Estate of Dawson v. Harris Trust & Savings Bank

522 N.E.2d 770, 168 Ill. App. 3d 391, 119 Ill. Dec. 108, 1988 Ill. App. LEXIS 376
CourtAppellate Court of Illinois
DecidedMarch 28, 1988
Docket86-3000
StatusPublished
Cited by5 cases

This text of 522 N.E.2d 770 (Estate of Dawson v. Harris Trust & Savings Bank) 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
Estate of Dawson v. Harris Trust & Savings Bank, 522 N.E.2d 770, 168 Ill. App. 3d 391, 119 Ill. Dec. 108, 1988 Ill. App. LEXIS 376 (Ill. Ct. App. 1988).

Opinion

JUSTICE BUCKLEY

delivered the opinion of the court:

This dispute presents the question whether a child born and adopted after a trust is executed is intended to be included within the term “child” or “heir-at-law” as used within the language of a trust. The trust in question was executed on January 3, 1928, by Walter H. Eckert (Walter), an attorney. The trust transferred assets to Walter’s wife, Georgia, and himself as trustees. Walter and Georgia had one child, Jane, who was about 17 years of age at the time the trust was executed. No other child was born to or adopted by Walter and Georgia.

The trust provided as follows:

“I. During the lifetime of the Depositor, WALTER H. ECK-ERT, the Trustees shall pay over all of the net income of said trust estate to him for use and/or distribution as he may see fit and he shall have full power and authority to at all times collect such income, and if necessary, endorse the name or names of the remaining trustee on all dividend or other checks or orders evidencing the income from said trust estate or on checks or orders necessary for the distribution of such income.

II. In the event that the said GEORGIA J. ECKERT [Walter’s wife] shall survive the Depositor then the income from said trust estate shall on the death of the Depositor be paid to her for and during her natural life, such payments to be made monthly, quarterly, yearly or semi-annually as said Trustees may see fit.

III. Upon the death of the said GEORGIA J. ECKERT, or in the event of her death before the decease of the Depositor, then upon the death of the Depositor, the income from said trust estate shall be paid to JANE ECKERT, (the daughter of the said Depositor and the said GEORGIA J. ECKERT) for and during her natural life. Such income to be paid to her either monthly, quarterly or semi-annually as said Trustees may elect and as shall be for the best interests of this trust (the wish but not the direction of the Depositor being that such income be paid monthly.)

IV. Upon the death of JANE ECKERT, the principal from said trust estate shall be paid to her child or children, share and share alike, provided that in the event of the death of any surviving, then such child or children shall receive the share which the child of JANE ECKERT would have received if living. In the event of the death of said JANE ECKERT leaving her no child or children surviving and no child or children of such child or children, then said trust estate shall be paid to the heirs-at-law of the Depositor unless said JANE ECKERT shall leave a husband surviving, who shall be living with her at the date of her decease, in which event one-half of said trust estate shall be paid to such husband and the remaining one-half shall be paid to the heirs-at-law of the Depositor.” (Emphasis added.)

Walter died September 5, 1944. He was survived by Georgia and Jane.

Jane had been married once to E Alan Dawson. Dawson predeceased Jane. Jane did not give birth to any children. However, she did adopt a child, John Dawson (John), on February 21,1951.

Georgia died June 9, 1976, survived by Jane and John. The bulk of Georgia’s estate was distributed to Jane.

On November 29, 1983, Jane died, survived by John as her only heir. Jane’s will provided in relevant part as follows:

“THIRD: My father, Walter H. Eckert, entered into an agreement on January 3, 1928 creating a trust which, at his death in September, 1944, comprised substantially all of his estate. Said agreement provided for benefits to him during his lifetime and to his wife, my mother who survived him ***.

* * *

It is my belief that my adopted son, JOHN A. DAWSON, will upon my death inherit that trust estate. It is my further belief that my father would have so intended and that, had he known of my inability to bear children, he would have so provided for my adopted children, as did my mother, who died after the adoption of John. So believing, I give the remainder of my estate to STUART BLAIR BASQUIN ***, Provided, however, that if it is determined by a court that said son is not a ‘child’ of mine, or an ‘heir’ of my father, I give said remainder of my estate to CHARLES D. KIMBELL *** [as trustee for John A. Dawson].”

The executor of Jane’s will sued for a construction of the will and Walter’s trust and for declaratory relief to have Harris Bank & Trust, the trustee of Walter’s estate, distribute Walter’s estate to John. The court construed the will and trust and denied the executor declaratory relief. It ruled that since John was bom and adopted after Walter’s death, he was not a “child” of Jane within the meaning of the trust. It further held that Walter intended to exclude adopted children from the class of “heirs-at-law” as provided in the trust. It distributed Jane’s estate to Charles D. Kimbell as trustee for John and held that Walter’s estate was distributable to the descendants of his grandparents. Some of these descendants were not determined at the time of the court’s judgment. John and the executor of Jane’s will both appeal this judgment.

The primary concern in construing a trust is to ascertain the intent of the donor at the time the trust was executed. (First National Bank of Chicago v. Canton Council of Campfire Girls, Inc. (1981), 85 Ill. 2d 507, 513, 426 N.E.2d 1198, 1201.) In determining intent, the court must consider the entire document, giving words their plain and ordinary meaning. (Warren Boynton State Bank v. Wallbaum (1986), 143 Ill. App. 3d 628, 632-33, 493 N.E.2d 21, 25.) Moreover, the disposition of a trust must be made according to the law applicable when the trust was created. Belfield v. Findlay (1945), 389 Ill. 526, 529, 60 N.E.2d 403, 406.

We begin our analysis by examining the language of the trust at issue to determine Walter’s intent. The trust provides that upon Jane’s death the trust estate “shall be paid to her child or children, share and share alike.” The term “child or children,” we believe, designates a class which would include an adopted child of Jane. The language used does not expressly or implicitly restrict distribution to blood descendants of Jane. By using the language “child or children” Walter intended to include John as an adopted child of Jane.

The instant case is in sharp contrast to Smith v. Thomas (1925), 317 Ill. 150, 147 N.E. 788. In Smith, the testator stated in his will that his desire was “to create and preserve for my grandchildren and their heirs an estate having a steady permanent income.” (317 Ill. at 158, 147 N.E. at 791.) In light of this language, the court held that an adopted son of the testator’s son was not the testator’s grandchild and therefore he could not inherit under the will.

In the instant case, John’s right to inherit is not dependent on his status as a grandchild of Walter. Instead, it depends on his status as a child of Jane. Unlike the adopted son in Smith, John fits squarely within the class entitled to inherit.

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Cite This Page — Counsel Stack

Bluebook (online)
522 N.E.2d 770, 168 Ill. App. 3d 391, 119 Ill. Dec. 108, 1988 Ill. App. LEXIS 376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-dawson-v-harris-trust-savings-bank-illappct-1988.