Background
In December 1984, Rose and Richard Flock established two land trusts holding real estate in Pike County, with attorney John D. Coonrod as trustee. The trusts named Rose and Richard as beneficiaries and provided for termination “after the death of the later of the beneficiaries.” Richard died in February 1988, and Rose died in December 2024.
Following Rose’s death, Richard C. Flock sought a judicial declaration that the trusts were void, arguing they failed to comply with Illinois law because they did not contain a provision requiring termination after a definite number of years. The circuit court rejected this argument and declared the trusts valid. Richard appealed.
The Court’s Holding
The Illinois Appellate Court affirmed, holding that a land trust does not need to contain a provision requiring termination within a specified number of years to be valid. The court applied the rule against perpetuities, which applies to land trusts created before 1998, and found that the trusts satisfied this rule through their termination provision tied to the death of the beneficiaries.
The court distinguished Robinson v. North Pond Hunting Club, which Richard relied upon. In Robinson, a land trust was invalidated because it contained no termination provision whatsoever. By contrast, the Flock trusts included a clear termination mechanism—upon the death of the surviving beneficiary—which was sufficient to comply with perpetuities law. The court also rejected Richard’s argument that a model form in Kenoe on Land Trusts, which specified a 20-year term, demonstrated that such a fixed period was necessary for validity.
Key Takeaways
- Illinois land trusts created before 1998 do not require an explicit “termination after X years” clause to satisfy the rule against perpetuities
- A termination provision tied to life events—such as the death of the trust beneficiaries—is sufficient for validity
- The rule against perpetuities requires an interest to vest within 21 years and nine months after some life in being at the trust’s creation; termination upon a beneficiary’s death satisfies this requirement
Why It Matters
This decision clarifies Illinois law for trust practitioners and property owners, permitting greater flexibility in land trust drafting. Rather than requiring trusts to specify a fixed termination date, Illinois law allows termination provisions pegged to natural life events, provided the trusts comply with the rule against perpetuities. This reduces administrative burden and allows settlors to structure trusts around predictable life milestones.
For beneficiaries of existing land trusts without explicit termination dates, the decision confirms their trust interests remain valid despite the absence of a fixed term, provided the trusts contain some termination mechanism and were created before 1998.