Farkas v. Williams
Supreme Court of Illinois
125 N.E.2d 600 (1955)
Albert B. Farkas died without a will but certificates of stock in Investors Mutual, Inc. (IMI) were found in a safe deposit box after his death. Additionally, IMI held four declarations of trust executed by Farkas and submitted with his applications to purchase the stock. The declarations of trust were identical except for the dates and provided that the stock certificates were to be issued in Farkas’ name, “as trustee for Richard J. Williams” (defendant), who was an employee in Farkas’ veterinary practice for many years. The trust declarations also provided that Farkas, as settlor, was to receive all of the cash dividends during his lifetime and he had the right to change the beneficiary or revoke the trust. As sole trustee, he had the power to “vote, sell, redeem, exchange or otherwise deal in or with the stock” and the right as settlor, to retain the proceeds of any sale or transfer. The declarations further provided that Williams, the beneficiary of the trust, would receive the assets of the trust upon Farkas’ death but the trust would be automatically revoked if Williams predeceased Farkas. Additionally, the declarations provided that any change or revocation of the trusts was not effective as to the IMI stock unless and until written notice was delivered to IMI. Farkas’ heirs-at-law (plaintiffs), acting as administrators of his intestate estate, asked the court to declare the declarations of trust testamentary asserting that Farkas retained complete control over the trust during his lifetime. They further asserted that the trusts were invalid because they were not executed with the required formalities of a will, making the shares of IMI stock part of the intestate estate. The circuit court held that the trust declarations were testamentary and awarded the IMI stock to Farkas’ heirs-at-law because the trusts were not executed with the formalities required for valid execution of a will. The appellate court affirmed and Williams appealed to the Supreme Court of Illinois.
Rule of Law
Holding and Reasoning (Hershey, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 166,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 13,800 briefs, keyed to 187 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.