Ranger v. Ranger

883 N.E.2d 750, 379 Ill. App. 3d 752
CourtAppellate Court of Illinois
DecidedMarch 3, 2008
Docket4-07-0065
StatusPublished
Cited by3 cases

This text of 883 N.E.2d 750 (Ranger v. Ranger) 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
Ranger v. Ranger, 883 N.E.2d 750, 379 Ill. App. 3d 752 (Ill. Ct. App. 2008).

Opinion

JUSTICE COOK

delivered the opinion of the court:

Plaintiff, Dolores M. Ranger as trustee, filed a complaint for construction on April 4, 2006, requesting the trial court construe various parts of the William E. Ranger and Dolores M. Ranger Revocable Living Trust Agreement (Trust). Defendants are Dolores, as the current beneficiary of the Trust, and her five children, Brenda Albrecht, Michael Ranger, Diana Williamson, Mark Ranger, and Julie Ranger, as contingent remainder beneficiaries. Defendant Michael Ranger opposed the trustee’s proposed administration of certain Trust provisions, namely, William’s special directives, which dealt specifically with the family business, William Ranger and Sons Excavating (business). On October 4, 2006, Michael filed a motion for summary judgment alleging the Trust clearly stated that the business goes to him upon the death of William Ranger and requesting that judgment be entered in his favor. The trial court granted Michael’s motion. Defendants Dolores, Brenda, Mark, and Julie (appellants) appeal. We reverse and remand.

I. BACKGROUND

The Trust was entered into on December 21, 1994, by William and Dolores for federal-estate-tax marital-deduction purposes. Both were named as trustors and cotrustees. Upon the death of William, Dolores became the sole “Surviving Trustor” (as defined by section 4.01 of the Trust), trustee, and surviving spouse. In her role as trustee, Dolores proposed an administration of the Trust. Michael disputed the trustee’s proposed administration, so the trustee filed a complaint for declaratory relief.

The dispute centered on whether the business in its entirety was to be immediately transferred to Michael or whether William’s share in the business became part of trust B entitling the surviving trustor to the net income of William’s share of the business during her lifetime. We note that while not part of the record, all parties agree that Michael holds 49% ownership of the business and William’s pour-over will made William’s 51% ownership of the business part of the “Trust Estate” (as defined by section 1.01 of the Trust).

In her complaint, the trustee argued that it was the trustors’ intention to benefit the Surviving Trustor during her lifetime with all of the assets held in the Trust. Trustee proposed the Trust should be interpreted as William intended to give Michael control over the business and not sole ownership. Under the trustee’s proposal, Michael “may effectually manage and operate the Company until his death as a life estate or the prior sale of said Company and that the Company stay in [tjrust until said Company is sold or Michael W. Ranger is deceased.” Michael disagreed with this position, as did his sister Diana.

Under article 1, see appendix, the Trust states that it was “formed to hold title to real and personal property for the benefit of the Trustors of this trust and to provide for the orderly use and transfer of these assets upon the death of the Trustors.” The “Trust Estate” is defined as “all property, transferred or conveyed to and received by the [t]rustee, held pursuant to the terms of this instrument.”

Under article 3, the Trust states that upon the death of one of the trustors, the surviving trustor shall do the following:

“collect all insurance proceeds payable to the [t] rus tee by reason of such death, and all bequests and devises distributable to the Trust Estate, and shall divide the entire Trust Estate into three separate trusts to be known and herein designated as survivor’s trust ‘A’, decedent’s trust ‘B’ and excess property trust ‘C’.”

Under the same article, the Trust states that trust A consists of the separate property of the surviving trustor, trust B consists of the separate property of the decedent trustor, and trust C consists of that portion, if any, of the Trust Estate that exceeds the total of the amounts allocated to trusts A and B. The Trust is to be administered in such a way as to minimize all applicable taxes.

According to subsections 3.09, 3.10, and 3.11, upon the death of one of the trustors, the net income of trusts A, B, and C, shall be paid to the surviving spouse.

Article 4 of the Trust begins with section 4.01, entitled “Second Death.” Section 4.01 states the following:

“On the death of the last [tjrustor to die (the ‘Surviving Trustor’) the [tjrustee shall distribute the principal of the ‘A’ [t]rust and of the ‘C’ [t]rust and any accrued or undistributed income from the principal of the ‘B’ [t]rust in such a manner and to such persons, *** as directed in this [t]rust [ajgreement.”

Section 4.02, entitled “Payment of the Second Death Expenses,” also begins, “On the death of the surviving Trustor,” and then directs the trustee to pay expenses from trust A. Finally, section 4.03, entitled “Trust Income and Principal Distribution,” without specifically referring to the death of the surviving trustor, directs the successor trustee to:

“apply and distribute the net income and principal of each of the shares of the resulting Trust Estate (consisting of the ‘A’ [t]rust, the ‘B’ [t]rust, and the ‘C’ [t]rust) after giving effect to the section of this [t]rust [ajgreement entitled ‘Special Directives’ to the following [b]eneficiaries in the fractional or percentage shares as indicated.”

Under section 4.03, William’s and Dolores’s beneficiaries are their five children and each is to receive 20% of the Trust Estate.

Section 9.02 directs the trustees to do the following:

“allocate, hold, administer[,] and distribute the Trust assets as hereinafter provided:
a) Upon the death of the first [tjrustor, the [tjrustee shall make any separate distributions that have been specified by the deceased [t]rustor. The [t]rustee shall also take into consideration the appropriate provisions of this [ajrticle.
b) Upon the death of the surviving spouse, the [t]rustee shall hold, administer[,] and distribute the Trust assets in the manner prescribed.”

Section 9.03, entitled “Personal Property Distribution,” states, “Notwithstanding any provision of this [t]rust [ajgreement to the contrary, the [tjrustee must abide by any memorandum by the [t]rustors — particularly that contained in the section entitled ‘Special Directives’ incorporated into this [t]rust instrument.”

William Ranger’s special directives contained six provisions. The first provision lists the recipients of his affection as first, his spouse, Dolores, and second, his five children. The fourth provision states, “Upon my death, my business known as William Ranger and Sons Excavating, including all real and personal property owned by said business, is to go entirely to my son Michael W. Ranger.” The fifth provision states that if Michael decides not to take the business, the business shall be sold and the proceeds divided equally among William’s children.

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Cite This Page — Counsel Stack

Bluebook (online)
883 N.E.2d 750, 379 Ill. App. 3d 752, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ranger-v-ranger-illappct-2008.