Justia Trusts & Estates Opinion Summaries

Ginger Collins, acting on behalf of her mother Jean Mace, sought to invalidate the sale of Jean’s home, which was sold by her sister Judy Mace without Ginger’s knowledge. Jean and her husband had transferred the property to Judy, who lived with them and acted as their caretaker. After Jean was moved to an assisted living facility and Judy was diagnosed with cancer, Judy created a revocable trust and transferred the property to it. Shortly before her death, Judy sold the property to Deborah and Raymond Luther. Ginger, believing the property was held in trust for Jean’s benefit, filed suit to evict the Luthers and invalidate the sale.The District Court of the First Judicial District, Boundary County, granted partial summary judgment in favor of Scott Mace (Judy’s cousin and trustee) and the Luthers, dismissing Ginger’s resulting trust claim. The court ruled that the deed transferring the property to Judy was unambiguous and that extrinsic evidence was inadmissible to establish a resulting trust. Ginger’s motion for reconsideration was denied, and the court also denied Scott Mace’s request for attorney fees under the Trust and Estate Dispute Resolution Act (TEDRA).The Supreme Court of Idaho reviewed the case and held that the district court erred in excluding extrinsic evidence to support Ginger’s resulting trust claim. The court emphasized that extrinsic evidence is admissible to establish a resulting trust, as it can reveal the parties’ intent. The Supreme Court vacated the district court’s judgment, reversed the grant of partial summary judgment, and remanded the case for further proceedings. The court declined to address the public policy argument and denied attorney fees on appeal for both parties. View "Mace v. Luther" on Justia Law

This case involves the reformation of a trust to remove male beneficiary restrictions and replace them with gender-neutral language to benefit successive generations of the Terteling family. Joseph L. Terteling, his former wife Carolyn E. Terteling, and their three granddaughters filed a petition to reform Terteling Trust No. 6 to reflect the alleged original intentions of the trustors to benefit Joseph’s successive generations, regardless of gender. Thomas J. Terteling, a contingent beneficiary, objected, arguing that the petitioners could not demonstrate by clear and convincing evidence that a mistake was made in the drafting of the Trust or that it was the intention of all the trustors to benefit successive generations regardless of gender.The magistrate court granted the petition, concluding that the stipulated facts demonstrated by clear and convincing evidence that a drafting error had occurred in restricting the class of beneficiaries to male children only. The court found that the trustors intended to benefit all the children and descendants of Joseph, regardless of gender. Thomas J. appealed to the district court, which affirmed the magistrate court’s decision.The Supreme Court of Idaho reviewed the case and affirmed the district court’s decision. The Court held that substantial and competent evidence supported the magistrate court’s findings that a mistake occurred in the drafting of the Trust and that the trustors intended to benefit a gender-neutral class of heirs. The evidence included declarations from Joseph and Carolyn, a 1978 affidavit signed by all the trustors, and TEDRA agreements from 2013 and 2021. The Court concluded that the male-only beneficiary restriction was a mistake and that the original intent of the trustors was to benefit successive generations of the family, regardless of gender. View "Terteling v. Terteling" on Justia Law

The case revolves around a dispute over the ownership of funds in a joint checking account following the death of one of the parties named on the account. Karon “Kelly” Kelso was originally a joint owner of a checking account with his wife, Sandra Kelso. After Sandra's death, Linda Applington, a friend of Kelly’s, began helping Kelly process his monthly bills. Kelly later added Linda on his checking account as a joint owner with the right of survivorship. After Kelly's death, his son, Greg Kelso, became the personal representative and sole heir of Kelly’s estate. Greg sought to have the funds transferred to Kelly’s estate, but Linda claimed ownership of the account under the right of survivorship and declined to transfer the funds.The district court granted summary judgment in favor of Linda, finding clear and convincing evidence that Kelly intended Linda to have the funds in his account upon his death. Greg appealed to the Supreme Court of the State of Idaho.The Supreme Court of the State of Idaho reversed the district court’s grant of summary judgment and remanded for a jury trial. The court found that there were inconsistencies in the testimonies of Linda and Janet Overman, an employee of the bank, which raised questions about their credibility. The court held that summary judgment was not proper when the record raises any question as to the credibility of witnesses. The court also vacated the award of attorney fees to Linda, stating that the prevailing party has not been determined and fees may be considered at the conclusion of the case. View "Kelso v. Applington" on Justia Law

Appellants Walmart and New Hampshire Insurance Company appealed the Idaho Industrial Commission’s determination that the employee’s widow, Sue Jordan, was entitled to medical and death benefits. More specifically, they challenged the Commission’s application of the presumption set forth in Idaho Code section 72-228 where there was unrebutted prima facie evidence indicating that the employee’s death arose in the course of his employment. Finding no reversible error, the Idaho Supreme Court affirmed the decision of the Idaho Industrial Commission. View "Jordan v. Walmart Associates, Inc." on Justia Law

This appeal concerned the 2008 sale of real property located in Twin Falls, Idaho owned by the partnership White, White & Lawley I (“WWLI”), which sold the Property to White X Three, LLC, for $650,000. In 2009, after White X Three acquired and then substantially renovated the Property, it began to lease the Property. At the time of the sale, Xantha White, then a minor child, and Todd White, her uncle, each held a one-half interest in the White Family Trust. The White Family Trust was a one-third partner in WWLI when it sold the Property. Todd was also a member of White X Three, placing him on both sides of the sale and purchase of the Property. Although he had a conflict of interest in the sale, Todd did not obtain court approval for the sale pursuant to Idaho Code section 68-108(b), nor did he inform Xantha or her mother, who was also Xantha’s conservator, of the sale. Xantha (now known as Xantha Darrow) and the Trustee of the Xantha J. White Trust, Larry Braga, brought suit against Todd and White X Three, asserting that, because Todd did not obtain court approval for the sale of the Property, the sale was void and the Property should be placed in a constructive trust. Both parties moved for summary judgment. The district court granted partial summary judgment in favor of Todd and White X Three, concluding that the sale of the Property was not void because Idaho Code section 68-108(b) did not apply. The district court also declined to place the Property in a constructive trust but allowed Xantha's claim of breach of a fiduciary duty to continue. Xantha thereafter moved for an Idaho Rule of Civil Procedure 54(b) certification to allow her to appeal the partial judgment rendered against her. The district court granted her request, and this appeal followed. The Idaho Supreme Court found the district court erred in determining there was no issue of material fact that Todd complied with the terms of the Trust Indenture in consenting to the sale of the Property, both in general and in terms of the sale price. Further, the Supreme Court concluded the district court erred in declining to place the Property in a constructive trust. The case was remanded for further proceedings. View "Darrow v. White" on Justia Law

Robert Houston created a trust which, after amendments, created three separate subtrusts designed to become effective following Robert’s death: a “Marital Trust,” a “Grandchildren’s Trust,” and a “Residuary Trust.” Within the Residuary Trust, Robert created two "for the benefit of" ("FBO") trusts, one for each of Robert’s children, Patricia and Richard. A clause in the FBO Richard Trust granted Richard a testamentary power of appointment to direct how Richard’s share of the Residuary Trust would be distributed if Richard predeceased Robert’s then-wife Lyn. The Marital Trust separately provided that if Richard was not alive when the Marital Trust assets were distributed, Richard’s portion of the Marital Trust would be placed in a “Grandchildren’s Trust” to benefit Richard’s two children from his first marriage (Robert and Lyn’s grandchildren) Ryan Houston and Crystal Siegler. This matter was litigated in Richard’s probate case after his death. Before the magistrate, Richard’s second wife and the personal representative of his estate, Susan Marie Houston, claimed that Richard assigned his interest in Robert’s trusts to her in Richard’s will. Ryan and Crystal argued that because their father, Richard, had not yet inherited from their grandfather’s trusts before he died, Richard could not assign those interests to Susan. The magistrate court agreed with Susan and held that Richard validly assigned his interests to her. Ryan and Crystal, as potential beneficiaries of the Grandchildren’s Trust, appealed that decision to the district court, which reversed the magistrate’s decision. Susan appealed, arguing that the district court erred by converting the intermediate appeal to a trial de novo and by concluding the magistrate court’s interpretation of Robert’s Trust was unreasonable. After its review, the Idaho Supreme Court found no reversible error in the district court's decision and affirmed. View "Houston v. Houston" on Justia Law

Redginald Laren appealed the district court’s denial of his motion for reconsideration following the grant of summary judgment in favor of Krystal Demoney-Hendrickson and the Estate of Cynthia K. Juker. In 1994, Larsen purchased unimproved property in Twin Falls County, Idaho. In 2014, Larsen and Cynthia Juker were in a romantic relationship. Despite participating in an unofficial ceremony resembling a wedding in 2018, the two were never legally married. Shortly after the relationship began, Larsen and Juker moved into a home Juker owned. In 2019, Larsen and Juker entered into a contract to develop his Twin Falls property. About a month later, Juker unexpectedly died. According to Larsen, he and Juker entered into a series of oral agreements around the time they sought financing to improve the Twin Falls property: she would sell her property and they would use the proceeds to pay down the loan for the Twin Falls improvement. In contrast, the Estate contended Juker died intestate and never indicated her wishes for what was to become of her real property. The Estate sold Juker’s property and the proceeds were not applied to the Twin Falls property loan. Both the Estate and Larsen moved for summary judgment on their claims for partition by sale and declaratory judgment. The district court granted the Estate’s motion and denied Larsen’s motion. The Idaho Supreme Court determined the trial court erred in granting summary judgment to the Estate. After ascertaining the parties ownership interests, the Supreme Court determined the trial court had to determine whether partition by sale was warranted. View "Demoney-Hendrickson v. Larsen" on Justia Law

Wade Chapman (“Wade”) and his six siblings (“Siblings”) were the children of Wilford (“Bill”) Chapman. Bill had a life insurance policy for $7,000,000 that named the Chapman Family Multiple Power Liquidity Trust (“Trust”) as its owner. Wade, along with Siblings, were named as the Trust’s beneficiaries. Wade was also named a trustee. After Bill passed away, Wade learned that he was listed as the sole beneficiary of the life insurance policy and retained the entirety of the death benefit for himself. Siblings sued Wade for breach of fiduciary duty, among other causes of action, arguing that the policy was a Trust asset, and its proceeds should have been distributed equally among them. The district court agreed and granted summary judgment in favor of Siblings. It also awarded prejudgment interest against Wade under Idaho Code section 28-22-104 and attorney fees under Idaho Code section 15-8-201, a provision of the Trust and Estate Dispute Resolution Act (“TEDRA”). The Idaho Supreme Court affirmed the district court’s grant of summary judgment to Siblings, affirmed in part and reversed in part the award of prejudgment interest, and reversed the grant of attorney fees to Siblings under TEDRA. View "Vouk v. Chapman" on Justia Law

Donald and Marjorie Woodfin married in 1997. At the time, Donald had two adult children, Kathleen (Kathy) Gestner and Ray Woodfin, and Marjorie had two adult children, Julie Divine and Colleen Shiras. Donald and Marjorie created the Woodfin Family Trust, a revocable trust, in 1999. Upon the death of the surviving spouse, the 1999 Trust identified the primary beneficiaries as Ray, Kathy, Colleen, and Julie, who would receive a sum of money and any remaining assets in equal shares if either or both settlors were deceased. Marjorie amended the Trust several times following Donald’s death. In 2002, Marjorie’s changes included adding additional successor trustees. Marjorie was diagnosed with breast cancer in 2017. Julie drove Marjorie to meet with attorney Robert Green in Coeur d’Alene regarding another trust amendment. Green met with Marjorie alone. In the meeting, Marjorie explained that she was disappointed in her stepchildren because she believed they had treated her poorly since Donald’s death. Marjorie died on October 12, 2018, at age 92. After learning about Marjorie’s passing, Kathy called Julie to inquire about the Trust and Julie sent Kathy and Ray the May 29, 2018, letter. Kathy and Ray subsequently filed a complaint seeking declaratory relief. Kathy and Ray requested the district court to declare the 2018 amendments were void due to Julie’s undue influence and order Julie to distribute $100,000 to Ray and $100,000 to Kathy. Following a bench trial, the district court determined that the evidence “overwhelmingly supports a conclusion that Marjorie had full testamentary capacity when she amended the Trust on May 29, 2018.” Kathy and Ray timely appealed. Finding no reversible error, the Idaho Supreme Court affirmed judgment against Kathy and Ray. View "Gestner v. Divine" on Justia Law

A dispute over attorney fees arose from the probate proceedings of Eric Milo Hirning’s estate. Appellants challenged the district court’s affirmance of the magistrate court’s decision to allow the personal representatives to recover their legal expenses incurred in the administration of the estate, pursuant to Idaho Code section 15-3-720. The Appellants also challenged the attorney fees awarded to the Respondents on intermediate appeal pursuant to Idaho Code section 12-121. Finding no reversible error, the Idaho Supreme Court affirmed the district court. View "Uzzle v. Estate of Eric Milo Hirning" on Justia Law