In Re Estate of Kieras

521 N.E.2d 263, 167 Ill. App. 3d 275, 118 Ill. Dec. 195, 1988 Ill. App. LEXIS 347
CourtAppellate Court of Illinois
DecidedMarch 22, 1988
Docket3-87-0548
StatusPublished
Cited by8 cases

This text of 521 N.E.2d 263 (In Re Estate of Kieras) 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
In Re Estate of Kieras, 521 N.E.2d 263, 167 Ill. App. 3d 275, 118 Ill. Dec. 195, 1988 Ill. App. LEXIS 347 (Ill. Ct. App. 1988).

Opinion

JUSTICE LUND

delivered the opinion of the court:

Petitioner Stanley Kieras, as administrator with will annexed of the estate of John Kieras, deceased, filed a petition for a citation to discover assets against respondent Ernest Kieras, decedent’s son, pursuant to section 16 — 1 of the Probate Act of 1975 (Ill. Rev. Stat. 1985, ch. 1101/2, par. 16 — 1). The circuit court of La Salle County granted the petition and issued the citation. The matter was heard in March and April 1987. The court subsequently ordered Ernest to pay $2,500 to the estate, and declared $47,006.58 in assets to be the property of Ernest. Stanley appeals on behalf of the estate.

Prior to 1977, the Kieras family consisted of John and Mary Kieras, and their four adult sons, Stanley, Raymond, Ernest, and Edward, all of whom were married. Stanley, Raymond, and Ernest, along with their families, lived near their father. Edward lived in Texas.

On March 23, 1977, Mary Kieras died. Shortly after her death, at a family gathering in John’s home, it was decided that Stanley’s name would be added to his father’s savings account. Shortly before his wife’s death, John executed a will which divided his estate equally among the three sons living in Illinois, and Stanley was named as executor.

On February 19, 1981, John Kieras went with his son Ernest to J. Paul Aplington, an attorney with whom John had previously sought legal help. Aplington had prepared a new will, which John executed that day. The new will named Ernest as executor, but divided John’s estate evenly among his four sons¡ That same day, John and Ernest went to the La Salle State Bank where John transferred his bank account into a new account in his name alone, removing Stanley’s name from the savings account. The balance of the account on February 19, 1981, was $17,238.23. John Kieras also executed a bank authorization card allowing Ernest to “sign or endorse checks, notes, drafts, etc., for deposit to my account, or otherwise, and to issue and sign checks or receipts against” John’s savings account.

On July 13, 1983, Ernest took John to attorney Thomas R. Clydesdale, who was Ernest’s attorney. John had never previously transacted any business with Clydesdale. Clydesdale prepared a deed whereby John conveyed his homestead real estate to Ernest, reserving a life estate to himself. Shortly after John’s death, Ernest sold the real estate for a net sale price of $31,784.68.

On July 18, 1983, John Kieras, again in Ernest’s company, withdrew, in cash, the balance of his savings account at the La Salle State Bank. The amount was $18,361.37. Later that same day, John and Ernest went to the Colonial Trust and Savings Bank in Peru, and John opened a new savings account in the joint names of Ernest Kieras and John Kieras. Two thousand five hundred dollars were put into this account. John handed $15,800 to Ernest, and Ernest deposited the money at the Colonial Trust and Savings Bank in an account in his own name. John Kieras took the remaining $61.37 home with him.

In May 1984, John Kieras was hospitalized. He remained hospitalized for three weeks, after which he was transferred to a nursing home. On May 29, 1984, he signed a power of attorney giving Ernest control of his affairs. Attorney Clydesdale prepared the document.

John Kieras died on August 24, 1984. His only assets were the household furnishings, certain cash John kept in a “tin box,” and certain life insurance policies payable to Ernest. Ernest used the joint account of $2,500 plus the proceeds from the two insurance policies to pay the expenses of John’s funeral. Ernest took the household furnishings and the tin box. Ernest sold some of the furniture. He also kept some of the furniture and gave some to his children.

Ernest declined to act as executor of his father’s estate even though named by the will as executor. The other three sons petitioned for the appointment of Stanley as administrator with will annexed, and the petition was granted on December 5, 1984. On July 17, 1985, Stanley filed a petition for citation to discover assets against Ernest, and the court granted the petition that same day. A citation was issued directing Ernest to appear and answer questions regarding the assets in his possession formerly belonging to his father, and the court heard the matter in March and April 1987. Stanley alleged that the money from the bank account and the transfer of John Kieras’ homestead to Ernest were not meant to be gifts. Ernest testified that the two transfers were gifts.

The question is whether or not a fiduciary relationship existed between Ernest and John. The parties stipulated that the bank account and the proceeds from the sale of the house totalled $47,006.58. The parties also agreed that the furniture sold outside the family brought $300.

The trial court issued an opinion on June 9, 1987, which stated, in part:

“John Kieras died on August 24, 1984. Shortly before his death Ernest Kieras took possession of a ‘tin box' in the home of John Kieras which contained some amount of cash. ***
*** The respondent states that he has no knowledge of or record of the amount in the ‘tin box’. There is no doubt that he was a fiduciary at the time he took possession of the ‘tin box’ and its contents. He knew that his father was seriously ill, that he had been named Executor of the Estate of John Kieras and that the estate was to be divided equally between himself and his three brothers.”

The court found the tin box contained $2,500, which, together with the $300 from the sale of furniture, should be turned over to the estate. Mistakenly, Ernest was ordered to pay over $2,500 instead of the correct sum of $2,800.

The trial court expressly found that a fiduciary relationship did not exist between John and Ernest Kieras in July 1983 when John transferred the proceeds of his savings account and his house to Ernest. The court determined that John was managing his own affairs in 1983 and for some time thereafter. As to the authority given Ernest in 1981 to withdraw funds from John’s savings account, the court found the authority was given as a convenience to John “in the event of need.” It was found that Ernest never used the power granted to him under the bank authorization card, and it was determined that the transfers to Ernest in 1983 were made by John of his own free will. A corresponding order was filed on July 14,1987.

Stanley argues a fiduciary relationship existed between John Kieras and his son Ernest Kieras in 1983 when John transferred the bulk of his assets to Ernest. Stanley points to the bank authorization card Ernest signed in 1981 and argues this established a fiduciary relationship as a matter of law. Alternatively, Stanley asserts that Ernest’s testimony showed a confidential relationship between himself and his father. Stanley argues that because a fiduciary relationship was created, all of Ernest’s actions with his father must be considered suspect and subject to the requirements of a fiduciary duty.

Ernest responds by pointing out that he never used the power conferred by the bank authorization card, and, therefore, he never acted for his own benefit with the property that was entrusted to him.

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Bluebook (online)
521 N.E.2d 263, 167 Ill. App. 3d 275, 118 Ill. Dec. 195, 1988 Ill. App. LEXIS 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-estate-of-kieras-illappct-1988.