Repository: UIHistories Project: Board of Trustees Minutes - 1974 Version B [PAGE 177]

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1973]

UNIVERSITY OF ILLINOIS

169

will leaves a collection of precious stones to the University, makes certain other minor bequests, and provides that during the lifetimes of the decedent's wife and son each is to receive $6,000 annually from the income of the trust of his residuary estate. The trust is to continue in perpetuity and income not applied to these life estates is to be paid equally to the California Institute of Technology, the University of Illinois, the University of Nebraska, the University of Southern California, and the Shriners' Hospital for Crippled Children. For over six years various items of litigation have been pending. The principal matter being litigated is the question of whether the decendent possessed powers of appointment by virtue of the wills of his mother and his grandfather, and if so, whether such powers had been effectively exercised by the decedent's will. At its November 10, 1966, meeting the Board of _ Trustees authorized the University's appearance in the will construction proceedings which have recently resulted in a trial court decision in favor of the contentions of the charities. The matter is now on appeal to the Appellate Court of Illinois. A will construction suit is also pending in the State of Nebraska. At various times there have been negotiations for the settlement of all contested claims, and recently the attorneys for each of the interested parties have agreed to recommend to their principals the following settlement arrangements, which are conditioned upon the courts in Illinois, Nebraska, and Arizona approving the immediate termination of the trust: (a) The commuted values of successive life estates, created by the decedent's mother's will for two individuals in one parcel of real estate, is to be paid; (b) A building in Lacon, Illinois, which is used by an individual as a law office as provided in the decedent's will is to be conveyed to that individual; (c) Each of the decedent's wife and son is to be paid $15,000 in complete satisfaction of any claim for arrearages in trust income payments since the decedent's death; (d) The balance of the net estate (including presently accumulated income and income to be produced during the settlement period) would be distributed 25 per cent to the son, 15 per cent to the widow, and the balance of 60 per cent among the five charities; and (e) All court costs, expenses, and attorneys' fees of each recipient are to be borne and paid by the recipient out of the respective shares of the settlement. The arrangement contemplates that all assets would be liquidated as expeditiously as possible, and that the estate would pay all debts, claims, administration and liquidation expenses, fees of the executors and trustee and their attorneys, as well as the guardian ad litem fees. Each party's ultimate share of the settlement would be charged with any state inheritance taxes, federal_ estate taxes, and any penalties and interest thereon attributable on a pro rata basis to such party's share. Fifty thousand dollars of each of the son's and the widow's^ share would be paid immediately and would be recognized by all parties as being applicable to the widow's and son's claim for attorneys' fees. After making the $50,000 and the $15,000 payments to the wife and son referred to above, $30,000 would be paid immediately to each of the charities from its share. Much of the estate consists of farm lands in Illinois and Nebraska of an estimated^value in excess of $1,000,000, and it is anticipated that a considerable period of time will elapse before all the property can be liquidated. In view of the costly and protracted litigation which has already occurred and the prospects of the same continuing, special counsel for the University has recommended, and the University Counsel concurs, that settlement of all matters involving the estate be approved on substantially the terms outlined above, and that they be authorized to take such actions as may be necessary, including the execution of appropriate documents, to accomplish the same. I concur. On motion of Mr. Howard, this recommendation was approved.

AIR CONDITIONING FOR ADMINISTRATIVE OFFICE BUILDING. MEDICAL CENTER

(17) The President of the University, with the concurrence of appropriate administrative officers, recommends award of a contract in the amount of $13,200 to Admiral Heating and Ventilating, Inc., Hillside, the low bidder, for installation