Ruby v. Ruby, 2012 IL App (1st) 103210

Plaintiffs/Appellants sought declaratory relief and a mandatory injunction regarding gifts under Irwin Ruby's trust; defendant Bernice Ruby was the trustee and beneficiary of a residuary estate.
Irwin transferred assets from a joint tenancy account 1159 into a new trust account 5122 in 2004, and deed to the condominium was deeded into the trust; Irwin intended the 1159 contents to go to plaintiffs.
Upon Irwin's death in 2006, assets remained in trust 5122; distributions under article fourth were made totaling $255,000 to plaintiffs and charities, with later substantial trustee withdrawals.
Plaintiffs argued the gift to them had not adeemed because assets remained available for distribution and Irwin intended the gifts to plaintiffs even after account changes.
The trial court granted partial summary judgment for the trustee on ademption but denied enforceability of the in terrorem clause; both sides sought appellate review.
The appellate court affirmed in part and reversed in part, remanding for a ruling on the appropriate gift and on the in terrorem clause's applicability.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the gift adeems when assets are transferred to a new trust account	Ruby argues the gift remained available and intended for plaintiffs despite the account change.	Ruby contends the transfer closed the original account, showing intent to adeem the gift.	Ademption reversed; gift to plaintiffs preserved.
Whether the in terrorem clause is enforceable against plaintiffs	Plaintiffs contend the clause is inapplicable and not enforceable against their challenge to the trust.	Defendant argues the clause forfeits benefits if a contest occurs.	In terrorem clause unenforceable to the extent it is inapplicable; clause not controlling here.
Whether the court has jurisdiction to review the joint tenancy/ownership issue	Plaintiffs seek review of trustee's distributions from the joint tenancy account.	Defendant asserts lack of appellate jurisdiction over the cross-motions on summary judgment.	Lack of jurisdiction to review January 26, 2010 cross-motions; remand controlled by Rule 304(a) concerns.

Brady v. Paine, 391 Ill. 596 (Ill. 1945) (ademption defined in testamentary context)
Bollman v. Pehlman, 352 Ill. App. 3d 1203 (Ill. App. 4th Dist. 2004) (ademption not extended to certain trusts)
Rosen, 2011 IL App (1st) 093533 (Ill. App. 1st Dist. 2011) (trust interpretation and extrinsic evidence when ambiguous)
Harris Trust & Savings Bank v. Donovan, 145 Ill. 2d 166 (Ill. 1991) (avoidance of surplusage; interpret to give effect)
In re Estate of Wojtalewicz, 93 Ill. App. 3d 1061 (Ill. App. 3d 1981) (forfeiture/strict view of contest provisions)
Department of Mental Health & Developmental Disabilities v. Phillips, 114 Ill. 2d 85 (Ill. 1986) (consider surrounding circumstances in trust interpretation)