Justia Trusts & Estates Opinion Summaries
In re Estate of Guenther
Raymond A. Guenther, Jr. died intestate, and Damon Bechtold was appointed as the personal representative of his estate. Bechtold managed the estate's assets, paid claims, and filed a petition for complete settlement, which included a final accounting and a schedule of distribution listing Raymond A. Guenther, Sr. as the sole heir. The county court approved the final accounting and directed the distribution of the estate's assets to Guenther Sr. The final accounting did not list any personal representative fees.Several months later, Bechtold filed a motion seeking fees for his services as personal representative. The county court denied the motion, stating that the earlier order of complete settlement was a final, appealable order, and Bechtold had not filed a timely appeal. Bechtold then appealed the denial of his motion for fees.The Nebraska Supreme Court reviewed the case and determined that the order of complete settlement, which approved the final accounting and directed the distribution of the estate's assets, was a final, appealable order regarding Bechtold's entitlement to fees. Since Bechtold did not appeal this order within the required timeframe, the court concluded that it lacked jurisdiction to review the denial of his subsequent motion for fees. Consequently, the appeal was dismissed. View "In re Estate of Guenther" on Justia Law
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Nebraska Supreme Court, Trusts & Estates
In the Matter of the Estate Of Mack
Robert Mack, a beneficiary of his parents' estates, contested the distribution of assets from his mother’s will and his father’s testamentary trust. After his parents passed away, his brothers Hugh and Eric, acting as co-personal representatives and co-trustees, filed a petition for distribution to Robert. The circuit court approved the distribution after Robert’s attorney did not object at the hearing. Robert later obtained new counsel and filed a motion for relief from the order of distribution, claiming his previous attorney did not inform him of the hearing or the proposed distribution.The Circuit Court of the Third Judicial Circuit in Codington County, South Dakota, denied Robert’s motion for relief under SDCL 15-6-60(b). The court found Robert’s claim that he had no communication with his attorney since late 2022 not credible, based on his previous conduct in court proceedings. The court also concluded that the order of distribution was fair and equitable, despite Robert’s request for an evidentiary hearing to contest the valuation of the estate assets.The Supreme Court of the State of South Dakota reviewed the case and found that the circuit court abused its discretion in denying Robert’s motion for relief. The Supreme Court noted that Robert’s affidavit, which stated he had no knowledge of the hearing or the proposed distribution, was unrefuted. Additionally, the court highlighted the pending disciplinary proceedings against Robert’s former attorney, which raised concerns about the attorney’s ability to practice law. The Supreme Court reversed the circuit court’s decision and remanded the case with directions to grant the motion for relief from the order of distribution and to set an evidentiary hearing on the petition for distribution. View "In the Matter of the Estate Of Mack" on Justia Law
Kingstone v. Kingstone
Brett Kingstone and Trisa Tedrow Kingstone were married in Florida in July 2020 and have one minor child, L.R.K., born in 2021, who has hemophilia, Fragile X syndrome, and developmental and speech delays. The couple separated in August 2022, and Brett initiated a divorce action in Florida and a child custody action in North Dakota in March 2023. The Florida court granted the divorce in August 2023, but did not address child-related issues. In December 2023, the North Dakota district court awarded Trisa primary residential responsibility for L.R.K. and set Brett's child support at $5,000 per month, including an upward deviation of $1,500.Brett Kingstone appealed, arguing the district court erred in several aspects, including reliance on expert testimony, calculation of his net income, the upward deviation of child support, and refusal to amend the judgment. The district court had denied Brett's motion to amend the judgment but clarified the exchange location for L.R.K. would be at the child's home unless mutually agreed otherwise.The North Dakota Supreme Court reviewed the case. It held that the district court did not abuse its discretion in relying on the expert witness to determine Brett's income, including income from irrevocable trusts and recurring capital gains. However, the Supreme Court found the district court's findings insufficient to support the upward deviation in child support under the guidelines and remanded for additional findings and redetermination. The Supreme Court also directed the district court to reconsider the amount of the life insurance policy based on the redetermined child support obligation. The court affirmed the district court's decision regarding the exchange provisions for L.R.K. and the requirement for Brett to maintain a life insurance policy for the child. View "Kingstone v. Kingstone" on Justia Law
Guardianship and Conservatorship of G.I.C.
The case involves the distribution of trust assets following the death of the surviving trustor, G.I.C. The trust agreement initially provided for specific distributions of farmland to the trustors' five children. However, the land was sold to fund the trust before its termination, leading to a dispute over how the remaining liquidated assets should be distributed. Luke, one of the beneficiaries, argued that the assets should be distributed proportionately to the value of the specific land parcels each beneficiary would have received. The trustee, Bremer Trust, and Luke’s siblings contended that the assets should be distributed equally among the beneficiaries.The District Court of Sargent County, Southeast Judicial District, initially ordered an equal distribution of the liquidated assets among the five children. This decision was based on the interpretation that the trust agreement reflected an overall intent to treat the beneficiaries equally, despite the specific land distributions being impossible due to the sale of the land.The North Dakota Supreme Court reviewed the case and reversed the district court's decision. The Supreme Court held that the trust agreement's primary intent was to provide for the trustors' care and support during their lifetimes, with a secondary intent to distribute specific parcels of land to the children upon the trust's termination. The court found that the most consistent interpretation with the trustors' intent was to distribute the remaining trust assets proportionately to the value of the specific land distributions each beneficiary would have received. The case was remanded for redistribution of the trust assets in accordance with this interpretation. View "Guardianship and Conservatorship of G.I.C." on Justia Law
Posted in:
North Dakota Supreme Court, Trusts & Estates
Peterka v. Janda
Jared Peterka, a neighbor and tenant of John and Irene Janda, assumed the lease of their farmland in 2012. The lease was renewed every three years, and in 2019, a right of first refusal for Peterka to purchase the land was added. In October 2018, the Jandas established a living trust and conveyed the property into it, with their daughters as residuary beneficiaries. In June 2021, the Jandas and Peterka executed an option to purchase the property. Shortly after, guardianship proceedings were initiated, and the Jandas were found incapacitated. The guardians rescinded the option to purchase.Peterka filed a complaint for declaratory judgment to validate the option to purchase. The Defendants counterclaimed, arguing the option was the result of undue influence and that the Jandas lacked capacity. After a four-day bench trial, the District Court of Traill County found the option to purchase was facially valid and not a product of undue influence. However, it ruled the option was voidable under N.D.C.C. § 14-01-02 due to the Jandas' lack of capacity and dismissed Peterka’s complaint.The North Dakota Supreme Court reviewed the case. Peterka argued the district court erred in its findings on capacity. The Supreme Court clarified that the capacity to enter into a contract and the capacity under N.D.C.C. § 14-01-02 are distinct. The court found the district court did not misstate the law and its findings were supported by evidence. The Supreme Court affirmed the district court’s judgment, holding that the option to purchase was voidable under N.D.C.C. § 14-01-02 due to the Jandas being of unsound mind but not entirely without understanding. View "Peterka v. Janda" on Justia Law
In re: Estate of Schappell
The decedent, Michael Gerard Schappell, died intestate in 2021, leaving no close relatives. He had a stepdaughter, Karen Ellis, who had been part of his life since she was four years old. Ellis claimed that she had a father-daughter relationship with the decedent and sought to be recognized as his heir under the doctrine of equitable adoption. She petitioned the Orphans’ Court for Montgomery County to be named the sole heir to the decedent’s estate.The Orphans’ Court denied Ellis’s initial petition but later allowed her to refile. The court then denied a motion for summary judgment filed by other potential heirs and transmitted seven issues to the Circuit Court for Montgomery County for a jury trial, including whether Ellis was equitably adopted by the decedent. The Appellate Court of Maryland vacated the Orphans’ Court’s order, holding that only the issue of equitable adoption should be transmitted to the circuit court, as it involved a mixed question of fact and law.The Supreme Court of Maryland reviewed the case and established a two-step test for equitable adoption. First, a claimant must demonstrate by clear and convincing evidence the decedent’s intent to adopt, which can be shown through an unperformed express agreement or other acts indicating intent. Second, the claimant must show that the decedent acted in accordance with this intent by treating the claimant as a natural or legally adopted child and representing this to the public.The Supreme Court reversed the judgment of the Appellate Court of Maryland and remanded the case to the Orphans’ Court for Montgomery County for further proceedings based on the new standard for equitable adoption. View "In re: Estate of Schappell" on Justia Law
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Maryland Supreme Court, Trusts & Estates
Estate of Spofford
Michael Zani and Peter Zani, sons of Patricia M. Spofford, appealed a summary judgment from the Lincoln County Probate Court. The court found no genuine issue of material fact regarding Spofford’s testamentary capacity when she executed her will on March 1, 2018. The Zanis argued that there was a genuine issue concerning her testamentary capacity, despite having no direct evidence from the date the will was executed. They contended that other evidence from before and after the will's execution cast doubt on her capacity.The Probate Court granted summary judgment, concluding that Spofford had the requisite testamentary capacity. The court relied on videos of the will’s execution, which showed Spofford understood the nature of her actions, knew the extent of her estate, identified her family members, and expressed clear wishes about her estate's disposition. Additionally, affidavits from Spofford’s attorney and a witness, as well as testimony from her primary care physician, supported the conclusion that she was competent on the day she executed her will.The Maine Supreme Judicial Court reviewed the case de novo and affirmed the Probate Court’s judgment. The court found that the evidence presented by the Zanis, including incidents and medical notes from before and after the will's execution, was too remote to create a genuine dispute of material fact regarding Spofford’s testamentary capacity on March 1, 2018. The court also noted that a diagnosis of dementia or Alzheimer’s disease does not preclude testamentary capacity and that being under guardianship or conservatorship does not automatically negate the ability to execute a will. The judgment of the Probate Court was affirmed. View "Estate of Spofford" on Justia Law
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Maine Supreme Judicial Court, Trusts & Estates
In re Estate of M.A.C.
Lisa Cole appealed the Eighteenth Judicial District Court, Gallatin County’s decision that precluded her from inheriting the estate of her deceased minor child, M.A.C., who died intestate. M.A.C. tragically died in a car accident in March 2020. At the time, M.A.C. and her brother Mythias were living with their half-sister Samara. Lisa, their natural mother, had not been in contact with her children for some time and had not provided financial support. The insurance company sought to distribute a settlement to M.A.C.'s estate but found no estate had been opened. Attempts to contact Lisa were unsuccessful, leading to the appointment of a personal representative for the estate.The District Court appointed Sunny Yocom as the personal representative after a hearing. The estate petitioned to preclude Lisa from inheriting, citing her refusal to support M.A.C. Lisa opposed the petition and sought to remove Yocom as the personal representative. The court held an evidentiary hearing where Lisa did not appear but was represented by her attorney. Testimonies from family members and school personnel, along with evidence from the Social Security Administration, supported the claim that Lisa had not supported M.A.C. and had misused her survivor benefits.The Supreme Court of the State of Montana reviewed the case and affirmed the District Court’s decision. The court held that § 72-2-124, MCA, precluded Lisa from inheriting because she had refused to support M.A.C. The court found substantial evidence supporting the District Court’s findings, including testimonies and SSA letters. The court also upheld the denial of Lisa’s motion to appear remotely and her challenges to Yocom’s appointment, finding no merit in her arguments. View "In re Estate of M.A.C." on Justia Law
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Montana Supreme Court, Trusts & Estates
Davis Trust v. JHD Properties, LLC
Two brothers, Jim and Charles, manage two LLCs, JHD Properties, LLC, and Berry Hill Properties, LLC, which were established by their father as part of his estate plan. Each brother, along with two other siblings, holds a 25% equity interest in the LLCs through individual trusts. The LLCs own approximately sixty-eight acres of undeveloped land in Wake County, North Carolina. The operating agreements of the LLCs require unanimous agreement between the two managers for any binding action. Since 2018, Jim and Charles have been unable to agree on the use or sale of the property, leading to a managerial deadlock.The plaintiffs, James H.Q. Davis Trust and William R.Q. Davis Trust, filed an action seeking judicial dissolution of the LLCs, arguing that it had become impracticable to conduct the business of the LLCs due to the deadlock. The Business Court granted the motion to intervene by the Charles B.Q. Davis Trust and later denied the Charles Trust’s motion to dismiss. Both parties filed cross-motions for summary judgment. The Business Court granted summary judgment in favor of the plaintiffs, concluding that the deadlock made it impracticable to conduct the LLCs' business in conformance with the operating agreements.The Supreme Court of North Carolina reviewed the case and affirmed the Business Court’s decision. The Court held that judicial dissolution was appropriate because the managerial deadlock prevented the LLCs from conducting any economically useful activity and there was no mechanism in the operating agreements to break the deadlock. The Court concluded that it was not practicable for the managers to operate the LLCs in accordance with the operating agreements, thus affirming the grant of summary judgment for the plaintiffs. View "Davis Trust v. JHD Properties, LLC" on Justia Law
In re Estate of Johnston
A man passed away, and his wife made a claim on his estate for half of the money he had removed from their joint bank account before his death. The wife argued that the couple owned the account as joint tenants, and her husband had withdrawn funds exceeding his interest. The district court dismissed her claim, concluding that she was making a claim for conversion sounding in tort and had not met the legal standard.The wife appealed, arguing that the district court applied the wrong legal standard and that a standard from caselaw on joint tenancies should apply. The Iowa Court of Appeals agreed with her, reversed the district court's decision, and remanded the case. The estate sought further review from the Iowa Supreme Court.The Iowa Supreme Court affirmed the decision of the Court of Appeals, holding that the district court applied an incorrect legal standard. The correct standard, as established in Anderson v. Iowa Department of Human Services, involves determining the respective rights of joint tenants based on their agreement and the presumption that each joint tenant is entitled to half of the joint account, which can be rebutted. The court remanded the case for a new trial to allow for proper fact-finding regarding whether the husband removed funds in excess of his interest in the joint account. View "In re Estate of Johnston" on Justia Law