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Caption: Board of Trustees Minutes - 1984 This is a reduced-resolution page image for fast online browsing.
![](https://uihistories.library.illinois.edu/REPOSITORYCACHE/175/84DdvF275Ug7GTTk5G7MUrE1vP3bQiJd01Sr6x4PM4RW4qj0s9561zohjMrUGT5WL4GdX2pKo8xRWli1LPzx8S57531wx6OnIxzAFEJAK5P_5639-465.jpg)
EXTRACTED TEXT FROM PAGE:
1984] UNIVERSITY OF ILLINOIS 457 elusive. The recommendations were individually discussed but acted upon at one time. (The record of board action appears at the end of each item.) Estate of Francoise A. Addington: Employment of Special Counsel (18) Francoise A. Addington, a resident of California, died on July 22, 1983, leaving an estate of approximately $1,000,000. In addition, by her will she exercised a power of appointment over a trust of Illinois real estate of a value of approximately $4,300,000. The Illinois trust terminates at the death of Hazel L. Phares, who is now approximately 77 years old. Mrs. Addington's will makes certain minor bequests and creates a residuary trust of the balance of her California estate. The will provides that her friend, Pat L. Hagan, may occupy her condominium in Glendale, California, during his lifetime. Mr. Hagan is approximately 76 years old. The income and principal of the California residuary trust may be used by the California trustee to provide for Mr. Hagan's reasonable care, support, and comfort, taking into consideration funds and resources which he has outside the trust and his standard of living at the time of Mrs. Addington's death. At Mr. Hagan's death, the California trust is to be distributed "to the University of Illinois for the use of its agricultural department for research grants in the agricultural field." Pursuant to the exercise of the power of appointment over the Illinois trust, the income from the Illinois farm land is to be paid to Pat L. Hagan until his death, or until such time as the Illinois trust terminates at the death of Hazel L. Phares. If Mr. Hagan dies prior to the termination of the Illinois trust, it is to be distributed to the University of Illinois for the use of its "agricultural department" for research grants in the agricultural field. If Mr. Hagan survives Hazel Phares, then at her death the Illinois trust is to be added to the principal of the residuary trust in California. The instrument creating the Illinois trust directs the Illinois trustee to pay estate or inheritance taxes assessed with respect to the property passing under its terms and similar, but not identical, language is contained in the California trust. As the Addington will is drawn, the remainder interest passing to the University of Illinois does not qualify for deduction as a charitable contribution under the Federal estate tax law. As a result, more than $2,000,000 in Federal estate taxes attributable to the Illinois real estate will be payable unless Mr. Hagan disclaims his interest under the exercise of the power of appointment in the Addington will. Preliminary discussions have been conducted with the Illinois trustee (the First National Bank of Peoria), the California executor and trustee (Security Pacific National Bank), and Mrs. Addington's attorney (who is also the attorney for the California exeeutor and trustee) concerning Mr. Hagan's willingness to file a disclaimer which would preserve the value of the property for the University. To assist in these discussions and pursuant to previous delegations by the Board of Trustees, on recommendation of the university counsel the California firm of Ball, Hunt, Hart, Brown and Baerwitz has been engaged as special counsel to protect the University's interest in this matter. The university counsel recommends that such engagement be ratified and confirmed in all respects. I concur. On motion of Mr. Madden, this recommendation was approved by the following vote: Aye, Mrs. Day, Dr. Donoghue, Mr. Forsyth, Mr. Hahn, Mr. Howard, Mr. Madden, Mrs. Shepherd, Mr. Stone; no, none; absent, Mr. Logan, Governor Thompson. (The student advisory vote was: Aye, Mr. Bolen, Mr. Milkint; no, none.)
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