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Albrecht v. Brais

Citations: 754 N.E.2d 396; 324 Ill. App. 3d 188; 257 Ill. Dec. 738; 2001 Ill. App. LEXIS 602Docket: 3 — 00—0906

Court: Appellate Court of Illinois; July 27, 2001; Illinois; State Appellate Court

Narrative Opinion Summary

The case involves a dispute over the inclusion of farmland in the estate of Harry C. Emhouser. Adrienne Albrecht, as special administrator, filed a complaint to include the farmland in the estate, opposing Marlo Jean Popp Brais's initial probate filing that excluded it. The primary legal issue centered on whether an escrow agreement and quit claim deed executed by Harry and Rose Emhouser in 1987 constituted a valid trust, and whether it was revoked by Harry's 1990 will, which bequeathed the farmland to two churches. The trial court ruled the farmland was part of the estate, prompting Brais's appeal. On appeal, the court examined the requirements for creating a trust and the validity of the escrow agreement. It determined that the agreement did not create an irrevocable trust, as it was revocable during the Emhousers' lifetime. The court also found the deed delivery to Brais invalid under Illinois law, as it lacked the grantors' intent to relinquish control. Thus, the farmland remained part of Harry's estate, supporting the trial court's decision, which was affirmed on appeal, ensuring the property passed according to Harry's will.

Legal Issues Addressed

Delivery of Deeds in Escrow

Application: The court determined that the delivery of the deed to an escrow agent with revocable conditions does not constitute valid delivery under Illinois law.

Reasoning: In this instance, the Emhousers could revoke the escrow agreement before death, indicating the deed was not properly delivered, thus failing to convey the property to Brais.

Revocation of Trusts and Wills

Application: The court found that Harry's will effectively revoked any prior trust created by the escrow agreement, maintaining the farmland as part of the estate.

Reasoning: The court found that the farmland remained an asset of the estate because Harry's will effectively revoked any prior trust created by the escrow agreement, despite the deed being delivered to Brais posthumously.

Trust Creation Requirements

Application: The court assessed that the escrow agreement lacked necessary elements to constitute a trust, including specific language indicating intent to create a trust.

Reasoning: A trust requires specific elements, including grantor, trustee, subject matter, beneficiaries, and terms of performance. Importantly, no specific language is necessary to create a trust; a court assumes intention based on the instrument's language.

Validity of Escrow Agreements

Application: The court evaluated whether the escrow agreement constituted a valid trust and determined that it did not, as the deed remained revocable during the Emhousers' lifetime.

Reasoning: The agreement under scrutiny did not allow for revocation by will; it could only be revoked while the Emhousers were alive.