Puzzo v. Gerulis (In re Gerulis)

• Decision Date: 05 March 2020
• Docket Number: Appeal No. 3-18-0734
• Citation: 168 N.E.3d 181,445 Ill.Dec. 717,2020 IL App (3d) 180734
• Parties: IN RE ESTATE OF Eugenius GERULIS, Deceased (Laima Puzzo and Andrius Gerulis Petitioners-Appellees, v. Rimas Gerulis and Rita Gerulis, Respondents-Appellants).
• Court: United States Appellate Court of Illinois

2020 IL App (3d) 180734
168 N.E.3d 181
445 Ill.Dec. 717

IN RE ESTATE OF Eugenius GERULIS, Deceased

(Laima Puzzo and Andrius Gerulis Petitioners-Appellees,
v.
Rimas Gerulis and Rita Gerulis, Respondents-Appellants).

Appeal No. 3-18-0734

Appellate Court of Illinois, Third District.

Opinion filed March 5, 2020
Rehearing denied June 9, 2020

James A. Murphy and Marron A. Mahoney, of Mahoney, Silverman & Cross, LLC, of Joliet, for appellants.

Daniel F. Marren, of Peter J. Latz & Associates, LLC, of Oak Park, and A. Michael Wojtak, of Tracy Johnson & Wilson, of Joliet, for appellees.

JUSTICE McDADE delivered the judgment of the court, with opinion.

¶ 1 Rimas Gerulis became attorney-in-fact for his father, Eugenius Gerulis (Eugenius), when Eugenius's wife died. Thereafter, Eugenius returned to Illinois and moved in with Rimas, who arranged over the next several years for Eugenius's funds to be placed in joint accounts with him. Rimas also introduced Eugenius to an attorney who assisted Eugenius in executing a new will substantially benefitting Rimas to the detriment of Eugenius's two other children (petitioners). The propriety and consequences of those actions were and are in dispute. The trial court ordered Rimas and his wife Rita (respondents), to reimburse Eugenius's estate for various amounts of claimed "inter vivos " gifts and to set aside Eugenius's new will. The trial court also ordered respondents to pay $290,690.63 in prejudgment interest to Eugenius's estate. Respondents appeal. We affirm in part, reverse in part, and remand with directions.

¶ 2 I. BACKGROUND

¶ 3 Eugenius was originally from Lithuania. He immigrated to the United States sometime around 1951. He and his wife Vale lived in Illinois. They had three children: (1) Laima Puzzo, (2) Rimas Gerulis, and (3) Andrius Gerulis. Laima is the eldest, and Andrius is the youngest. Rimas is the eldest son.

¶ 4 Eugenius worked as an electrical engineer draftsman for the City of Chicago. In 1985, he retired and moved to Florida with Vale. In 2000, they executed wills and a joint trust agreement. They also executed two mutual durable powers of attorney for property and for living wills. Each gave the powers of attorney to the other, with Rimas as successor. In 2001, Vale died, and Eugenius remained in Florida.

168 N.E.3d 185

But in 2004, Eugenius fell and fractured his back. As a result, he moved in with respondents in Wheaton, Illinois. Eugenius died on December 28, 2009, at the age of 87.

¶ 5 A. Eugenius's Health and Competency

¶ 6 Before moving to Florida, Eugenius earned a doctorate in Divinity, for which he wrote a dissertation on prayers. He became the editor of his church newspaper. After his return from Florida, Eugenius resumed writing articles for his church paper. He would write on the crisis in the church, the reforms he believed were needed, and other religious matters, as well as on correcting historical inaccuracies.

¶ 7 Reverend deacon Ericka Brooks had known Eugenius and Vale since 1951. She testified that through mid-2009, Eugenius was mentally one of the strongest people she had known for his age. She explained that they would discuss world events. She testified that when he returned to Illinois, Eugenius began giving sermons and leading services at their church. She described the sermons as being of "high intellectual level." She also stated that he donated money to the church between 2004 and 2009. She believed he was competent to do so.

¶ 8 Dr. Pranus Jurkas testified that he met Eugenius at the Baltic University back in 1947, and they have since remained friends. When Jurkas's wife died in the summer of 2006, he asked Eugenius to officiate the funeral. He believed that Eugenius was fully competent during the ceremony, with a good memory and no "trace of deterioration in [his] mental capacity." He testified that Eugenius "had his full mind and his brain was working excellent."

¶ 9 Eugenius changed his trust and will in June 2006. Also, in 2006, he sold a car to his daughter, Laima. She had no doubt that he was competent to decide to sell his car to her. She believed that Eugenius "was a quirky man," socially awkward, and with difficulties relating to people. She had not asked Eugenius to move in with her, believing it would not be the best arrangement for Eugenius because her house was small and her family members did not speak Lithuanian. She stated that Eugenius did not feel comfortable speaking English. During her conversations with Eugenius between 2004 and 2009, Laima never thought that he was confused.

¶ 10 Similarly, Geidrius Siautias, a relative of Eugenius, testified that from 2004 through 2009, Eugenius was "mentally sharp." Steven Hajek, a handyman who befriended Eugenius, testified that they spoke on a weekly basis during the same time period. He recalled that Eugenius never seemed confused and was "very competent and sharp."

¶ 11 Dr. Gaile Sabaliauskas, a cardiology specialist, regularly examined Eugenius at least every six months between January 2006 and April 2009. She found him always "mentally alert and oriented to time, place, and person and understanding of what was going on around him." She found that Eugenius "always seemed as though he understood what was going on." She stated that "he never appeared confused." She explained that her conclusions were from regularly conducted neuro-psych examinations.

¶ 12 During the time he lived with respondents, Eugenius's physical health increasingly deteriorated. His heart condition required insertion of a defibrillator and pacemaker. He suffered a ministroke and had a bleeding ulcer. In 2006, he experienced a compression fracture and another one in July 2009. Following the 2009 fracture, Eugenius was hospitalized before

168 N.E.3d 186

being admitted to the Alden Rehabilitative Center in Naperville, where he remained until his death.

¶ 13 The parties assert that in the five years leading to his death, Eugenius was a physically disabled person as defined by section 11a-2 of the Probate Act of 1975 ( 755 ILCS 5/11a-2 (West 2008) ). He made use of incontinence underwear and eventually required assistance changing it. He also required assistance taking baths and getting dressed. When Eugenius moved in with respondents, Rimas worked as a commodities broker for the Linn Group at the Chicago Board of Trade. However, from August 2004 until July 2009, Rimas gave up his job and provided around-the-clock care to Eugenius, including bathing, dressing, and changing him after he became incontinent. During that time, Rimas's wife, Rita, worked at MidAmerica Bank—now PNC Bank.

¶ 14 B. Eugenius's Bank Accounts and Related Transactions

¶ 15 While living in Florida, Eugenius had two bank accounts with AmSouth Bancorporation (AmSouth).¹ The first account (ASB-A) was held in joint tenancy with right of survivorship with his three children. The second account (ASB-B) was held in joint tenancy with Vale and their two sons. Also, while living in Florida, Eugenius and Vale purchased a condominium.

¶ 16 In November 2004, after he began living with Rimas, Eugenius and Rimas went to MidAmerica Bank together and opened a joint account (MAB-1), with right of survivorship. In the same week, Eugenius certified making a gift of $130,000 to Rimas. Eugenius then executed (1) a withdrawal order from his Pacific Life policy account, (2) an "Annuity Full Surrender Request" form on his Prudential Financial account, and (3) a "Lincoln Financial Distribution" request form. The Prudential Financial surrender was in the form of a check payable to Eugenius, whereas the Lincoln Financial distribution was made into the new MidAmerica Bank joint account.

¶ 17 In December 2004, Rimas sold his home in Wheaton. Using the sale's proceeds, which he added to a check in his name and drawn on the MidAmerica Bank account for $130,000, Rimas purchased a new house in Naperville, Illinois. Deacon Brooks testified that the new house was accommodating to Eugenius's physical infirmities with a ramp, easy access, and everything on one floor. These accommodations included a bedroom with a walk-in shower for Eugenius's convenience.

¶ 18 Around the same time, Eugenius sold his condominium in Florida by executing a warranty deed with Rimas signing as cotrustee on the deed. The proceeds of the sale, totaling $335,773.87, were deposited in the MidAmerica Bank joint account on December 24, 2004. The same day, Rimas executed a check from that account for $333,640.13. This amount was distributed in three certificates of deposits, which Eugenius and Rimas held in joint tenancy. These accounts were MidAmerica CD-A, MidAmerica CD-B, and MidAmerica CD-C.

¶ 19 The day before the deposits were made, Eugenius and Rimas went to MidAmerica Bank and opened another joint account (MAB-2). Between 2004 and 2009, Eugenius's social security and pension benefits in the total amount of $156,529 were deposited.

¶ 20 In 2007, Rimas deposited $46,402.75 from AmSouth account ASB-A and

168 N.E.3d 187

$14,058.13 from AmSouth account ASB-B into a money market held in his and Rita's name at MidAmerica Bank—account MAB-3. In April 2008, Rimas made out a check from account MAB-2 to Rita for $4000.

¶ 21 In 2009, Rimas made a...