Harris Trust & Savings Bank v. Donovan

560 N.E.2d 1175, 203 Ill. App. 3d 259, 148 Ill. Dec. 578, 1990 Ill. App. LEXIS 1415
CourtAppellate Court of Illinois
DecidedSeptember 18, 1990
DocketNo. 1-89-0984
StatusPublished
Cited by2 cases

This text of 560 N.E.2d 1175 (Harris Trust & Savings Bank v. Donovan) 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
Harris Trust & Savings Bank v. Donovan, 560 N.E.2d 1175, 203 Ill. App. 3d 259, 148 Ill. Dec. 578, 1990 Ill. App. LEXIS 1415 (Ill. Ct. App. 1990).

Opinion

JUSTICE BILANDIC

delivered the opinion of the court:

Plaintiff, Harris Trust and Savings Bank, as trustee of the marital trust and the family trust under the Thomas J. Donovan trust dated July 25, 1982 (hereinafter Trustee), filed a complaint for declaratory judgment asking the court to declare that the family trust be divided into two separate trusts, one for the benefit of defendant John M. Donovan, and one for the benefit of defendant Patricia D. O’Rourke. Defendants John and Patricia filed an answer which agreed with the relief sought by the Trustee. Defendant Hallam Thomas Donovan filed an answer which disagreed with the Trustee and requested that the family trust be divided into three equal trusts for the benefit of himself and defendants John and Patricia. All of the pleadings are verified and had attached to them exhibits relevant to the disposition of the controversy between defendant Hallam and the Trustee.

The Trustee moved for judgment on the pleadings pursuant to section 2 — 615 of the Code of Civil Procedure (111. Rev. Stat. 1987, ch. 110, par. 2 — 615). After hearing arguments of counsel, the trial court entered an order on March 15, 1989, which made the following findings:

(1) that there was no ambiguity in the Thomas J. Donovan trust dated July 26, 1982;

(2) that settlor intended, after the death of his wife, that the family trust be divided into two trusts for the benefit of John and Patricia; and

(3) that the settlor did not intend that Thomas, Jr. (not a party here), or defendant Hallam be beneficiaries of the family trust.

The court then ordered that the Trustee’s motion for judgment on the pleadings be granted and that the family trust be divided into two trusts for the benefit of John and Patricia. Defendant Hallam Thomas Donovan filed a timely notice of appeal.

The verified pleadings and attached exhibits reveal the following pertinent facts. Thomas J. Donovan’s estate plan is based upon two testamentary instruments. The first is the trust dated July 26, 1982. The second is his will dated July 29, 1982 (three days later). Harris Trust was named as trustee of the trust and executor of the will. The estate plan instruments appear to have been drafted by the law firm of Sidley & Austin, who are the attorneys for the trustee and executor. Thomas J. Donovan died on August 24, 1982, which is less than 30 days after the execution of his trust and will.

Probate proceedings were instituted shortly after his death. The order declaring heirship determined that the heirs at law and next of kin of the decedent were his wife, Marie Donovan, and his children, John Donovan, Patricia O’Rourke and Thomas J. Donovan, Jr.

By the terms of the trust instrument, upon the settlor’s death, the trust estate was divided in a marital trust and a family trust. The settlor’s wife, Marie, was the sole beneficiary of the net income from both trusts during her lifetime. Marie was granted a general testamentary power of appointment over the marital trust. If Marie failed to exercise this power upon her death, the trust instrument caused any part of the marital trust remaining after payment of certain expenses to be added to the family trust.

The trust instrument directs the trustee to “divide the Family Trust into separate trusts of equal value, creating one trust for each child of mine other than Thomas J. Donovan, Jr. then living and one trust for the descendants then living, collectively, of each deceased child of mine other than Thomas J. Donovan, Jr. I intentionally make no provision for my son, Thomas J. Donovan, Jr., or his descendants under this paragraph.” The settlor defined the terms “children” and “descendants,” as used in the trust instrument, to “include only lawful blood children and descendants and legally adopted children and descendants.”

By the terms of his will the settlor bequeathed his personal effects to his wife, if she survived him, and if she did not survive him, “to my children other than Thomas J. Donovan, Jr. who are then living, to be divided between them in shares of substantially equal value as they agree ***. My only children now living are John M. Donovan, Patricia D. O’Rourke and Thomas J. Donovan, Jr.” After disposing of his personal effects, the settlor’s will then poured the residue of his estate into the Thomas J. Donovan trust.

Shortly after the settlor’s death, in a letter dated November 18, 1982, Hallam notified Harris Trust as trustee, also executor of the settlor’s estate, of his status as heir to the settlor’s estate. Hallam included a 1964 California judgment adjudging Thomas J. Donovan to be his father and ordering the settlor to pay child support until Hallam reached the age of 21 years. The record discloses that the settlor did pay monthly child support to Hallam’s mother and also paid Hallam’s medical and educational expenses.

Thereafter, Hallam retained counsel in Chicago who caused the original order declaring heirship to be vacated. An amended order declaring heirship was entered in the probate proceedings on February 24, 1983, which determined the decedent’s heirs at law and next of kin to be his wife, Marie Donovan, and his children, John Donovan, Patricia O’Rourke, Thomas J. Donovan, Jr., and Hallam Thomas Donovan.

Marie died on April 27, 1988, without having exercised the general power of testamentary appointment over the marital trust. The remaining assets of the marital trust were then added to the family trust.

It is undisputed by the parties to this action that the settlor’s son, Thomas J. Donovan, Jr., was clearly and unequivocally disinherited by his father. Thomas Jr. is not involved in this appeal.

The issue involved in this appeal is whether the trial court properly granted the trustee’s motion for judgment on the pleadings under the facts of this case.

I

The trustee moved for judgment on the pleadings pursuant to section 2 — 615 of the Code of Civil Procedure. (111. Rev. Stat. 1987, ch. 110, par. 2 — 615.) In arriving at its decision, in the case sub judice, the trial court may only consider the verified pleadings and the exhibits attached thereto and incorporated into the pleadings. (Panorama of Homes, Inc. v. Catholic Foreign Mission Society, Inc. (1980), 84 Ill. App. 3d 142, 145, 404 N.E.2d 1104.) The court must construe the pleadings most strongly against the moving party and uphold the trial court’s judgment only if there is no factual issue which, if determined against the moving party, would prevent entry of the judgment on behalf of the moving party. Seefeldt v. Millikin National Bank (1985), 137 Ill. App. 3d 841, 842-43, 485 N.E.2d 30.

The rules of will construction apply with equal force to the construction of a trust instrument. (Harris Trust & Savings Bank v. Beach (1987), 118 Ill. 2d 1, 3-4, 513 N.E.2d 833

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Bluebook (online)
560 N.E.2d 1175, 203 Ill. App. 3d 259, 148 Ill. Dec. 578, 1990 Ill. App. LEXIS 1415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-trust-savings-bank-v-donovan-illappct-1990.