Fischer v. LaFave

544 N.E.2d 55, 188 Ill. App. 3d 16, 135 Ill. Dec. 698, 1989 Ill. App. LEXIS 1296
Appellate Court of Illinois·Decided August 30, 1989·No. 2-88-0679·Published·Cited by 9 cases

Opinion

JUSTICE LINDBERG

delivered the opinion of the court:

Petitioners are successor cotrustees of four trusts created by the late Peter Schuttler (Peter) and his wife, the late Martha Braun Schuttler (Martha), who were each the settlor of separate testamentary and inter vivos trusts. Respondents-appellees are all beneficiaries or potential beneficiaries of the trusts. Petitioners brought this action seeking instructions regarding whether respondent-appellant Scott G. Schuttler (Scott) is entitled to participate in the distribution of the income and the principal of the trusts.

The trial court entered an uncontested order that Scott is entitled to participate in the distribution of the income and the principal of Martha’s testamentary trust. As of the date of the filing of the notice , of appeal, it does not appear that the court had disposed of the ques- I tion with regard to Martha’s inter vivos trust, so that claim may still be pending in the circuit court. I

The trial court entered the three-page order which is the subject of this appeal on June 20, 1988. The court ordered that Scott and anyone claiming through him “be excluded from participation in the distribution of income and the principal arising out of” Peter’s testamentary and inter vivos trusts. On that date the trial court also ordered:

“(1) said three page order entered this date is a final order;
(2) there is no just reason for delaying enforcement or appeal.”

The case at bar is Scott’s appeal from the final judgment regarding Peter’s trusts. 107 Ill. 2d R. 304(a).

Peter executed a will dated December 21, 1939, and a codicil dated January 28, 1941. The provisions of the will establishing the testamentary trust included:

“(d) Said trustees shall divide the trust estate into three equal shares or portions ***. Said portions of the trust estate shall be dealt with and disposed of as follows:
* * *
(2) Said trustees shall expend and disburse the net income from the second portion of my trust estate *** for the benefit of my son, Peter Schuttler, Jr., for and during the term of his natural life. ***
From and after the death of my said son *** the net income from the second portion of my trust estate shall be paid to my said grand-children, PETER SCHUTTLER V., i JOAN SCHUTTLER, and BALLARD SCHUTTLER, and to 1 their lawful issue them surviving ***. j
(3) *** From and after the time when the youngest of my said grand-children living shall have attained the age of twenty-five years, the net income from the third portion of my trust estate shall be paid to my said grand-children PETER SCHUTTLER V., JOAN SCHUTTLER and BALLARD SCHUTTLER, and to their lawful issue them surviving ***.
(f) The trust hereby created shall terminate twenty (20) years after the death of the survivor of my wife, Martha Braun Schuttler, my son, Peter Schuttler, Jr., and my grand-children Peter Schuttler V., Joan Schuttler, and Ballard Schuttler; and the trustees shall thereupon transfer, pay over, deliver and convey said trust estate together with all accumulations and undistributed income to the lawful issue of my grand-children, Peter Schuttler V., Joan Schuttler and Ballard Schuttler ***.”

Peter executed a trust Indenture creating an inter vivos trust on December 26, 1940. Among the terms of this inter vivos trust were:

“3. (a) From and after the death of the said son of Settlor the net income from said first share of said trust estate shall be paid to the said grandchildren of the Settlor, Peter Schuttler V, Joan Schuttler and Ballard Schuttler, and to their lawful issue them surviving ***.
(b) *** From and after the time when the youngest of said grandchildren living shall have attained the age of twenty-five years the net income from the said second share of said trust estate shall be paid to said grandchildren, Peter Schuttler V, Joan Schuttler and Ballard Schuttler, and to their lawful issue them surviving ***.
* * *
5. The trust hereby created shall terminate twenty years after the death of the survivor of said Martha B. Schuttler, said Peter Schuttler, Jr. and said Peter Schuttler V, Joan Schuttler and Ballard Schuttler, and the Trustees shall thereupon transfer, pay over, deliver and convey said trust estate, together with all accumulations and undistributed income, to the lawful issue of said grandchildren of the Settlor, Peter Schuttler V, Joan Schuttler and Ballard Schuttler *** and in default of such issue to the heirs-at-law of the Settlor, except the Settlor, as determined by the law of Illinois in effect at the date of such distribution.”

Peter died on May 12, 1941, and Martha died on April 25, 1963. In 1976, when Scott G. Schuttler was 18 years old, Ballard Schuttler (Ballard) adopted him. Ballard died on August 20,1986.

The question in the trial court was, and now in this court is, whether Scott as the adopted son of Ballard is the “lawful issue” of Ballard, as that phrase is used in Peter’s trusts. If so, Scott is entitled to participate in the distribution of the income and the principal of those trusts along with the other beneficiaries. Otherwise, he is not entitled to participate in the distribution of the income and the principal of those trusts. The trial court found that Scott was not the “lawful issue” of Ballard, as that phrase is used in Peter’s trusts, and therefore is “excluded from participation in the distribution of income and the principal arising out of” Peter’s trusts. We affirm.

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Fischer v. LaFave, 544 N.E.2d 55, 188 Ill. App. 3d 16, 135 Ill. Dec. 698, 1989 Ill. App. LEXIS 1296 (Ill. Ct. App. 1989).

544 N.E.2d 55 (Fischer v. LaFave) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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