In Re Estate Of Zukerman

578 N.E.2d 248 (1991)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Louis Rotfeld and Audrey Zukerman lived together for 12 years. On December 2, 1988, Rotfeld and Zukerman both died from injuries sustained in an automobile collision. In June 1987, 18 months before he died, Rotfeld went to the Oak Trust & Savings Bank and spoke to Robert Sullivan, a vice-president of the bank about reregistering a Commonwealth Edison bond in the amount of $125,000. Rotfeld requested that the bank hold the bond in a customer safekeeping account. Rotfeld told Sullivan that, upon his death, he wanted Zukerman to have the bond. Rotfeld requested that Sullivan handle the reissuance of the bond in the name of 'Louis Rotfeld, as Trustee for Audrey Zukerman,' and Rotfeld executed a bond power authorizing the transfer agent to reregister the bond in that name. Sullivan had the bond reissued in the name of 'Louis Rotfeld, as Trustee for Audrey Zukerman.' No formal trust agreement was ever executed. In August 1987, Rotfeld asked Sullivan to hold a second bond for safekeeping. This bond, a Ford Motor Credit Corporation bond in the amount of $ 75,000, was uncertificated and was registered by means of a book entry. Rotfeld told Sullivan that he also wanted Zukerman to have this bond in the event of Rotfeld's death. Sullivan never had the Ford Bond retitled. Sullivan got a safekeeping receipt which indicated that La Salle National Bank was holding the bond in safekeeping. The paperwork all bears the name 'Louis Rotfeld, as Trustee for Audrey Zukerman.' The Ford Bond was not properly reregistered and Sullivan continued to reregister the Ford bond in early 1988. He did not succeed prior to Rotfeld's death. Rotfeld told Sullivan that he wanted both bonds to go to Zukerman upon his death. Rotfeld specified that future interest payments were to be made to him as trustee for Zukerman. Rotfeld declared the interest income on his individual income tax returns. At the time of his death, both bonds were registered under Rotfeld's social security number. In Rotfeld's will he devised to Zukerman certain items of personal property and 45% of his residuary estate if she survived him by 30 days. After the deaths, D contacted the bondholders and directed them to turn them over. Without the knowledge or consent of P, D sold the Ford bond. D still holds the Commonwealth Edison bond. P instituted proceedings to recover the Commonwealth Edison bond and the proceeds of the Ford bond. The court found that Zukerman was the beneficiary of an express inter vivos trust created by Rotfeld and that her estate was entitled to possession of both bonds. D appealed.