In the Chesbrough v. Northern Trust Company case of 1919, the Supreme Court ruled on a dispute involving an inheritance tax. The decedent, Schreiber, had left his estate to his wife and children but also included provisions for charitable donations in his will. After paying Illinois' inheritance tax based on the entire value of the estate, including these charitable gifts, Schreiber's executor sought to recover part of this payment arguing that under state law such bequests were exempt from taxation. However, both lower courts held against him. The Supreme Court affirmed these decisions stating that while it was true that Illinois law did provide a tax exemption for property passing to certain institutions for religious or educational purposes among others; this provision could not apply here as there was no immediate transfer of ownership upon death due to conditions attached by Schreiber in his will regarding use and disposal of funds which meant charities didn't have absolute control over them immediately after death as required by statute.

The dissenting opinion in the Chesbrough v. Northern Trust Company case argued that the majority's decision was inconsistent with previous rulings and interpretations of the law. The dissent believed that a trust, once created, could not be altered or terminated by anyone other than its creator during their lifetime unless there were specific provisions allowing for such changes within the trust agreement itself. They contended that since Mr. Schreiber did not include any such provision in his will, his daughter should have no legal right to terminate or alter it after his death as she attempted to do so through her lawsuit against Northern Trust Company. Furthermore, they disagreed with the majority's interpretation of Illinois state law on trusts and estates arguing instead that it does not allow for a beneficiary to unilaterally change an irrevocable trust without court approval.