Peters v. Meyers

96 N.E.2d 493, 408 Ill. 253, 1951 Ill. LEXIS 270
CourtIllinois Supreme Court
DecidedJanuary 18, 1951
Docket31747
StatusPublished
Cited by14 cases

This text of 96 N.E.2d 493 (Peters v. Meyers) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peters v. Meyers, 96 N.E.2d 493, 408 Ill. 253, 1951 Ill. LEXIS 270 (Ill. 1951).

Opinion

Mr. Justice Thompson

delivered the opinion of the court:

This is a suit in chancery filed in the circuit court of Stephenson County by appellants, Robert D. Peters and Pearl Hausz, who are the children and residuary devisees of one Eudora Meyers, deceased, against their stepfather, Otto Meyers, who is the surviving husband of said deceased, to impress a trust in favor of plaintiffs upon certain real estate, the legal title to which stood in the names of defendant and his said wife as joint tenants at the time of the latter’s death. The original complaint filed was stricken on motion by defendant. The plaintiffs then filed an amended complaint to which a motion to strike was also filed. This motion to strike was also granted and plaintiffs elected to stand on the amended complaint. The court entered an order and decree that the amended complaint be dismissed at plaintiffs’ costs and that defendant go hence without day. From that decree plaintiffs appeal to this court, a freehold being involved.

The following are the facts set forth in the amended complaint: On and prior to October 9, 1935, plaintiffs’ mother, Eudora Meyers, was the owner in fee simple of certain real estate described in the amended complaint, which she had acquired with her own funds while she was married to plaintiffs’ father and some years prior to her marriage to the defendant, Otto Meyers. On October 9, 1935, she executed her last will and testament, wherein she nominated her husband, the defendant herein, executor without bond, gave him all household goods, an automobile owned by her at the time of her death, and $500 in full of all claims and demands against her estate, and then devised and bequeathed the residue of her estate to her son and daughter, the plaintiffs herein. She also, on the same day, conveyed the said real estate above mentioned by warranty deed to Evelyn E. Barrett, an intermediary, who paid no money for such conveyance, and who on the next day re-conveyed the said premises by warranty deed to the said Eudora Meyers and her husband, the defendant, as joint tenants and not as tenants in common. It is alleged that the defendant paid no consideration, either in money or thing of value or otherwise, for and as a part of effecting the transfers of title to the above-mentioned premises, as above alleged, and that no presumption of gift arose from such transfer of title, inasmuch as the defendant was the husband of Eudora Meyers. It is further alleged that Eudora Meyers died testate on or about June 21, 1949, and that a petition for the probate of her said last will and testament is pending in the county court of Stephenson County. The amended complaint prays that the defendant be declared trustee of the real estate for the plaintiffs as residuary devisees under the last will and testament of Eudora Meyers, deceased, and also sets forth a general prayer for relief.

The motion to strike was based on the grounds that the plaintiffs allege no facts sufficient to entitle them to relief, that the facts set forth do not establish a resulting trust, and that the amended complaint shows that any rights of plaintiffs are barred by the laches of Eudora Meyers during her lifetime.

The principal contention made by plaintiffs as appellants in this court is that because of the fact that their mother, Eudora Meyers, was the wife of the defendant at the time of the execution of the deeds herein mentioned, there is no presumption that she intended such transfer of title as a gift, and therefore the conveyance by her as aforesaid of her separate property through an intermediary to her husband and herself in joint tenancy without any consideration therefor moving to her from her husband is sufficient to establish a resulting trust.

Although plaintiffs as appellants in this court designate the trust which they claim arose out of the transaction in question as a resulting trust, it is not so designated in the amended complaint. The character of the trust relied on by them, other than that it is a trust created by operation of law, does not appear from the allegations of the amended complaint. All trusts created by operation of law are either resulting or constructive trusts. Murray v. Behrendt, 399 Ill. 22.

A resulting trust arises by operation of law where one person pays or furnishes the consideration for a deed conveying real estate to another. Whether or not such a trust arises depends in every case upon the intention, at the time of the conveyance, of the person who furnishes the purchase price. (Brod v. Brod, 390 Ill. 312; Rolofson v. Malone, 315 Ill. 275.) Such a trust arises, if it arises at all, the instant the legal title is taken, and is founded upon the natural equity that he who pays for the property should enjoy it, unless he intended by the vesting of title to confer a beneficial interest upon the grantee. The payment of the consideration raises a prima facie presumption in favor of a resulting trust. This presumption, however, may be rebutted by parol proof of an intention on the part of the payor that the grantee shall take the beneficial interest and not merely the legal title. (Rolofson v. Malone, 315 Ill. 275.) No general rule can be stated that will determine when q conveyance made to one other than the person furnishing the consideration will carry with it a beneficial interest and when it will be construed to create a trust, but the intention must be gathered from the facts and circumstances as shown by the record in each case. (Rolofson v. Malone, 315 Ill. 275; Dodge v. Thomas, 266 Ill. 76.) Where a deed absolute in terms and without condition or reservation conveys real estate to two persons as joint tenants, the language of the deed is sufficient to show an express intent to convey both the legal title and the beneficial interest to the two grantees as joint tenants, but if the purchase price was paid by only one of such grantees, this indicates an intention that this grantee is the only one beneficially interested in the property, and under such facts, the expressed intent as shown by the deed must give way to the rule of equity which protects the party paying the purchase price by raising a resulting trust in his favor. (Kane v. Johnson, 397 Ill. 112.) However, the rule recognized by this court is that where the husband pays the purchase price for property conveyed to his wife, no presumption arises that he intended the beneficial interest to be in him, but instead the presumption is that he intended to make a gift to his wife. (Mauricau v. Haugen, 387 Ill. 186, 196; Nicholoff v. Nicholoff, 384 Ill. 377, 383.) It is also the rule that where the wife furnishes the purchase money to purchase from a third person and the deed is taken in the name of the husband, no presumption of a gift arises to defeat the establishment of a resulting trust. (Mauricau v. Haugen, 387 Ill. 186; Lutyens v. Ahlrich, 308 Ill. 11; Hinshaw v. Russell, 280 Ill. 235; Wright v. Wright, 242 Ill. 71.) And a. resulting trust which arises in favor of an ancestor at the time the property was purchased may be enforced by those who are beneficially interested in the estate, either as heirs-at-law or residuary devisees. Kane v. Johnson, 397 Ill. 112.

Constructive trusts are divided into two general classes, one being where actual fraud is considered. as equitable ground for raising the trust, and the other being where the existence of a confidential relation and the subsequent abuse of the confidence reposed is sufficient to establish the trust. (Kester v. Crilly, 405 Ill. 425; Brod v. Brod, 390 Ill.

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Bluebook (online)
96 N.E.2d 493, 408 Ill. 253, 1951 Ill. LEXIS 270, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peters-v-meyers-ill-1951.