In re Marriage of Slesser, 2019 IL App (2d) 180505

- Case citation and parties
In re Marriage of Slesser, 2019 IL App (2d) 180505 (2d Dist. Sept. 10, 2019). Petitioner-Appellee: Donna Slesser. Respondent-Appellant: James D. Slesser. Judgment affirmed.

- Key legal issues
1. Whether recorded mortgages/memo entries claiming $300,000 loans from two parental revocable trusts to husband’s business created valid, enforceable liens against Lot 7.
2. Proper interpretation of trustee authority under the Revocable Living Trust of James A. Slesser and the Revocable Living Trust of Dorothy M. Slesser (including amendments naming co‑trustees and single-signature authority).
3. Whether respondent, as successor trustee, breached trustee duties or misapplied trust assets.
4. Whether the trial court erred by considering extrinsic evidence beyond the “four corners” of the recorded lien documents in evaluating the existence/validity of alleged loans.
5. Proper valuation of Lot 7 (primary asset of JDS Homes/JDS Home Builders).

- Holding/outcome
The appellate court affirmed. The trial court properly rejected the existence of $300,000 enforceable liens in favor of the trusts against Lot 7 and accepted the trial court’s valuation of Lot 7 (~$400,000–$450,000). The record did not support respondent’s declaratory-judgment claim for marital liabilities based on the alleged loans.

- Significant legal reasoning
The court emphasized substance over form. Although the trusts’ documents granted broad withdrawal powers (and an amendment permitted one trustee to act alone), respondent failed to produce documentary or bank evidence showing transfers from the trusts to JDS or him, promissory notes, repayments, or trust accountings substantiating the alleged loans. The recorded mortgages contained errors (transposed lender/borrower entries) and were filed before any actual $300,000 transfers. The trial court permissibly looked beyond the recorded instruments and required proof by a preponderance of the evidence; absent corroborating records, recording a mortgage or labeling an entry a “loan” did not create an enforceable lien. The court also credited testimony and contemporaneous business records showing lot-sale proceeds and an assignment/purchase of the bank’s mortgage rights for a different amount, undermining respondent’s lien claim.

- Practice implications
- Trustees must maintain contemporaneous, clear accountings and documentation of transfers, loans, disbursements, and trust decisions—especially when family business transactions occur.
- Recording a mortgage or lien without actual indebtedness, supporting loan documents, or repayment records is risky; courts will probe substance and may disregard form.
- In dissolution proceedings, litigants must be prepared to trace funds and produce bank statements, assignments, promissory notes, and trust amendments.
- Counsel for trustees and family-business owners should ensure proper corporate/formal steps (correct parties, written loan agreements, trustee resolutions) before asserting secured claims.