Justia Trusts & Estates Opinion Summaries

William Lorenz died in 2010. The county court admitted William’s last will and testament and two codicils to formal probate and also appointed William’s daughter, Theresa Lorenz, as personal representative of the estate. Alice Shea, William’s former wife, filed a petition challenging the rejection of her claims in the estate, seeking the appointment of a special administrator and challenging the second codicil of William’s will. The county court awarded summary judgment to Theresa except in regard to Alice’s claims regarding alimony and interest on a late payment. The court of appeals affirmed the county court’s order but modified the court’s dismissal of Alice’s request for the appointment of a special administrator to reflect that the request should have been dismissed without prejudice. Theresa petitioned for further review, assigning three errors relating to the issue of the special administrator. The Supreme Court affirmed in part and reversed in part, holding that the court of appeals (1) erred in concluding that Alice’s filing of her claims and petition for allowance of those claims was sufficient written demand under Neb. Rev. Stat. 30-2726; and (2) erred in modifying the dismissal of Alice’s request for the appointment of a special administrator without prejudice. View "In re Estate of Lorenz" on Justia Law

After Eric Zornes won a lottery, Eric and his wife, Julia, commenced a gifting plan to Andy Wolfe, Jason Wolfe, and Jason Reed. These gifts were structured as loans, and each borrower made a promissory note for his loan, payable to Julia’s and Eric’s revocable trusts jointly. Andy’s note was secured by a deed of trust for real property. Julia and Eric later divorced pursuant to a settlement agreement. When Eric found that Andy’s house had been sold and that Julia had retained the proceeds of the sale, Eric filed this complaint alleging that Julia had converted the proceeds of Andy’s note. Julia counterclaimed for partition of the Jason Wolfe and Jason Reed notes. The district court granted summary judgment in favor of Julia, concluding that even if Julia had converted the proceeds, the settlement agreement operated as an accord and satisfaction. The court also ordered partition of the promissory notes for Jason Wolfe’s and Jason Reed’s loans. The Supreme Court reversed, holding (1) Eric was not entitled to summary judgment on his conversion claim; (2) the settlement agreement did not constitute an accord and satisfaction; and (3) the lower court erred in the method by which it partitioned the Jason Wolfe and Jason Reed notes. View "Zornes v. Zornes" on Justia Law

The decedent in this case died in 2011. The contestants of her will objected to the petition to admit to probate either the decedent’s February 2011 will or her August 2001 will, alleging that the wills were invalid because the decedent lacked testamentary capacity and because the devises were the result of undue influence. After a trial, the jury found that the 2011 will was valid. The Court of Appeals affirmed. The Supreme Court affirmed, holding (1) the district court properly refused to instruct the jury regarding a “presumption of undue influence”; and (2) the district court did not abuse its discretion responding to a jury question or in admitting, in part, a video of the execution of the 2001 will. View "In re Estate of Clinger" on Justia Law

Constance created an LLC and a revocable trust. Constance transferred her real estate to the LLC and directed that, upon her death, her remaining property be transferred to the Trust. After Constance's death, her son David, as trustee of the Trust and as manager of the LLC, filed a declaratory action to allow the sale of the real estate pursuant to the Trust. Constance's other children, as beneficiaries of the Trust and members of the LLC, filed counterclaims for a declaratory judgment that the LLC should govern disposition of the real property and sought an accounting. The district court determined that the Trust would control the disposition and that David did not breach his fiduciary duties. The court of appeals affirmed. David subsequently moved for attorney fees and postjudgment interest, which the district court granted. The Supreme Court vacated the district court's order and denied the beneficiaries' request for attorney fees, holding (1) the award of attorney fees and costs was outside the scope of the mandate given by the court of appeals, and therefore, the district court was without jurisdiction to consider the motion; and (2) the beneficiaries were not entitled to attorney fees on the ground that David's motion was frivolous. View "Klingelhoefer v. Monif" on Justia Law

Plaintiffs, relatives of Decedent, sought Attorney's services in the administration of Decedent's estate. Plaintiffs later brought this professional negligence case against Attorney and his firm (Defendants), claiming that Attorney failed properly to disclose a conflict of interest to Plaintiffs, Attorney erroneously advised Plaintiffs to execute disclaimers that should be regarded as invalid and ineffective, and Attorney caused the estate to incur additional taxes by failing to include the purportedly disclaimed property in the qualified terminable interest property election on the estate tax return. The district court (1) entered judgment in favor of Defendants on the conflict of interest claim, and (2) dismissed as time barred Plaintiffs' claims regarding the disclaimed property and associated tax return elections. The Supreme Court (1) affirmed the judgment regarding the conflict of interest; but (2) reversed the judgments on Plaintiffs' remaining claims, holding that the district court erred when it concluded that the statute of limitations barred the claims. Remanded. View "Guinn v. Murray" on Justia Law

After Decedent died in 2010, her son, Robert, was appointed the personal representative of her estate. After Robert filed an inventory of estate property and a proposed schedule of distribution, Christy, the daughter of Decedent's other son, filed a motion for supervised administration, arguing that pursuant to Decedent's will, she was left an interest in Decedent's land but that Robert did not include this interest in the schedule of distribution. At issue before the probate court was what portion of Christy's interest in the estate was purchased by Mark, Robert's son, at a bankruptcy auction in 1998. The probate court concluded that Christy's interest in Decedent's share of the land was not transferred to Mark following the bankruptcy sale and approved Christy's motion for supervised administration. The Supreme Court affirmed, holding (1) the probate court did not err in finding Christy's motion for supervised administration tolled Christy's thirty-day deadline to object to the distribution of assets; (2) the probate court had jurisdiction to resolve the question of what was sold at Christy's bankruptcy auction as it related to Decedent's estate; and (3) the probate court made the correct determination regarding what Christy was entitled to through Decedent's estate. View "In re Estate of Odenreider" on Justia Law

Shirley Krzycki was the sole settlor, trustee, and beneficiary of the Shirley Krzycki Trust established to hold annual payments from an insurance settlement. Upon Shirley's death, Shirley's son Greg was named successor trustee of the Trust. Greg filed suit, claiming that sums on deposit in a bank account, formerly owned by Shirley as "primary joint owner," were property of the Trust. Shirley's daughter Robin was originally named "secondary joint owner" on this account, and Robin refused to give to the Trust the sums on deposit in this account. After a bench trial, the district court held that the balance of the Wells Fargo account belonged to the Trust. The Supreme Court affirmed, but for reasons different from those of the district court, holding (1) the remaining sums on deposit in the bank account for the benefit of the Trust were trust funds belonging to the Trust; and (2) Robin converted the funds in the account for her own use by refusing to turn them over to the Trust. View "Krzycki v. Krzycki" on Justia Law

The parties here were the surviving children of Decedent. Under Decedent's will, they were beneficiaries of a joint life estate interest in farmland. The will provided that no life tenant or remainderman could partition the property during the existence of any life tenancy. Through a codicil, Decedent later added a provision disinheriting any child who contested his will. After the probate court entered the final order in the probate proceeding, Appellees brought a partition action to divide the property. The district court dismissed the action, concluding that Appellees were not bound by the will's restriction against a partition because they had not contested the will during the probate proceeding. Appellants then filed a declaratory judgment, claiming that Appellees had forfeited their inheritance by contesting the will through the partition action. The district court dismissed Appellants' action. The Supreme Court affirmed, holding that the district court correctly determined that Appellants' partition action was not a will contest because it was filed after the estate was closed. View "Martin v. Ullsperger" on Justia Law

This was an action for partition of the real property in the estate of Ronald McKillip. At the time of his death, McKillip owned four tracts of land. McKillip's will left the property to his three daughters, "share and share alike." The probate court confirmed ownership of the real estate to the daughters in equal shares. One daughter brought an action to partition the real estate. A referee appointed by the county court determined that a partition in kind of the real estate was not possible and recommended a public sale. The court approved the report and concluded that the real estate could not be partitioned in kind "without great prejudice to the owners." The court ordered the referee to sell the real estate, and the personal representative appealed. The Supreme Court reversed, holding that the real estate should be partitioned in kind. Remanded with directions. View "In re Estate of McKillip" on Justia Law

The Nebraska Department of Health and Human Services (DHHS) provided Medicaid benefits for Virginia Lee Cushing during the final years of her life. After her death, DHHS filed a claim against Cushing's estate for recovery of the benefits pursuant to Neb. Rev. Stat. 68-919. The personal representative of the estate appealed from an order of the county court allowing the claim and awarding interest. At issue on appeal was whether DHHS timely presented its claim and, if so, whether it was proved as a matter of law. The Supreme Court concluded the claim was both timely presented and proved as a matter of law but modified the award of interest. View "In re Estate of Cushing" on Justia Law