Appellate Law

Children?s Claim For Constructive Trust Get De Novo Review

By Steven R. Merican

After his ex-wife died, Edward Trevino got into a dispute with his children over the disposition of a $100,000 life insurance benefit. Edward was the beneficiary on the policy. But his children pointed to a marital settlement agreement that stated they were to be beneficiaries of any ?death benefits.?

The children?s guardian asked for a constructive trust over the life insurance benefit. After the trial court imposed a constructive trust, Edward appealed that order.

The first issue was the standard of review. The Second District Illinois Appellate Court distinguished between review of imposition of a constructive trust and of a marital settlement agreement. ?At the outset, we note that, even though the order Edward challenges is one imposing the equitable remedy of a constructive trust ? our review is de novo. Typically, the imposition of a constructive trust is a matter for the discretion of the trial court ? Here, however, the issue is not whether the trial court abused its discretion in imposing a constructive trust, but whether the marital settlement agreement provided a legal basis for the trial court?s order. Edward has asked us to review only the trial court?s interpretation of the agreement. Our review of a court?s interpretation of a marital settlement agreement is de novo.?

The appellate court ruled that ?death benefits,? as used in the marital settlement agreement, included the life insurance benefit, and affirmed the imposition of a constructive trust. Read the whole case, In re Estate of Trevino, No. 2007-0503 (4/7/08), by clicking here.

Full post as published by Illinois Appellate Lawyer Blog on June 12, 2008 (boomark / email).