Justia Trusts & Estates Opinion Summaries

Articles Posted in Tennessee Supreme Court
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This case involves a conservatorship dispute over Susan Davis Malone. Two attorneys involved in the case filed two motions requesting the trial judge to recuse himself. The first recusal motion was denied and affirmed on appeal. The second recusal motion was also denied. The attorneys then filed a second petition for recusal appeal, arguing that trial court orders entered after the Court of Appeals issued its opinion in the first recusal appeal, but before the mandate issued, are void for lack of subject matter jurisdiction.The Court of Appeals agreed with the attorneys and held that the orders were void. The counterpetitioners and co-conservators then filed an accelerated application for permission to appeal in the Supreme Court of Tennessee.The Supreme Court of Tennessee granted the application and reversed the judgment of the Court of Appeals. The court held that the stay imposed by the Court of Appeals in the first recusal appeal did not divest the trial court of subject matter jurisdiction over the case. The court also held that the attorneys waived any other argument that orders entered by the trial court should be vacated because they were entered prior to issuance of the mandate. The case was remanded for further proceedings consistent with this decision. View "In Re Conservatorship of Malone" on Justia Law

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In a wrongful death action against an assisted-living facility, the Supreme Court of Tennessee held that the claims were subject to arbitration as per an agreement signed by the deceased's attorney-in-fact. The court clarified two key points. First, signing an optional arbitration agreement is not a "health care decision" under the Durable Power of Attorney for Health Care Act. Second, the attorney-in-fact had the authority to sign the arbitration agreement on the deceased's behalf, considering the durable power of attorney gave her the power to act for him in "all claims and litigation matters". The court further ruled that the deceased's son, who brought the wrongful death action, was bound by the arbitration agreement because his claims were derivative of his father's. Consequently, the court reversed the decision of the Court of Appeals and remanded the case to the trial court.In the case, Granville Williams, Jr. died while residing at an assisted-living facility run by Smyrna Residential, LLC. His son James Williams filed a wrongful death action against the facility. The decedent's daughter, acting as his attorney-in-fact under a power of attorney, had signed an arbitration agreement with the facility at the time of his admission. The arbitration agreement was not a condition of admission to the facility. The key issues were whether the attorney-in-fact had the authority to sign the arbitration agreement and whether the son, who was not a party to the agreement, was nevertheless bound by it. View "Williams v. Smyrna Residential, LLC" on Justia Law

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The Supreme Court reversed the decision of the court of appeals in this interpleader action reversing the judgment of the probate court denying a motion for the probate judge's recusal in this interpleader action, holding that the probate judge's denial of the recusal motion was appropriate in this case.Before his election to the bench, the probate judge at issue served as an expert witness in an earlier case involving one of the defendants. Based on expert opinions the judge expressed in the prior case that defendant moved for the judge's recusal. The probate court denied the motion, but the court of appeals reversed. The Supreme Court reversed and reinstated the probate judge's judgment denying the recusal motion, holding that a person of ordinary prudence in the probate judge's position would not find a reasonable basis for questioning his rationality. View "Adams v. Dunavant" on Justia Law

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Once funds are withdrawn from a bank account held by a married couple as tenants by the entirety, the funds cease to be entireties property.Husband and Wife in this case deposited funds in a joint checking account designated with a right of survivorship. Husband later withdrew the majority of the funds from the joint account and placed them in a certificate of deposit (COD) issued solely in his name. After Husband died, the trial court concluded that the COD was an asset of Husband’s estate because the funds ceased to be entireties property when withdrawn from the joint account. The court of appeals reversed, ruling that the COD belonged to Wife because the funds were impressed with the entireties and could be traced to the joint account. The Supreme Court reversed, holding that the COD issued to Husband from funds withdrawn from the joint bank account belonged to Husband’s estate, not to Wife. View "In re Estate of Calvert Hugh Fletcher" on Justia Law

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The Supreme Court reaffirmed the general rule that to establish standing a contestant must show that he or she would be entitled to share in the decedent’s estate if the will were set aside or if no will existed.In this case the contestants to a will were five of the decedent’s seven children. The contestants were disinherited by a will dated October 1, 2013 and by a prior will dated October 11, 2012. The trial court dismissed the will contest for lack of standing based on two prior decisions of the Supreme Court. The court of appeals affirmed. The Supreme Court reversed and remanded, holding that the cases cited in the courts below did not announce a broad, bright-line rule that persons disinherited by facially valid successive wills lack standing. The court went on to hold that the contestants satisfied the general standing requirement long recognized in Tennessee by showing that they would share in the decedent’s estate under the laws of intestacy and under prior wills. View "In re Estate of J. Don Brock" on Justia Law

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The Tennessee Uniform Trust Code is intended to give trustees broad authority to fulfill their duties as trustee and gives trustees the power to enter into predispute arbitration agreements, so long as doing so is not prohibited under the operative trust instrument.At issue in this interlocutory appeal was whether the signature of the trustee of a trust on an investment/brokerage account agreement that included a provision requiring the arbitration of disputes bound the beneficiary of the trust to the predispute arbitration provision. The Supreme Court held (1) under both the Tennessee Uniform Trust Code and the operative trust instrument, the trustee had authority to enter into the arbitration agreement contained within the account agreement; and (2) applying the principle that a third party who seeks the benefit of a contract must also bear its burdens, the trust beneficiary in this case may be bound to arbitrate claims against the investment broker that sought to enforce the account agreement. The court vacated the trial court order compelling arbitration of all claims and remanded the case to the trial court for a determination as to which, if any, of the claims asserted by the trust beneficiary seek to enforce the account agreement. View "Harvey ex rel. Gladden v. Cumberland Trust & Investment Co." on Justia Law

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Husband and Wife signed a contract to make mutual wills and then executed those wills. Soon after Husband's death, Wife executed a new will that was inconsistent with her previous will. Following Wife's death, the children of Husband's earlier marriage filed an action asserting, among other things, that their stepmother's last will was invalid because it breached the contract to prepare mutual wills and that the will prepared by their stepmother pursuant to the contract to make mutual wills should be admitted into probate rather than her last will. The trial court granted summary judgment to Husband's children, determining that the contract to make mutual wills was supported by adequate consideration and that, therefore, Wife's last will was null and void. The court of appeals affirmed. The Supreme Court affirmed, holding that Husband's children were entitled to judgment as a matter of law sustaining their challenge to the validity of Wife's will because, as a matter of law, the contract to make mutual wills was supported by adequate consideration. View "In re Estate of Brown" on Justia Law

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This case arose out of the death of Decedent and the ensuing dispute between his two sons from a previous marriage and Linda Carraway, whom he married two weeks before his death. Decedent's sons (Sons) challenged the validity of their father's marriage to Carraway (Wife) and the validity of the lost will that Wife sought to have established. Wife claimed she was the sole beneficiary of Decedent's estate pursuant to the terms of his will. After a jury trial, the jury found in favor of Sons. The court of appeals affirmed. The Supreme Court reversed and remanded for a new trial, holding (1) Wife waived her argument that Sons lacked standing to contest the validity of her marriage to their father; but (2) the trial court erred in allowing into evidence testimony regarding Wife's real property holdings and her late mother's will, and the error was not harmless. View "In re Estate of Smallman" on Justia Law

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The issue in this appeal was whether the statutory requirements for execution of an attested will prescribed by Tenn. Code Ann. 32-1-104(1) were satisfied when the decedent in this case (Decedent) failed to sign a two-page will but signed a one-page affidavit of attesting witnesses. The trial court held that the will was not properly executed. The court of appeals reversed, holding that Decedent's signature on the affidavit satisfied section 32-1-104 because Decedent intended his signature on the affidavit to be his signature on the will. The Supreme Court reversed the court of appeals and reinstated the judgment of the trial court, holding that Decedent's signature on the affidavit did not satisfy the statute requiring the testator's signature on a will. View "In re Estate of Chastain" on Justia Law

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After Decedent's will was admitted to probate in the probate court, the Bureau of TennCare filed a claim against her estate seeking reimbursement for services provided through the TennCare program. Decedent's personal representative filed an exception to this claim. The probate court upheld TennCare's claim, and the Estate appealed. The circuit court determined that Decedent's real property was not subject to TennCare's claim. TennCare appealed. The court of appeals vacated the circuit court's judgment and affirmed the probate court, holding that the circuit court lacked subject matter jurisdiction over the appeal from the probate court and that the appeal should have been filed with the court of appeals. The Supreme Court affirmed, holding (1) the circuit court lacked jurisdiction over the Estate's appeal from the probate court's judgment regarding TennCare's claim; and (2) the real property owned by Decedent at the time of her death was subject to TennCare's claims for reimbursement. View "In re Estate of Trigg " on Justia Law