Justia Trusts & Estates Opinion Summaries

The Supreme Court affirmed the judgment of the Industrial Commission dismissing Shannon Stocks's claim for death benefits, holding that Stocks - the decedent's alleged, cohabitating fiancee - lacked a legally-recognized relationship and thus could not file a claim for death benefits.The decedent in this case died from injuries sustained in an industrial accident at Defendant. Plaintiffs - the decedent's daughter, son, estranged wife, and Stocks - all filed claims for death benefits under the North Carolina Workers' Compensation Act. The Commission dismissed Stocks's claim for benefits, and a consent order was entered dividing the decedent's death benefits equally among the remaining plaintiffs. The court of appeals affirmed. The Supreme Court affirmed, holding that Plaintiff could not file a claim for death benefits because she lacked a legal relationship with the decedent sufficient to qualify as a dependent under N.C. Gen. Stat. 97-39. View "West v. Hoyle's Tire & Axle, LLC" on Justia Law

In this case involving the extent of a a trustee's duties and powers concerning litigation challenging trust amendments the Supreme Court held that the subject trustee had the power to defend the litigation and that the court of appeals erred by applying N.C. Gen. Stat. 31-36, a statute applicable to will caveats, to this trust proceeding.Plaintiffs brought this litigation seeking to set aside certain amendments to a Trust created by the decedent. Plaintiffs sought relief against the trustee, Goldman Sachs Trust Co., N.A., for what they claimed were invalid distributions to defendant beneficiaries. Defendant beneficiaries sought an order directing Goldman Sachs to pay them the costs of defending the Trust, after which one plaintiff filed a motion to "Freeze Administration of Revocable Trust Until Beneficiaries Are Determined or...to Pay Defense Costs for All Purported Beneficiaries." The trial court granted the motions to pay. The court of appeals reversed and remanded to the trial court for entry of an order allowing the motion to freeze. The Supreme Court held (1) the trial court did not err by instructing Goldman Sachs to pay defendant beneficaries' litigation expenses as distributions in this action; and (2) a duty to defend under N.C. Gen. Stat. 36C-8-811 arises only when the action may result in a loss to the trust estate. View "Wing v. Goldman Sachs Trust Co., N.A." on Justia Law

In this case presenting the question of whether a handwritten codicil that referenced a provision of a self-proving will was valid the Supreme Court reversed the decision of the Court of Appeals reversing the order of summary judgment in favor of a propounder, holding that the issue was not appropriate for summary judgment but instead presented a question of fact for the jury to resolve.Sometime after the testator executed a properly attested self-proving will a handwritten notation was added to the will. If a valid codicil, the notation modified the will and disinherited the caveators in favor of the proponent. The superior court granted summary judgment in favor of the proponent and ordered that the will be probated as modified by the codicil. The Court of Appeals reversed and directed the trial court to grant summary judgment for the caveators. The Supreme Court reversed, held (1) the self-proving will and the holographic codicil together clearly evidenced testamentary intent by simply referencing the applicable portion of the will to amend; but (2) a genuine issue of material fact existed as to whether the phrase “begin[n]ing 7-7-03” showed the testator’s then-present testamentary intent. View "In re Will of Allen" on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing an order entered by the superior court removing a guardian of an estate and trustee under a special needs trust for breach of fiduciary duty.Mark Skinner was appointed as the guardian of the estate of Cathleen Bass Skinner. Mr. Skinner then executed the Cathleen Bass Skinner Special Needs Trust. Thereafter, the Assistant Clerk of Superior Court removed Mr. Skinner as trustee under the Special Needs Trust and as guardian of Ms. Skinner’s estate. The superior court affirmed. The Court of Appeals reversed. The Supreme Court reversed, holding that the Assistant Clerk did not err in determining that Mr. Skinner exceeded the scope of the discretion available to him to such an extent that grounds for his removal as the guardian of Ms. Skinner’s person and as trustee under the Special Needs Trust existed under N.C. Gen. Stat. 35A-1290 and 36C-7-706(b) and that these breaches of fiduciary duty justified his removal. View "In re Estate of Skinner" on Justia Law

Janice Willis executed a general warranty deed reserving a life estate in her home for herself and conveying the remainder to her Eddie in fee simple. While Janice was still alive, Eddie died, and his interest passed to his children. Janice subsequently sought reformation of the deed based on unilateral mistake of the grantor in the absence of fraud. The trial judge granted a directed verdict for Defendants. The court of appeals affirmed. The Supreme Court modified and affirmed the decision of the court of appeals, holding that, under Crawford v. Willoughby and its progeny, reformation of a deed was unavailable as a remedy in this case. View "Willis v. Willis" on Justia Law