Durdle v. Durdle

585 N.E.2d 1171, 223 Ill. App. 3d 964, 166 Ill. Dec. 149, 1992 Ill. App. LEXIS 56
CourtAppellate Court of Illinois
DecidedJanuary 16, 1992
Docket4-91-0489
StatusPublished
Cited by1 cases

This text of 585 N.E.2d 1171 (Durdle v. Durdle) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Durdle v. Durdle, 585 N.E.2d 1171, 223 Ill. App. 3d 964, 166 Ill. Dec. 149, 1992 Ill. App. LEXIS 56 (Ill. Ct. App. 1992).

Opinion

JUSTICE LUND

delivered the opinion of the court:

A trust beneficiary, Karla Mae Bartels, filed a petition to convert the trust real estate to an asset generating greater income. The trial court dismissed the petition. (Ill. Rev. Stat. 1989, ch. 110, par. 2— 619.) The beneficiary now claims on appeal that (1) the trustee’s motion to dismiss should not have been granted; (2) the trust instrument does not preclude sale of the real estate; and (3) even if the trust did preclude sale of the real estate, the court has authority to order a sale.

The trust involved in this case was established by the will of Clarence G. Miller, who died on October 23, 1982. The will provides the trustee is to pay the trust’s income to Clarence’s brother, Lawrence, for the remainder of his life. Lawrence died prior to the closing of Clarence’s estate. Upon Lawrence’s death, the will directed the trustee:

“(1) To pay the net income of the trust at least annually in equal shares to Verla Hill and Karla Mae Bartels.
(2) At the death of Verla Hill or Karla Mae Bartels, the decedent’s share shall be paid to the decedent’s children. If either Verla Hill or Karla Mae Bartels dies without children surviving them, then that share shall be paid to the survivor of Verla Hill and Karla Mae Bartels.”

The will contains additional provisions for distribution of the trust income and real estate subsequent to the death of Hill and Bartels which do not concern us here.

The will further directs the trustee to employ William L. Durdle, the trustee’s son, to farm the real estate owned by the trust “on the customary crop share basis so long as he shall farm the said land in a husband-like manner.” The will also gives the trustee several other powers which will be further explained.

Since establishment of the trust, the beneficiaries have received approximately $7,500 each. Hill has objected to every annual trust accounting since its inception. This court heard the appeal of the first accounting; we remanded with instructions to correct only minor defects in the accounting, but affirmed the trial court’s acceptance of the accounting in all other respects. (Durdle v. Durdle (1986), 141 Ill. App. 3d 12, 489 N.E.2d 1142.) In 1989, this case was again before our court. At issue again was whether the trustee had mismanaged the trust property to an extent which would require his removal. (Durdle v. Durdle (1989), 187 Ill. App. 3d 1126 (unpublished order under Supreme Court Rule 23).) The issues were substantially similar to those of the first appeal. This court held that Hill’s claims were barred by the doctrine of collateral estoppel. Durdle, 187 Ill. App. 3d 1126 (slip Rule 23 order at 15).

Beneficiary Bartels claims that the trustee’s motion to dismiss her petition to convert the real estate should not have been granted. We disagree.

The portion of the petition to convert assets of testamentary trust relevant to this opinion are as follows:

“5. That Delmar W. Durdle was named as trustee of said Testamentary Trust and is presently acting as said Trustee.
6. That since the establishment of said Testamentary Trust in 1985, the two sole beneficiaries have received from 1985 through 1989, approximately $7,500.00 each in distributions from said Trust.
7. That the annual distributions to each beneficiary from said Trust have averaged approximately $1,250.00.
8. That the fees paid to Don Boggs, attorney for the Estate of Clarence G. Miller, Deceased, as well as fees paid to him for acting as attorney for the Trustee, have now exceeded the sum of $12,903.16.
9. That fees paid to Delmar W. Durdle as Executor of said estate and as trustee for said Trust have now exceeded the sum of $7,801.00.
10. That there are still outstanding amounts due said attorney for said Trust and said Trustee with regard to the filing of Current Reports herein and with regard to litigation involving said Trust.
11. That objections to each Current Account filed herein have been filed by beneficiary Verla Hill.
12. That objections have also been filed herein by beneficiary Karla Mae Bartels.
13. That there have been numerous and lengthy Court proceedings with regard to said objections.
14. That beneficiary Verla Hill has taken her objections to the Appellate Court and there have been numerous and lengthy proceedings therein.
15. That there will continue to be numerous and lengthy legal proceedings herein resulting in further attorneys fees and Trustee’s fees to be paid from the Trust.
16. That the objections to the accountings herein primarily relate to the Trustee’s manner of renting and farming Trust farm real estate, and lack of farm management abilities to provide reasonable and adequate trust income.
17. That the primary asset of said Testamentary Trust is approximately 80 acres of farm real estate, which asset is not sufficient to generate a reasonable amount of annual income so as to justify continuation of the Trust in its present form.
18. That the intended purpose of the Trust, as is evident from its terms, is the production of income for the beneficiaries of said Trust.
19. That as is evident from the proceedings herein, the only people benefiting from said Testamentary Trust are the attorney[s] for the Trust and the Trustee.
20. That the Trustee has a vested interest in the continuation of the Trust in its present form in that his son farms said real estate.
21. That nowhere in the terms and provisions of said Trust does it prohibit or prevent the sale of said farm real estate nor is there any statement therein whereby the testator requires that the real estate remain unsold during the term of said Trust.
22. That beneficiary Bartels’ share of income proceeds from the Trust are annually being reduced by the ongoing legal expenses related to the Trust.
23. That setting aside said expense, the Trust fails to produce reasonable and sufficient income to justify its continuation in its present form.”

The trial court’s ruling provided:

“MEMORANDUM OF OPINION
For purposes of this motion the Court assumes (without deciding) that petitioner Bartels can prove each factual allegation (excluding legal conclusions) of the October 31 Petition to Convert Assets of the trust by a preponderance of the evidence.

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Cite This Page — Counsel Stack

Bluebook (online)
585 N.E.2d 1171, 223 Ill. App. 3d 964, 166 Ill. Dec. 149, 1992 Ill. App. LEXIS 56, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durdle-v-durdle-illappct-1992.