In re Estate of Milus

2022 IL App (1st) 210729-U
Appellate Court of Illinois·Decided March 24, 2022·No. 1-21-0729·Unpublished

Opinion

2022 IL App (1st) 210729-U FOURTH DIVISION

March 24, 2022

No. 1-21-0729

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE APPELLATE COURT

OF ILLINOIS

FIRST JUDICIAL DISTRICT

In re ESTATE OF MARLA J. MILUS, deceased ) Appeal from the ) Circuit Court of

(ESTATE OF MARLA J. MILUS, DECEASED, ) Cook County BY ITS INDEPENDENT REPRESENTATIVE ) WILLIAM MILUS, JR. )

) No. 19 P 880,

Plaintiff-Appellee, ) cons. with 04 D 1114 )

v. )

) Honorable

WILLIAM MILUS, ) Terrence J. McGuire, ) Judge Presiding.

Defendant-Appellant.)

PRESIDING JUSTICE REYES delivered the judgment of the court.

Justices Lampkin and Rochford concurred in the judgment.

ORDER

¶1 Held: Affirming the grant of partial summary judgment in favor of a decedent’s estate where the decedent equitably owned her former spouse’s insurance policy and their marital settlement agreement provided for rights of successorship.

¶2 At the time of her passing in 2018, Marla Milus (Marla) was involved in post-decree litigation in the circuit court of Cook County with her former spouse, William Milus (William). Marla had alleged that William failed to comply with the provisions of the parties’ 2006 marital settlement agreement regarding life insurance. Specifically, Marla had asserted that William

dropped her as a beneficiary from his life insurance policy, despite her having made payments toward the insurance premiums. Marla died intestate, and her sole heir at law – her son William Milus, Jr. (William Jr.) – was appointed as the independent administrator of her estate. After the domestic relations case was consolidated into the probate proceedings, William Jr., as administrator, filed a complaint against his father, William. On the parties’ cross-motions for partial summary judgment, the circuit court found that Marla’s rights as the equitable owner of the life insurance policy transferred to her estate and that the estate (i.e., William Jr.) was entitled to $400,000 of life insurance coverage from the policy. Pursuant to Illinois Supreme Court Rule 304(b)(1), 1 William appeals from the denial of his motion for partial summary judgment and the grant of partial summary judgment in favor of Marla’s estate. As discussed below, we affirm the judgment of the circuit court.

¶3 BACKGROUND

¶4 The 2006 Judgment

¶5 After approximately 25 years of marriage, William filed a petition for dissolution of marriage in the circuit court of Cook County. On November 30, 2006, the circuit court entered a judgment for dissolution of marriage, which incorporated the parties’ marital settlement agreement (the judgment). William and Marla’s only child, William Jr., was 16 years old at the time of the judgment.

¶6 Section 4.2 of the marital settlement agreement addressed the issue of life insurance.2

1 Illinois Supreme Court Rule 304 (eff. Mar. 8, 2016) addresses appeals from final judgments that do not dispose of an entire proceeding. Under section 304(b)(1), a judgment or order entered in the administration of an estate which finally determines a right or status of a party is appealable without any special finding. Id.

2

Section 4.2 provides, in its entirety, as follows:

“LIFE INSURANCE: Each party shall keep and maintain any and all life insurance on his or her life. William shall maintain such insurance with a minimum death benefit of $400,000.00 for the benefit of the minor child, educational expenses for the minor child, and for the benefit of Marla until such

Among other items, the section set forth the parties’ respective obligations with respect to an insurance policy on William’s life. Section 4.2 provided, in part, that William was required to maintain and pay for a $400,000 life insurance policy with William Jr. as the beneficiary for the first 5.5 years after the 2006 judgment, at which point the beneficiary reverted to Marla. For the next 4.5 years – commencing in 2012 – William was required to maintain a minimum $200,000 life insurance policy, with the premium to be split between the parties; if Marla requested a policy in excess of $200,000, she was responsible for the premium. Marla requested $400,000 in coverage, and she paid the premium attributable to that amount. At the expiration of the 4.5-year period – or a total of 10 years from the entry of the judgment – William’s obligation to obtain such life insurance policy ceased. Section 4.2 provided that “[a]t such time, if Marla requests that William maintain any life insurance policy, Marla shall be responsible for any and all premiums and related expenses, if it is possible for William to maintain such policy or Marla shall otherwise obtain her own policy on William’s life.” William was required to cooperate if Marla chose to have him “maintain this insurance policy.”

time as the minor child is emancipated and no longer eligible to receive child support or college payments under this Agreement. Marla shall maintain such insurance with a minimum death benefit of $100,000.00 for the benefit of the child until such time as the child is emancipated and no longer eligible to receive child support or college payments under this Agreement. Each party shall name the other party as trustee for the exclusive use and benefit of the child as the beneficiary of any such insurance policy for the first five and one half (5.5) years, thereafter the beneficiary shall revert to Marla. Neither party may borrow against or encumber any such policy unless the death benefits in total remain at least $400,000.00 and $100,000.00 respectively. Each party may provide at his or her own option, additional insurance in excess of the amount required in this paragraph.

For the first five and one half (5.5) years, William shall be responsible for the payment in full of the premium on his $400,000 policy. Upon the expiration of five and one half (5.5) years from Judgment entry and lasting for a subsequent four and one half (4.5) years, William shall maintain a minimum of $200,000 life insurance policy, with the premium to be split equally by the parties. If Marla requests that William maintain a policy in excess of $200,000, Marla shall pay such premium. Upon the expiration of four and one half (4.5) years, or a total of ten (10) years from date of Judgment entry, William’s obligation to obtain such life insurance policy ceases. At such time, if Marla requests that William maintain any life insurance policy, Marla shall be responsible for any and all premiums and related expenses, if it is possible for William to maintain such policy or Marla shall otherwise obtain her own policy on William’s life. William shall cooperate if Marla chooses to have William maintain this insurance policy.”

¶7 Although not expressly contemplated by the judgment, William added his then-girlfriend and current wife, Christine Milus (Christine), as another primary beneficiary on the policy. William designated Christine as the beneficiary as to any death benefit in excess of $400,000. The available death benefit appears to have increased over time, eventually reaching $600,000. William charged Marla a pro-rated share of the premium, i.e., 66.6% (based on $400,000 in death benefits for Marla and $200,000 for Christine). Marla made the biannual premium payments from 2012 through the second payment due for 2016. On her final check to William in August 2016, Marla wrote “9-1-16 – 3-1-17,” i.e., the coverage period attributable to her premium payment. Marla paid approximately $5500 in total premium payments.

¶8 Section 11.6 of the judgment, entitled “Successors,” provides that the parties’ agreement is binding on and inures to the benefit of their heirs, executors, administrators, guardians, trustees, assigns, and other successors.

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