlor and P as the beneficiary. The trust stated that upon P’s death if there be any principal or accumulated income remaining in the Trust Estate, the Trustee shall pay P's funeral expenses, the claims against the estate and the administration expenses of his estate, the taxes due by reason of his death, and distribute the remainder as the Last Will and Testament of the beneficiary may provide, or to the beneficiary's heirs-at-law in equal shares if beneficiary leaves no valid will. After three years P wanted to terminate the trust. P petitioned the court and it held that P’s e heirs-at-law had to give their consent to revoke the trust, and since such heirs would include minors and possible unborn heirs, their consent was impossible. P appealed.