Capocy's Estate, In re
Decision Date | 14 December 1981 |
Docket Number | No. 80-2890,80-2890 |
Citation | 430 N.E.2d 1131,102 Ill.App.3d 609 |
Parties | , 58 Ill.Dec. 880 In re the ESTATE OF Charles CAPOCY, Deceased. Appeal of Heirs of Josephine PIPER, Deceased. |
Court | United States Appellate Court of Illinois |
Paul V. Kaulas, Chicago (Rory Cassidy, Chicago, of counsel), for appellant Heirs of Josephine Piper, deceased.
Jaros, Tittle & O'Toole, Chicago (Thomas A. Rosiello and Joseph J. Jaros, Jr., Chicago, of counsel), for appellant Talman Home Federal Savings and Loan Association of Illinois.
Daniel A. Riley, Riley, Riley & Riley, Hickory Hills, for appellee Sam Izzi, Independent Administrator of the Estate of Charles Capocy, deceased.
This appeal involves disposition of the assets of a savings account trust executed by Charles Capocy (settlor) for the benefit of his niece, Josephine Piper, and deposited at Talman Federal Savings and Loan Association of Illinois (Talman). Upon motion of the independent administrator of the settlor's estate, the trial court directed Talman to release the proceeds of the account to the administrator for distribution to the Capocy heirs. Talman and the heirs of Josephine Piper appeal.
The savings account in question was opened on October 5, 1976. The account was in the name of the settlor as trustee for the benefit of Josephine Piper (beneficiary). Concurrent with the opening of the account, settlor executed a form trust agreement. The settlor made several deposits and withdrawals but never revoked nor modified the trust agreement or the savings account. The front of the trust agreement identified the settlor. The reverse side, also signed by the settlor, provided:
On November 14, 1979, the beneficiary died leaving five heirs. Approximately four and one-half months later, on March 26, 1980, the settlor died. The question before this court is whether the proceeds of this account become part of the estate of the settlor, or that of the beneficiary.
Initially, the administrator of the settlor's estate suggests the savings account trust is a "Totten" trust. In Re Totten (1904), 179 N.Y. 112, 125, 71 N.E. 748, first recognized the type of property disposition now referred to as a "Totten trust."
Because generally the beneficial interest in a Totten trust does not vest until the death of the settlor, the general rule developed in other jurisdictions (the issue has apparently not yet arisen in Illinois) that if the beneficiary predeceases the settlor, the trust fails and the corpus of the trust reverts to the estate of the settlor. See e.g. ...
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