Kelly v. Lindenau

Ralph Falkenthal, decedent, validly executed a revocable trust in Illinois in 2006. The trust dictated that the trust assets would be distributed to Ralph’s three children, Jill, Jeff, and Judy (plaintiffs), if Ralph’s wife predeceased him. After Ralph’s wife died, he moved to Florida. Ralph purchased a home in Bradenton, where he cohabitated with Donna Lindenau (defendant). Ralph subsequently executed two amendments to the 2006 Trust, only the latter of which was relevant. In 2014, the second amendment to the trust added a devise granting the Bradenton residence to Donna. Despite being a Florida resident, Ralph had his Illinois attorney prepare the 2014 amendment, which he then executed in Florida in the presence of two witnesses, only one of whom signed the amendment. Ralph died in 2015, and Judy took over as successor trustee. Judy filed a petition to determine the validity of the 2014 amendment, arguing it was invalid for failing to comply with Florida’s execution requirements. Donna countered, arguing that Ralph’s intention to benefit her was clear and that either (1) the amendment’s terms should be reformed because the execution error was a mistake of law or (2) a constructive trust should be imposed in her favor for the Bradenton residence. The trial court granted Donna’s request to reform the 2014 amendment and directed Judy to transfer the Bradenton house to Donna. Jill, Jeff, and Judy appealed.